China Business Facts

In recent years, the Chinese government has increased their willingness to do business with foreign companies. This has been indicated by the increase in Free Trade negotiations around the world by China. The government has also made numerous changes in their domestic business laws to suit Western-style business practices.

This was particularly evident in 2005 when China was engaged in nine free trade agreement talks, involving 27 countries and regions.

China’s changes, when combined with the benefits of China’s quickly growing markets (see tables below) and relatively cheap labor, has resulted in a dramatic increase in two-way trade. A massive 44,001 foreign enterprises invested in China in 2005.

Many businesses are profiting from this increased two-way trade and China’s large market. For example - in 2005, the production of motor vehicles in China reached 5.7 million units, up 12.1 percent from the previous year. While this is a large increase, it was barely enough to match the equally dramatic increase in private vehicle ownership, which grew by 22 percent.

Although these opportunities for doing business are very exiting and the Chinese government is making many positive changes, the fact remains that in many areas, doing business in China IS RISKY. This can be seen in the data below which was sourced from the World Bank (2007).

No matter whether you're buying from, selling to or setting up in China, Sino Strategic can help your business avoid these China risks by working diligently to eliminate any nasty "surprises". At the same time, we do all we can to maximise productivity and efficiency, therefore providing you with greater profit.