How Can Small Businesses Do Business In China

While China is a big country half a world away from USA, this should not deter the small and mid-size business owner from exploring uni or bilateral opportunities. If you take out the State Owned Enterprise's (SOE), a very high percentage of Chinese businesses are entrepreneurial, who all are dealing with similar issues at their USA counterpart entrepreneurs.

Today's China is more SME friendly than ever. Unlike large multi-nationals or SOE's, the SME can remain low-profile, which lets them take advantage of many incentives that can create significant savings. Of course, manufacturing and outsourcing are prime targets for the USA SME to capitalize, however, in recent years, Beijing has been opening up markets such as Banking, Real Estate Investment, and other industries not before availble to foreign capital. In addition to the significant savings opportunity from sourcing from China partnerships, there is a large (>1.3 billion) market of consumers who seemingly have yet learned how to spend.

Today, the average saving rate is >50% of thier income, though predictions that one day they will become a consuming society and when that occurs, China likely will return to their perch of the worlds largest economy. China is the 'Wild West', which can bring both opportunity and challenges to the SME. Conducting business is very different in China than the USA, and should be both respected and adhered to if you want a successful venture. Currently, China is the only large economy in the world now that is still growing. USA SME can find opportunities both in China and also those Chinese companies seeking to expand to USA.