The Chinese Market

China is the world’s second-largest economy with a rapid but stable GDP and internal consumption growth over the last 20 years. Since 1978, China’s economy has undergone continuous reform and further integrates into the world economy, as a result of which external trade has experienced a dramatic increase. Various import goods from clothing, automotive, food and service sectors have already become integral ingredients of the daily life of the Chinese middle class. At the same time, China has conquered a significant role in the chain of world processing production – 40% of China’s export consists of contractors co-operation models. Chinese production is largely dependent on the knowledge of foreign partners, technologies and half-finished materials.

With all the above-mentioned, the Chinese market is very attractive as far as the investors are concerned. Still, it is very complicated due to the specificity of the business environment as well as business culture, which loads business with China with especial care and worry. A company without the necessary knowledge about the specific laws, business environment and related stumbling blocks of the Chinese market faces an insurmountable challenge. A representative of western business culture entering the Chinese market can face indeterminate and seemingly illogical situations at every turn, starting with initial business negotiations. Superficial knowledge about import and export management in China can incur time, energy and financial losses.