What is it Like Doing Business in China
Why Do You Need Expert Support to Do Business in China?
There’s no market quite like China. Centuries-old tradition meets cutting-edge innovation here, with 1.4 billion consumers with growing buying power within its borders.
China is an economic success story, the largest, fastest transformation ever before in history. No other country has lifted so many people out of poverty, so quickly, through the sheer force of economic growth. And yet, after more than a decade working in China’s consumer market, I’m still in awe at the sheer scale, the innovation, and the relentless pace.
However, China is not easy, it’s also the most complex market on earth. It’s layered, regional, nuanced, and deep understanding is needed.
Why China?
China is the largest consumer market in the world. It boasts the world's largest export value and the second-largest import value in 2023. In 2023, China's exports reached $3.38 trillion, while its imports totaled $2.58 trillion (www.statista.com).
It is the world’s manufacturing capital, a global supply chain powerhouse, and a consumer superpower. More than 113 Chinese cities boasts populations of more than 1 million people. Each region is unique and is comparative to the EU - many markets encompassed within the borders of one country.
Whether you’re a South African SME, a multinational enterprise, a government agency, or an entrepreneur with global ambitions, China represents enormous opportunity. Given the changing global economic landscape and shifting trade routes, South Africa's total bilateral trade with China soared from US$1.34 billion in 2000 to US$34.18 billion in 2023 (https://issafrica.org). But it also comes with significant challenges:
What Makes China So Different and Demanding?
🔹 Regional Variation Is Real
China can not be approached as a single market with one overarching strategy. A one-size-fits-all doesn’t work here. What works in Beijing may flop in Chengdu. There are significant changes in consumer behaviour, purchasing power, and channel preferences between the various regions. You need a localized strategy, which requires help from those who knows how to navigate the China market.
🔹 Speed Is Relentless
They call it “China Speed”. Things move at breakneck speed here. While you’re still mapping out your market entry, your local competitors may already be pivoting on Version 2.0. In the West you launch once all issues have been sorted and all eventualities have been accounted for. In China competition is fierce. you often see entrepreneurs running with business ideas and working it out on the fly.
🔹 China’s Scale is at a Different Level
Until you’ve visited China, experienced the scale of people movement at the various transportation hubs, seen the infrastructure with your own eyes, walked the streets of Shanghai, or understand the size of a Tier-2 city, it is near impossible to truly understand the magnitude of this market. It’s the scale, the speed, and the diversity that gets you.
🔹 The Rules Change—Often Overnight
Policies, regulations, and market dynamics can shift fast. It is essential to have local insight and adaptability. It is important to be able to forecast next steps or potential pitfalls in order to prepare for them in advance.
🔹 Digital Isn’t Just Advanced—It’s a Parallel Universe
Facebook, Google, WhatsApp and X are banned in China. Similar, but different Chinese platforms have been developed and improved. These include WeChat, with it’s own complete integrated ecosystem, the famous Little Red Book (Xiaohongshu), Douyin, Bilibili, Alibaba, and more. These Apps are unique to China and are crucial for brands wanting to engage consumers, build awareness, and grow sales. Without a strategic digital marketing plan in China, your brand success has a very low ceiling. Speak to experts, contact us.
Contact Us at My China Link
At My China Link, we help South African and other foreign brands launch, connect, and grow in China’s business landscape. We aim to be your trusted advisor, your eyes and ears on the ground, and your support in-country. Whether you’re looking to source from, export to, enter or grow your market segment, we help clients unlock real opportunities.
Let’s talk. Go to the “Contact Us” section on the website, leave your message, and someone will be in touch!
