China has experienced a huge metamorphosis over the past quarter-century. In 1979, when economic reforms began, China was predominantly an agrarian economy with practically no private sector to mention. Since then, however, China has become the manufacturing factory of the world, raised two thirds of its people out of poverty and, in the past ten years, it has constructed enough roads to encircle the equator 16 times! This rapid rate of development is creating broad-ranging opportunities for business throughout China in sectors as diverse as energy, sustainable and environmental technologies, advanced engineering, healthcare and financial services. The world is gradually seeing China's demand match U.S. and European business power. Opportunities in China's Regional Cities The opportunities for business in China are not only in the popular Chinese business centers of Beijing, Shanghai, Guangzhou and Shenzhen, but likewise further adrift in various emerging regional centres. Companies will benefit tremendously if they could employ their strengths to the many opportunities throughout China. What are the challenges? Managing risk and confronting challenges is essential in conducting any business globally. China is not exempted. Strategies for the protection of intellectual property rights and due diligence are critical for success. Additionally, acquiring an understanding of Chinese business culture and the importance given to good relationships is essential. However, many of the potential pitfalls can be avoided with sufficient preparation, in-depth research and by seeking competent, quality legal and professional advice whenever needed. Customs & Regulations There are numerous agents and consultants inclined to represent on behalf of American and European companies desiring to do business in China. These range from large overseas trading firms with regional offices in China, to smaller specialist firms based in the region. An agent or consultant can prove priceless to a company without the resources to establish a representative office in China, or to companies requiring supplementary business intelligence on business practices in the country. The main function of a representative office is to promote products and establish contact with end users; to mediate with Chinese commercial and government organisations in matters relating to the company; and to monitor market opportunities.
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