China is a very exciting country, both culturally and in terms of business. For foreign entrepreneurs it offers a number of interesting opportunities, although you will need to hold you nerve in this often volatile and diverse market.
Some of the positives you may get in China are: cheap and reliable technology, cheap and highly productive workforce, fertile land and good weather. China is also the country that has the second highest purchasing power parity when compared to the rest of the world.
In my experience, the overseas entrepreneurs who have succeeded where others have failed in China are those who have really explored the opportunities and sectors that are most open to new businesses and I’ve put together some business areas where there are openings in this huge economy that is also the largest importer and exporter of goods in the world.
Native English speakers are in big demand in China. Clearly, just teaching in a school will not build a business, but if you explore the provision of online courses you have a chance of creating a business with real value, especially when you consider the numbers in the Chinese population.
Ecological and environmental products
China has a serious problem with pollution and it is looking at ways to mitigate this with projects that include new energy, clean and renewable energy, green technology, reforestation, gardens and landscaping.
An Internet business
Most Chinese have access to the web and it is not difficult for overseas entrepreneurs to start a small-scale business online for the Chinese market. You will find that there is less bureaucracy than you might expect and fewer licenses and certifications required than in other countries.
Mobile phone accessories
China made mobile phones cheaper for the rest of the world.They can also supply USB cords, memory cards, batteries and other accessories. If you can find a supplier in China and sell their wares to the rest of the world, you potentially have a very profitable business.
Trading platforms and online businesses
The technology available in China favours online business and trading platforms. The main advantage of owning an online shop is that you don’t have to own or possess all the products listed in your on-ground warehouse. Just talk to some manufacturers and have an agreement that allows them to list their products in your store.
I’d also advise anyone doing business in China to bear the following in mind:
- Cultural differences – make sure you know your business etiquette
· Language difference – find a good interpreter and this won’t be an issue
· Loyalty – loyalty is very important to the Chinese
· Getting qualified and reliable manufacturers – do your research and due diligence.
Anyone can overcome these by being prepared, getting an interpreter where needed and having credible Chinese partners to help you out. This is a country that will continue to go from strength to strength – explore it now and find your niche as a foreign entrepreneur. It pays to get into the market early on.
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