Learn the keys to expanding your business to China

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In an increasingly globalised market, it matters less whether you are a good or bad salesman. The key to success today, without a doubt, is to have good relationships that can complement your company's deficiencies. And a good idea for a business relationship is one that could be maintained with the Asian giant China. Today we present you with several keys to negotiating with China and expanding your business.

Since China opened up to the international market in the early 1980s, the country's economic potential has only grown . Despite the large differences between different parts of the country, a middle class with strong economic power has gradually emerged .


Unlike their parents, who experienced the economic and social challenges of recent times and decided to save and limit their consumption, younger generations spend more and demonstrate individualized preferences .

The importance of millennials should be taken into account in all business dealings with China . According to a recent study by Goldman Sachs , those born between the 1980s and 1990s account for some 415 million people, or around 31% of the Chinese population.

But that's not all. Millennials are more educated and benin number data more aware of and concerned about the planet. 25% of them have a university degree or higher, compared to 3% of their parents' generation. In addition, they make 40% of their purchases online and often travel outside their country's borders.


Over the years, China has made great strides to promote its foreign trade, such as reducing tariffs, quotas and trade barriers, without turning its market into a completely liberal one. But when it comes to trade with this country, they do not demand much more than another, although their legislative peculiarities must be well understood. This is because of the measures adopted by the government, which decides which sectors it wants to open to the economy and which it wants to promote. But in our case, we are going to understand what restrictions we can find when exporting to this country.

When importing products into China, all of them are classified as prohibited, restricted and permitted . Due to concerns about the environment, some toxic materials are prohibited, and certain electrical equipment is subject to quotas or licenses.

"In China, copying something is showing deep respect for its manufacture"

The Ministry of Commerce of the People's Republic of China (MOFCOM) regularly reviews the list of restricted and prohibited products and oversees all licenses to control imports. But products such as crude oil or fertilizers can only be imported through state-owned enterprises. So government interventionism is still evident today . It is better for the foreign supplier to clarify which category their product belongs to and to verify that the Chinese buyer is authorized to use the item. Otherwise, the customs authorities will reject it.


Once our product category has been verified, we must comply with Chinese competition laws , such as anti-monopoly rules, unfair competition or dumping. Therefore, if we comply with the laws, the Chinese State Administration of Foreign Exchange (SAFE) will grant us a class A license and we will have fewer restrictions for our products.

It is also advisable to check the authority of the company's legal representative , since he or she can act and sign on its behalf, and we could be doing business with someone outside the company. Some methods of action to verify that we can execute our contract would be to ask the Chinese company for its articles of incorporation or its business license.