Guide to Doing Business in China

Discover ways to profit from the booming Chinese economy

By Irwin Speizer

The U.S. government and several other agencies are strongly supporting small businesses that want to do business in China with a host of programs. You may want to explore the possibility of doing business in China if you want to:

1. Lower your labor costs
2. Lower the cost of raw materials
3. Open up a lucrative foreign market for your goods or services
4. Expand your business
5. Boost your profits

Action Steps
The best contacts and resources to help you get it done

Know if you're ready

Determine if your company is prepared to explore business opportunities in China or if you need to take action to beef up your capabilities.

I recommend: Take the "Are You China Ready?" quiz from Export.gov to assess if you're ready to face the unique challenges of doing business on the other side of the world.

Attend trade shows

Trade shows provide an opportunity to find products to import, to showcase your products and to come face-to-face with Chinese buyers, suppliers, distributors and representatives. Trade shows take place on U.S. soil and in China.

I recommend: Find a searchable list of trade events at Export.gov and a list of more than 100 trade shows in China at Made-In-China.com. Contact a U.S. Commercial Service trade assistance office for help in getting your company or product included.

Look for leads

Finding opportunities is key to entering the Chinese marketplace. Several agencies and organizations keep vast databases of proposed projects and procurement notices.

I recommend: Search a number of Export.gov's databases for trade leads in China.

Ensure accurate communication

Use the services of an interpreter or translator to help you negotiate business deals in person and hammer out written contracts.

I recommend: Locate Chinese translators and interpreters at AsianA.com or get help translating product manuals, proposals, contracts and more at Made-In-China.com.

Understand the culture

It's possible to conduct business with China entirely through westernized middlemen. But if you do interact directly with your Chinese customers or suppliers, it's crucial that you follow proper etiquette. China is a country steeped in cultural tradition and a faux pas can cost you business.

I recommend: Sign up for cross-cultural training to improve your understanding of business etiquette and communication or view this list of dos and don'ts.

Travel to China

If you plan to do business with China, traveling to the country will be a necessity.

I recommend: The United States of America-China Chamber of Commerce offers visa processing via mail so you can avoid a trip to the Chinese Consulate or U.S. passport office.

Seek exporting assistance

The U.S. government is eager to increase U.S. exports to China, and several agencies stand ready to help. The U.S. Commercial Service, for example, operates export assistance offices in more than 100 U.S. cities, where counselors offer advice and help to small businesses, including how to navigate international trade rules. U.S. Export Assistance Centers, located in major metropolitan areas, are geared to helping small businesses compete and succeed in the international marketplace.

I recommend: Find a U.S. Commercial Service trade assistance office or a U.S. Export Assistance Center near you.

Find products to import

To bring products in from China, you need to know where and how to buy products, how to ship them and how to get them through U.S. customs. The Chinese government and its businesses are eager to help.

I recommend: Made-In-China provides a connection to thousands and thousands of products for import and allows you to make offers directly to the manufacturers or suppliers online. It also offers assistance with customs and shipping.

Outsource production

Chinese production costs are low and quality can be quite high. Result: Businesses that outsource their own production to China can often gain a competitive advantage when selling in the U.S.

I recommend: The U.S.-China Chamber of Commerce has a small business assistance program to help companies seeking to outsource production to China.

Helpful advice for making the most of this Guide

• •  Translate your business card: Let the Chinese know that you're serious about doing business right from the start by having your business card translated into Chinese.
• •  Take a trip: One good way to scope out the opportunities in China is to go there. U.S. and Chinese agencies, chambers of commerce and other organizations have regular group business trips to China, and there is often financial assistance for participants.
• •  Keep your passport current: If you plan to travel to China, pay attention to the expiration date on your passport; it must be valid six months beyond the return date of your intended stay.