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Docs Index - Working in Shanghai - FAQ - Is it worth a small business doing anything in China?
  Date 01-Aug-2005  Print current page  Show map

FAQ - Is it worth a small business doing anything in China?

Alex C-G

Is it worth a small business doing anything in China?



That really depends on what you want to do. While larger companies have the capital to open a market like China, small companies may only want to have their goods produced here at low cost, or outsource some labour-intensive work.


As for selling your products or services in China, be sure to do your homework. Lots of companies have got their fingers burnt by assuming what works in their own market would also work well in China. So, you'll need to look into market research, Chinese partners, import tariffs, that kind of thing. Networking is the key in China, and the more contacts you have over here the better your chances.


If you're thinking of something grander, then opening a rep office may be a possibility. Just bear in mind that you have to pay
tax on all expenses incurred by the office, as well as income tax on at least two people's salaries. Really though, the only reason anyone would want to open a rep office in China is to have an official presence in the country. If you go this route, then definitely do your homework. There have been reports of dodgy Western companies ripping some people off, though it's difficult to gauge how true this is.

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Docs Index - Working in Shanghai - FAQ - Is it worth a small business doing anything in China?

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