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Success Stories

Among the three million European SMEs that are exploring the global market, more and more are succeeding in China. Read their stories below to find out how they have benefited from the services at the EU SME Centre and made their first entry successfully in China. 

Success Stories

Exploiting China’s High-end Anti-pollution Mask Market

Christopher Dobbing, a young entrepreneur from the United Kingdom, launched his anti-pollution mask business in China in 2013. As the Founder and CEO of Cambridge Mask Co, the company targets the high-end anti-pollution mask market. Now selling masks through a number of local hospitals, schools, corporations and retailers around the world, Chris has successfully diversified his distribution channels both online and offline. 

In his preparation to set up a company in China, Chris used the EU SME Centre’s consultation service to understand the company registration process and certifications needed to sell his masks on the China market. The Centre also provided him free temporary office space while he was looking for affordable offices in Beijing.

As to the challenges faced by European SMEs in China, Chris put recruiting and retaining staff as the most pressing one. Instead of having three underperforming staff, Chris suggested SMEs invest more in the most dedicated one.

The EU SME Centre was a valuable resource to help me accelerate my start up business selling anti-pollution face masks in China. Having a professional looking space to hold meetings in central Beijing is great, and the legal advice and information guides have proved to be really useful at this key point in setting up here. I would highly recommend the Centre to any small business looking to get started here.

-Christopher Dobbing, Founder and CEO, Cambridge Mask Co

Visit Cambridge Mask Co

Catering Artisan Cuisine to Chinese Palettes

Marco Polo Import Export is a food & beverage company with a special focus on Spanish gourmet food. Setting foot in the China market, first in Guangzhou, as early as 2008 to export red table wines, the company saw the demand for authentic Mediterranean cuisine and soon expanded its product portfolio to a wide range of artisan food, including cured ham, fish & vegetable preserves, chocolates & sweets and frozen prepared food. Marco Polo aims to deliver not only staple Spanish gourmet to high-end hotels and restaurants, but also a fine dining experience through restaurant design and catering management. 
 
Currently Marco Polo is making progress on two frontiers: using a franchise model to sell a leading Spanish chocolate and sweets brand Torrons Vicens (founded in 1775) in Tianjin; and collaborating with more distributors for their high potential frozen prepared food products, which are easy to make, very safe, and convenient to prepare.
 
The EU SME Centre has become a primary contact point for Marco Polo in its market approach. Through the Ask-the-Expert channel, the Centre’s enquiry help hotline, our experts assisted Marco Polo in understanding standard and conformity issues for imported chocolates, provided legal advice for franchising, and helped in identifying partners for business development. The company also got the chance to attend the World of Food Exhibition (2015) in Beijing and met face-to-face with our experts there.
 
Finding the right business partners in China can be a very challenging task. The Centre helped introduce Marco Polo to local contacts, as well as to deepen their cultural understandings to obtain more valid feedback. 
 
“My tip for SMEs: get someone on your team that speaks Chinese. It demonstrates your commitment to the market and will give you an understanding that you otherwise wouldn’t get.”
 
The future looks bright; Marco Polo is now looking to open a store in northern China and is in negotiation with business partners in Tianjin, introduced by the EU SME Centre. 
 
“Our company registered with the Centre and participated in various online seminars regarding different business areas for China, which we found to be very concise and useful. Furthermore, there is always a professional reply to my enquiries from your expert team…I felt grateful to receive those comments and to know whether our company is going the right direction or not. China is known to me, however it is changing ever so fast and it is always difficult to keep up with! “
 
-Marco Piccioni, Marketing Director, Marco Polo

Visit Marco Polo website

Taste of Galicia in China

The Galicia Food Cluster is a non-profit association that provides support services to food and beverage companies from Galicia in Spain. In September 2013, the Cluster successfully established itself as a Wholly Foreign Owned Enterprise (WFOE) in Shanghai in order to better serve a growing number of Galician SMEs interested in the food and beverage market in China.

The move to establish a WFOE in Shanghai was not a snap decision for the Cluster; instead, it involved over one year’s comprehensive market research and strategic business planning. As a crucial first step, the Cluster carefully compared the pros and cons of different legal entity options available for foreign organisations in China, such as a WFOE, a Foreign Invested Commercial Enterprise (FICE) and a Representative Office (RO). The Centre’s legal team helped the Cluster evaluate the feasibilities of each legal entity option, and revealed the difficulties for a foreign association to register a WFOE in China. As a part of the solution, the Centre’s legal advisor suggested the Cluster to register a company in Spain and then have this new company register a WFOE in China. 

As to its future plan, the Cluster aims to expand its network in China step by step and develop more partnerships between Galician food and beverage SMEs and their Chinese counterparts.  

Visit Galicia Food Cluster website

Supporting Chinese Hospitals with Clinical Products from Ireland

The Irish company Serosep is a leading producer of laboratory diagnostic products that are broadly used in hospitals and clinical practices. After identifying China as a market with huge potential for their products, Managing Director Dermot Scanlon and Export Sales Manager Eoin Kelleher had the idea of opening up a wholly foreign-owned enterprise (WFOE) in China. However, after attending a seminar of the EU SME Centre and enquiring several times with the Centre’s experts, they realised that it would be better to start with working with a distributor instead.

Dermot and Eoin then found Beijing ALT Biotech, a Chinese distributor with knowledge of the healthcare market in China. Together they completed the lengthy process of registering their company and products in China. This took more than 6 months, but then sales could finally start in China. At the time of the interview with Eoin, he expected the first order to be coming in the following weeks and it shipped from Serosep in May 2014. For the beginning the target clients are private practices and laboratories that work for private hospitals.

Serosep first got to know the EU SME Centre through another Irish SME. They took part in many of the Centre’s webinars and used the documents in the Knowledge Centre on the EU SME Centre website. In the beginning they sent several enquiries about setting up a WFOE in China through the Ask-the-Expert service. The information they received from the Centre made them change their perception of how to do business in China and how difficult it would be to enter the market. It directly impacted Serosep’s change of strategy.

We appreciated the competent advice from your experts very much. The seminar was brilliant. The legal expert who held it could answer every single detailed question. We left without one open question still in mind.

-Eoin Kelleher, Export Sales Manager, Serosep 

Visit Serosep Ltd. website

Slovenian Tech Dynamises China's New Energy Vehicle Market

Background

Elaphe Propulsion Technologies Ltd.is a Slovenian company and a global leader in development and production of in-wheel and direct drive propulsion systems for vehicles. In October 2015 Blaz Stefe, today general manager of APG-Elaphe Propulsion Technologies, Co. Ltd, contacted the EU SME Centre in Beijing.  Mr Stefe wanted to understand better several aspects of entering the Chinese market, local legislation, business development and partnering with Chinese companies. 

What We Did

Mr Stefe met at the EU SME Centre in Beijing Ms Hyklova, Legal Advisor, and Mr Jimenez, Business Advisor. He received advice on legal and procedural aspects of creating a Joint Venture (JV), was recommended to pay attention along with his lawyers to some of clauses, location implications for the JV were discussed, while the EU SME Centre also shared information about the New Energy Vehicle (NEV) market opportunities in China, which in 2015 were not that clear as they are today.

Success

The Chinese investor partnered finally with Elaphe and a JV company was established in August 2016, which is today leader in the production of in-wheel motors for passenger and heavy duty vehicles. Operation of production line started in January 2018 in Hangzhou.  

"We appreciate the quality information available at the EU SME Centre, and certainly we will accept the proposal of the EU SME Centre to draft a Case Study so our experience in China can be shared with others for the benefit of EU SMEs."
-Blaz Stefe, General Manager of APG- Elaphe Propulsion Technologies, Co. Ltd.

Visit Elaphe’s Website

A French SME’s Travels on the Belt & Road

Siveco China is a French SME specialised in maintenance and facility management consulting. It has been operating in China successfully for more than 10 years with more than 850 customer sites, utilising advanced technological tools to help Chinese plants, facilities and infrastructure owners increase competitiveness in the fast-changing domestic and global markets.

Siveco China’s involvement in the Belt & Road can be traced back to many years ago when it started to assist Chinese EPC (Engineering, Procurement and Construction) companies to maintain their overseas projects in Southeast Asian countries. One of its clients is China National Electric Equipment Corporation (CNEEC). Siveco China provides computerised maintenance management system (CMMS) and related services for the client’s two power plants in Malaysia and Indonesia. Later on, it developed more projects in countries including Brunei, Laos and Thailand. In 2012, its business also expanded to Algeria with new clients from South Korea. 

When reflecting on the company’s success in China, Bruno Lhopiteau, the Founder and General Manager of Siveco China, considered their long experience working with Chinese infrastructure projects combined with abilities to work with international clients as the key factors.

“I would also say that our experience in China, such a highly competitive market, has also made us very fierce and tenacious, with both extreme survival skills ready for short-term business as well as a very long-term strategic view towards the market. I think these are the characteristics of companies that succeed in China”, said Bruno.

As for the company’s future plan, Siveco China intends to target on the Belt & Road countries where Chinese and Korean firms are active, by talking directly to major infrastructure owners, usually the government ministries. It has a wide range of client profiles and plans to work more with overseas Chinese investors primarily in oil and gas projects and large Chinese state-owned enterprises in waste, water and power markets. It has also set up a dedicated team to help its clients better understand the system and how it adds value to their tenders. 

Siveco China has also observed some changing trends in this industry after working with Chinese clients for so many years. For example, it recently carried out a survey on “Maintenance in China” together with Shanghai University’s Sino-European School of Technology, which showed an increasing awareness among Chinese companies towards the importance of maintenance and risk prevention involved in operating large infrastructure projects. 

The company first came across the EU SME Centre at a business event in Suzhou, and has been using the Centre as a source of information on various topics including regulations, intellectual property, commercial development, and as a place to find experience from other companies. The Centre also published a case study to introduce the company’s experiences to more European SMEs. 

Leveraging Centre’s instrumental resources, the company has developed a more refined understanding of the Chinese market. 

“I think the Centre is an invaluable source of experience, especially for new entrants to avoid common mistakes and more generally to get ‘inspired’ from other SMEs, even those operating in totally different sectors. I particularly enjoy reading the case studies for this reason. The EU SME Centre is highly complementary of the chambers of commerce, which provide different services.”

– Bruno Lhopiteau, General Manager of Siveco China

To learn more about Siveco China, visit its website here.

Visit Siveco China’s Website

EU SME Centre Supports German SME on Tax Efficiency

Background

KFIV is a commercial agency based in Germany which supplies the German and other European OEM automotive industry with high-quality components from China.

Since 2011 KFIV represented a Chinese manufacturer of automotive wire and cable.  It introduced this company to European customers and established a supplier relationship.

For this service, KFIV received a commission from the Chinese company’s sales to European customers. 

In 2014 the Chinese company informed that they were obliged to withhold a local tax for KFIV in China, at the rate of 15%.  KFIV then communicated and negotiated with the local tax authority in China. 

What We Did

In the process, KFIV sought assistance from the EU SME Centre and received clear advice from the Centre that, since KFIV did not send staff to China for the services provided to the Chinese company, no permanent establishment in China has been constituted according to the bilateral tax treaty between China and Germany. Therefore, the fee KFIV charged for the service provisions in Germany is not subject to enterprise income tax in China.

To learn more about China’s non-resident enterprise tax, read the Centre’s complete guideline here.

Success

With such information, KFIV succeeded in the negotiation with the Chinese tax authorities.

Eventually, the tax rate applied was reduced from 15% to 5%.

Quote by the company on EU SME Centre Services: 

In a China local tax issue we doubted about the statements of the Chinese partners. With the fast and competent advice from the EU SME Centre the issue was clarified, the tax was reduced from 15% to 5%. Considerable 10% savings on the commission income for our company. We greatly appreciated the extraordinary professional performance of the EU SME Centre. We are still very much grateful about your valuable authoritative advice in the tax issue with the China local tax administration.

- Karl Fischer, General Manager, KFIV GmbH

Spanish SME Brings New Functional Ingredient to China

Entering new active ingredients into the food or health industry market can be hard, in particular if the company is trying to export its products abroad. For the case of China, market access regulations can be of great complexities. 
Asking for assistance in these regards, the Spanish company Lipofoods contacted the EU SME Centre. The representative of the enterprise discussed with our experts about the imports of a phytosterols in 2017, a specific functional ingredient with cholesterol lowering effects. Following further consultations, the company managed to master the modalities that need to be followed in order to export its products to China. This understanding affected the positive growth of the company’s exports of calcium to China in 2017, another functional ingredient produced by Lipofoods. 
Recently, Lipotec – the company from whose spin-off started Lipofoods- attended the EU SME Centre’s training “How to Set Up a Cross-Border WeChat Shop”, held in Barcelona.  The company contributed to the discussions of the training by providing their own experience with Chinese market access regulations. They shared with us that a well-known cosmetics firm has just started to sell online in China a cosmetic with some of Lipotec's active ingredients..
“I personally consider the EU SME Centre as a great support for European Companies in order to have a better understanding of the complexity of China, in terms of regulatory, trends, culture, society and business. I really appreciate the great support of the EU SME Centre and especially from Rafel Jimenez Buendia, for his personal and professional help.”

Background

Entering new active ingredients into the food or health industry market can be hard, in particular if the company is trying to export its products abroad. For the case of China, market access regulations can be of great complexity. 

What We Did

Asking for assistance in these regards, the Spanish company Lipofoods contacted the EU SME Centre. The representative of the enterprise discussed with our experts about the imports of a phytosterols in 2017, a specific functional ingredient with cholesterol lowering effects.

Success 

Following further consultations, the company managed to master the modalities that need to be followed in order to export its products to China. This understanding affected the positive growth of the company’s exports of calcium to China in 2017, another functional ingredient produced by Lipofoods. 

 

Recently, Lipotec – the company from whose spin-off started Lipofoods- attended the EU SME Centre’s training “How to Set Up a Cross-Border WeChat Shop”, held in Barcelona.  The company contributed to the discussions of the training by providing their own experience with Chinese market access regulations. They shared with us that a well-known cosmetics firm has just started to sell online in China a cosmetic with some of Lipotec's active ingredients.

I personally consider the EU SME Centre as a great support for European Companies in order to have a better understanding of the complexity of China, in terms of regulatory, trends, culture, society and business. I really appreciate the great support of the EU SME Centre and especially from Rafel Jimenez Buendia, for his personal and professional help.

-Iván Marcos Peláez, Area Sales Manager APAC, lipofoods

 

Visit Lipofoods Website

Getting the First Container of Beer from the UK to China

Lancaster Brewery is a British company producing and selling a variety of beer products such as ales and ciders, located in the North West of England. 

The company entered the Chinese market in July 2016, successfully reaching the country and clearing the customs in less than a month. It targets Guangdong province to start with but plans to expand business in other first-tier Chinese cities with a focus on Shanghai in the near future.

Lancaster Brewery is currently exporting to China with the assistance of a local Chinese business partner who is handling the process of customs clearance and relabelling in bonded warehouses.  The company has also planned to send an employee to Guangzhou for a period of six months to represent the brand in the market, provide support to the partner and develop a network of distribution channels. 

During their market research process, Lancaster Brewery came across the EU SME Centre’s content online, including the webinar on Alcoholic Drinks Market in China and publications on the Food & Beverage Market in China and Ways to Enter the Chinese Market.  The information helped the company better understand the technicalities of exporting products to China and to clarify the requirements for labelling, customs procedures, and intellectual property protection in China.

The Alcoholic Drinks Market in China webinar, held on May 10th, provided me with crucial data to pitch the China opportunity to our company board and win their approval.

- Giulia Ravasi, International Export Manager at Lancaster Brewery

Lancaster Brewery aims to position its brand in a niche market in China to attract affluent consumers, including expatriates and Chinese who have previously worked or studied abroad and therefore have developed a taste and preference for foreign food products and brands.

As advice for other European businesses interested in the Chinese market, Giulia emphasised on the role of establishing trusted relationships with Chinese business partners, doing market research and willingness to look for help.

“Do your research and look for help. Sometimes SMEs lack the specific knowledge and skills required for such a challenging process, but help is available out there to overcome these obstacles and barriers”, said Giulia. 

Visit Lancaster Brewery’s Website

Expanding Research & Development Partnerships in China

The International Centre for Numerical Methods in Engineering (CIMNE) is a Spanish public R&D centre aimed at the development of numerical methods and computational techniques for advancing knowledge and technology in engineering and applied sciences. CIMNE is now expanding its R&D partnerships and promoting technology transfer activities in the Chinese market. Since its first project in China in 2005, CIMNE has successfully increased its activities through a company created in Beijing in 2013.

The EU SME Centre has provided critical support both in the course of establishing the company and in the subsequent business development process. Given the different practices and legal framework between China and Europe, legal compliance is a real challenge for any European SMEs willing to set up a base in China. CIMNE was able to confirm the advice obtained by independent consultancy firms on legal procedures for the company establishment. Through consultation services with the EU SME Centre, the company was reassured about its legal compliance in China.

CIMNE also received specialised advice in the ICT sector. The Centre helped the company to understand unique aspects of the Chinese market, which allowed it to adapt its operations to the local environment, redesigning the business strategy as well as revising key content for contracts signed in China. In addition, CIMNE has taken advantage of several matchmaking events organised by the Centre, by meeting with new business partners.

The EU SME Centre provides highly professional assistance. Their services are as spotless as those you might get from independent consultancy companies. For any corporate manager facing a new environment such as China, I would always recommend to double-check some key decisions with the EU SME Centre.

Sònia Sagristà, General Manager, CIMNE (Beijing) Technology Consulting Services Co. Ltd.

Visit CIMNE website

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