Entering the market

There are a wide range of options available for accessing the Chinese market. SMEs may export their products directly to China, use agents and distributors to sell the products, transfer technologies and designs to Chinese partners to derive income via royalty payments or set up their own presence on the ground.

Before entering the Chinese market, SMEs should review their current operation and future business plans to determine the most suitable business model. Furthermore there are a number of issues to be considered, for instance:

• Complying with Chinese quality and safety requirements
• Identifying the right distribution channels in China while identifying one’s customer base
• When licensing EU SMEs must consider how best to maximise their returns while minimising the danger of their IPR being infringed
• Before setting up in China, SMEs should determine the optimal investment vehicle in accordance with their actual business needs as well as the current China investment regulations and specific industrial policies

This section provides further information and practical advice on entering the Chinese market.