China is the world's largest exporter and economic powerhouse. According to the IMF, the Asian giant has overtaken the US in terms of GDP at purchasing power parity since 2014. The country has been undergoing waves of reforms to encourage investment and facilitate exports for more than 30 years, allowing it to post annual growth rates close to 10%.
Adapting to the country's diversity
China, a country of contrasts, is far from being a single market: 56 different ethnicities live together, 94% of the population lives in a small half of the territory and the country oscillates between modernity and tradition. Consumption habits and patterns differ from region to region and even from city to city in China. For example, as the minimum wage is defined at the local level, it can vary from one to two within the country itself: it is 120 euros in Yinchuan and 245 euros in Guangzhou. The Chinese market is therefore relatively complex to understand and must be studied in detail before considering setting up there. A rigorous study phase will allow you to best plan how to adapt your offers according to the differences within the country. For more informations, you can try this out
Find a good local partner
It is difficult to tackle the Chinese market alone. Finding the right partner is not easy, but it has many advantages: access to an existing network of relationships, a better understanding of the culture, the specificities of the market, the regulatory requirements. It should be noted that partnerships are imposed by the government for certain sectors considered sensitive or strategic, such as alternative energies, biotechnologies or advanced industrial equipment. It is important to pay attention to the conditions of the partnership and to ensure that the legal framework for cooperation is well defined. The protection of intellectual property is a thorny issue in China and requires a certain number of precautions to be taken in order to avoid technology leakage.