Business within China
While China is gaining a reputable name in the global economic zone, countries that are positive to invest are not limited to Asian and the North America but also the United Kingdom. According to China Daily, British companies are optimistic about their growth prospects in China this year, based on a business climate survey released by the China-Britain Business Council and the British Chamber of Commerce in China. The survey, answered by 170 British businesses, showed that 80 percent of businesses expect revenue growth this year, while 56 percent reported profitable or highly profitable performance last year.
It is undeniable that China is now the center of the world’s greatest manufacturing firms because of the low labor cost but advantage-wise, it remain competitive with its quality and design, overall management expertise, and customer service. As China becomes today’s most recognized trader, it also acknowledges that the performance of domestic competitors has improved, with the most improved areas in marketing, branding, and competitive pricing.
Included in the British investors that were encouraged to invest with China is the PricewaterhouseCoopers (PwC), a global professional services firm that seeks expansion overseas and finds China’s positive economic outlook.
"We see two opportunities for PwC in China. One is to continue to help multinational companies to invest in China. Secondly, as Chinese companies continue to develop and they think about making investments in the other parts of the world, helping them to go into new markets and understand local customs, rules, regulations and getting their businesses set up there is another significant opportunity for us here," said Dennis M. Nally, PwC chairman.
Despite the growing number of investors that pick China to be their partners, one can always succeed in running a business in the country. Consider some tips that will help you establish a potential business in China. First off, make sure that the ownership structure of the business is clear. This means finding a local business partner will be the most important thing before proceeding farther.
In addition, do not neglect the legal steps as it will later bring you into trouble once caught that you have by-passed any of China’s policies, and once that happened, you will regret it for the rest of your life. China, like some other countries is strict and tight with its laws that despite corruption and illegal activities exist everywhere in the country, foreign business owners should make sure to establish corporations, pay taxes, and do everything aboveboard.
Finally, building a guanxi which is described as a network of contacts where you as an entrepreneur can call upon a connection when something needs to be done, wherein in a relationship should be established with trust. This sometimes is hard to accomplish especially for foreigners since they could be lying or deluding themselves while there is a big difference between knowing people and actually having those people trust you.
