Three of the Greatest Myths When Entering the Chinese Market

Home / Three of the Greatest Myths When Entering the Chinese Market

Resources

Cross-border September 15th, 2022

Three of the Greatest Myths When Entering the Chinese Market

China is a place for businesses that are looking for opportunities to earn, be known, and grow. But there are just some things that make this dream seem scary for some, and we’ll be falsifying those things for you.

Here are three myths about entering the Chinese market:

The greatest hindrance to your entry is language

When planning to start your entrepreneurial endeavor in one of the world’s largest economies, it is expected that having a decent conversation with the locals might be a tough job, and give you a hard time in doing business-related talks. But this is not as tough as people perceived it to be as there are things you can do to go around this barrier, as there are English-speaking people and even applications that can help you get through a decent conversation with the locals.

They don’t like doing it with western brands

Contrary to what a lot of people believe in, Chinese people have no problems doing business with western brands. Instead, they are having problems with attitudes such as rudeness, tactlessness, and insensitive to their culture and traditions. They have this extreme cancellation culture on brands that disrespect them. So as long as you know your limitations, respect their culture, and went there for the sole purpose of doing business, then you are welcome to enter the market without having any problems.

The Chinese market is only for companies with the biggest names

China does not just make opportunities available for those who are already in the spotlight, it also is an avenue for small businesses trying to shoot their shot and aspire for greater things not just for themselves but for their businesses in general. In fact, operational costs such as manufacturing expenses are a lot cheaper in China, which makes it a more starter-friendly country for businesses trying to enter the market.

There are a lot of myths and misconceptions when it comes to entering the Chinese market, but one this is for sure. All these myths and misconceptions won’t stop the heart and determination of an entrepreneur from entering China or any other country that has a lot of things and opportunities to offer.

Despite the economic impact on the global economy caused by the pandemic, Asia especially the central and southeastern parts have remained an attractive market for a lot of business owners looking to expand and establish their business within the region. But entering such a vibrant economy doesn’t always guarantee a smooth sail, there are still challenges that are inevitable. You can’t avoid them, but you surely can prepare for them. So here are some challenges of doing business in Asia to watch out for.

crop businessman giving contract to woman to sign — Photo by Andrea Piacquadio on Pexels.com

Ownership Restrictions in “SOME” Countries

Certain countries in the Asian region are strictly imposing rules and regulations for foreign business entering their market. While there are countries like Cambodia, China, Hong Kong, Malaysia, Singapore, and Vietnam that allow full foreign ownership of businesses, there still are countries that won’t let this happen. Some countries like Thailand, Indonesia, and the Philippines either allow it for all industries or only for certain sectors.

Minimum Capital Requirements

There are certain jurisdictions where a minimum capital is not required for businesses, which sounds good for business owners. But this doesn’t go both ways as it is only exclusive for local businesses and not for foreign brands. Countries like Cambodia require a higher capital for foreign businesses starting from a grand, and a much higher requirement for other countries.

a man and a woman brainstorming — Photo by Mikhail Nilov on Pexels.com

Local directors are required (in some but not all countries)

The need for local directors varies from country to country, take Malaysia and Singapore for example, these countries require local directors to be appointed. While situations like this happen in the mentioned countries, Cambodia is one of those countries in Asia that allows either foreign or local directors for businesses as long as they already have a local tax ID.

photo of women s clothing — Photo by Edgars Kisuro on Pexels.com

Having a physical office is a must

Jurisdictions all around Asia require businesses to at least have some type of office presence. And having a registered address is a statutory requirement for some countries. This may range from just having a registered office to having a physical presence that can be subject to inspection by local authorities.

These are just some of the many challenges you as a foreign business owner may face the moment you try to enter the Asian region. And preparing for them might increase your chances of finally establishing your own business in this challenging yet exciting market.

Learn more

Cross-border December 2nd, 2022

Top Five Countries For Doing Business in Southeast Asia

If you are a business trying to look for places where you can have your business achieve growth and generate lots and lots of profit, then you might want to consider entering the Southeast Asian market. It became an attractive market to be in after it has witnessed economic growth for the past years and still has a lot of untapped market opportunities waiting to be grabbed. But what are some countries that do well when it comes to business?

Here are the top five countries you may want to do business with.

Singapore

Who would wanna miss the opportunities behind the “Lion City”? The abundance of skilled workforce and resources, a robust economy, and an attractive tax system, plus a simple and straightforward procedure when starting a business that is fast and easy make it a pot of gold for people looking to start a business within the country. This makes it easy to be a “Zai” in the industry you’ve chosen in no time.

Hong Kong

Another opportunity-packed country at the heart of Asia, Hong Kong can also be a great country to start your entrepreneurial endeavors. As the country offers a plethora of advantages such as an easy incorporation process, a business-friendly environment, and a place where people can speak and understand the English language. This makes it easier to communicate with your target audience and deliver the message your brand is trying to convey.

Malaysia

With a pro-business government and a market-oriented economy, there’s no doubt that Malaysia is a good country to do business with. The country also provides a robust and conducive business environment that promotes and encourages growth, profitability, and healthy competition within businesses of all industries. This makes doing business in Malaysia a profitable country to do business with, as it can get you profits as high as the Petronas Tower.

Taiwan

It is indeed easy to do business in Taiwan, in fact, it ranked 15th out of hundred and ninety economies in the World Bank’s Ease of Doing Business Survey in 2020. It can also serve as a strategic location whenever you have more plans on expanding as it is near some of the world’s biggest economies such as China. And unlike other countries, Taiwan allows foreigners to have full ownership of their companies, without any minimum paid-up capital requirements.

Thailand

Although language barriers can be a problem when doing business in Thailand, the country still offers one of the most promising workforces in the world. This just means that any foreign business can benefit from a large pool of skilled workers to work for their companies. With steady growth, strong exports, and a vibrant economy, there’s no doubt that Thailand can lead your business to success.

Learn more

Cross-border November 24th, 2022

Four Great Benefits of Entering Cross-Border E-Commerce

In the past years, cross-border e-commerce has witnessed significant growth. This is not surprising as this kind of business model has connected buyers and sellers better than ever. Expanding your business internationally might sound ambitious and difficult at the same time, but taking this step can be the path towards achieving your entrepreneurial goals.

If you are still unconvinced about getting your business on the international scene, then here are four benefits of entering cross-border e-commerce.

Bigger market reach

Cross-border e-commerce has been proven to give businesses of all sizes countless opportunities. One of which is having your already healthy sales volume go higher by tapping some never before seen markets around the world. It also allows you to open your storefront to more untapped markets, exposing your brand to millions of potential customers who haven’t known about your business and what it offers.

Increased sales and revenue

One of the goals businesses have is to generate profit, and this is one of the many benefits a business can get upon entering cross-border e-commerce. Because by taking your brand in the international scene, you are also positioning yourself into a much larger audience. And having a larger audience means a larger demand for your business to fulfill.

An all-year-round demand

Businesses that have their operations limited in a certain country often get confined to the same peak and off-season every year. Businesses that engage in cross-border e-commerce on the other hand won’t have any problems with demand as they are operating in different countries, having different peak buying seasons throughout the year. Making each country’s seasonal surges keep your operations going.

Brand awareness

This is another great advantage of entering the international scene, your business gets to have improved brand awareness. This familiarizes people with your brand and helps them distinguish your business from other competitors. This can lead to an increase in revenue as customers are more likely to buy from familiar brands which they trust compared to unknown ones.

Learn more

View All