The challenge of China market entry has become an increasingly important one of Western companies of all shapes and sizes. With the country poised to overtake the US as the second largest global economy by and destined to remain an engine of global growth for the next decade, understanding how to enter large and complex market has become critical to most companies in the B2B sphere. Within China, rapidly changing demographics, rising incomes, increased consumer spending and an increasingly open business environment have all helped to make the Chinese market increasingly attractive to Western businesses across a variety of industries. Similarly, declining sales in their home markets has forced many US and European companies to relocate China firmly to the centre of their long-term global growth strategies. Breaking into the China market successfully can seem like an almost impossible task to foreign companies with limited or no experience of doing business there. With a population that exceeds 1.
As the fastest-growing major economy in the world, China continues to offer global companies attractive investment and business opportunities. However, doing business in China also means navigating the complexities that arise from China's unique historical, political, and cultural contexts. China offers plenty of opportunities for new ventures; the Chinese market continues to grow about 7 percent annually, and it is the second largest economy in the world behind the United States. With opportunity comes challenge, however. In this article, we outline some important challenges to consider when doing business in China and offer some recommendations for success.