Before you get there

EU SMEs should apply the same methodical approach when defining their business model for China as with any other market.

Market research should first be carried out to see if an opportunity does in fact exist and whether this opportunity is sustainable. In this regard, EU SMEs should not only look at the business environment in which they will operate, but should also consider whether their competencies and resources within this context are sufficient to provide them with a competitive advantage.

Due diligence should also be carried out on potential partners (e.g. importers, distributors, joint venture partners) to ensure that they are able to provide the support and services that will make for a successful business in China.

Time spent at this stage obtaining a better understanding of the market and potential partners, before getting there, pays off in the long run.