Exporting to China

Advantages and challenges of exporting to China

There are advantages and also potential challenges for NI companies doing business in China.

Advantages include:

  • largest country in the world by population
  • fast growing consumer market
  • growing number of middle income consumers
  • close proximity to Asia Pacific region and economies
  • marked growth ensured by Chinese monetary policy
  • forecast to become the world’s largest luxury goods market by 2020
  • London being positioned as a developing centre for Chinese currency business
  • flourishing business base
  • strong government investment programme
  • largest Information and Communications Technology (ICT) market in the world
  • over 160 cities of 1 million+ inhabitants with new cities emerging
  • coastal areas developing into sophisticated urban clusters

There are some unique challenges to consider when you are doing business in or with China.

Challenges include:

  • large parts of the economy are still closed to full foreign participation
  • strong competition from well-resourced and positioned state-owned enterprises
  • finding and retaining the right skills in the local workforce
  • complex business culture
  • language barriers
  • need for patience to build up trust and networks
  • significant time difference
  • weather extremes across the country and high levels of pollution in certain urban centres
  • anti-monopoly legislation used against foreign firms
  • bribery and corruption