5 Responses to “ What Is The Appropriate Method Of Market Entry Into China For Western Firms? ”

1. Rabbit on September 29th, 2009 8:29 pm

   There are three primary methods, well actually four:
   (1) use the missionary approach — go or send someone to simply live there a while, learning language and culture, and then the approach becomes obvious as your understanding of the people improves;
   (2) use the public resources to find customers or partners — the commerce department and import/export bank are all about greasing the wheels of commerce, speaking of which the Chamber of Commerce organization can help as well because that is also why they are there;
   (3) scour the business listings to find small companies in China that do what you do (or something close) and start your business there with a campaign to merge or partner with a Chinese firm that already does what you are wanting to do;
   (4) the traditional American way, just barge in and ‘do it’ — hire a translator, find a real estate agent, find a lawyer, rent (probably wouldn’t be able to buy) an appropriate space, go through the local red tape of business start up as these three people suggest, hang up your sign and go for it.
   The last one is what most Americans do first. The first one is notoriously time consuming and rarely seen as productive. The bulk of efforts tend to be: either find someone there to buy out or buy into; or simply look for trade lists that say XYZ company (however that translates) is wanting to buy [what you sell].

2. raysor on September 29th, 2009 9:02 pm

   You have to register a Chinese company which is then a wholly owned subsidiary ( they have another name I cannot think what it is) of your company.. Most of these parent companies (the ones I have seen anyway) are registered in Jersy/Guernsey (UK Offshore) Have a look at the structure of some of the Chinese companies on AIM. Like Geong PLC.
   Ah, I have just found it; it’s called a WOFE (Wholly Owned Foreign Enterprise) The Chinese don’t allow foreign companies to directly set up in PRC and the WOFE is the preferred method for US and UK companies at least.

3. Brinlarr on September 30th, 2009 3:03 am

   partnership with chinese firm
   chinese laws are more elastic than western ones
   , you cant do business with out partner

4. Emmanuel M on September 30th, 2009 9:59 am

   To register the company

5. Kapboy on September 30th, 2009 4:33 pm

   jump in the back of a truck or take a boat

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