Market entry into china
OPPORTUNITIES AND RISKS
Entering a foreign market offers many opportunities and exposes a company to substantial risks. Knowledgeable, reliable and trusted business, legal and tax advisors are important to ensure that the anticipated projects will be successful.
There is no standard blueprint. The details of the approach depend on the specific industry, circumstances and strategies.
CHEURAM´s management has been involved in many market entry scenarios and in its offices in Hong Kong and Beijing analyzes the clients´ plans before making recommendations for possible strategies and adequate steps to achieve short, medium and long-term results.
Define the market entry strategy for China by taking into account factors such as
- how the Chinese “view” the foreign firm’s product entering the market
- the demand for the product
- its the future growth of demand
- the firm’s resources; and commitment to entering this market
- the time-frame to enter and reach goals
There are three fundamental strategies for a market entry into China. Each strategy has advantages and disadvantages:
export via a Hong Kong distributor
export via direct channels in China
im Rahmen eines Joint Venture mit einem einheimischen Partner
China is a huge, fragmented market. Clients often utilize more than one strategy to penetrate the market.
Legal issues are most important and must be reviewed carefully.
CHEURAM will make recommendations for their implementation. They include corporate and tax structures, in-tellectual property protection (patents, trademarks), agreements of any type, product liability and asset protection.
Careful tax planning is equally relevant.
It involves the Chinese and foreign ventures, their interaction (double tax treaties), tax compliance and filing obligations.
CHEURAM´s offices in Hong Kong and Beijing cooperate with established local and international accounting firms which ensure that the clients´ tax matters are handled professionally.