Foreign Access into Chinese Markets: Why China Wants Global Players in its Markets?

Foreign Access into Chinese Markets: Why China Wants Global Players in its Markets?

China has managed to emerge as the next global economic superpower in the last decade. It has not only become the second largest economy but has also bagged the title for the largest exporter. The ever-expanding consumer market in China offers a strong relationship between China and the rest of the world. The products that used to take up to 12 to 18 months are now being delivered within 4 to 6 weeks with the help of the Shenzhen port. This is just one of the examples of China being open to trade with the rest of the world.

With the implementation of the Cybersecurity Law, it became clear that the government doesn’t want businesses to share data with overseas partners. But doesn’t that contradict the Cybersecurity Law?

Not necessarily. The Chinese government is open to trade, but the data needs to remain within the country to prevent online threats, which might harm the cyberspace and risk national security.

The Shanzhai Ecosystem

The Chinese government is opening up its economic ecosystem for foreign tech giants and business tycoons to set their brands within the country. This means that working in Silicon Valley may have been a dream for many people, but that might shift to the rapidly emerging and expanding Shanzhai Ecosystem.

Shenzhen managed to take the world by storm through its cheap gadgets, accessibility and instant delivery. It did what Silicon Valley couldn’t manage to during its years of glory—it became a hub of a global of entrepreneurship, manufacturing and innovation. The Shenzhen ecosystem comprises and works with inclusive ways—which took time for other tech giants to incorporate in their business models.

They’ve successfully gone beyond making cheap products to now making sophisticated products combining hardware and software. These include app-controlled drones and time bookable electric scooters, translation devices, semi-autonomous vehicles and toy robots. It has quickly become a hub for investors to exercise their innovation capacities and for design thinkers to venture into an all-inclusive territory.

Why Is China Encouraging Global Players To Enter The Market?

There are two major factors as to why China wants global integration in its economy:

  • China has a huge consumer base, which demands more, better and varied options for products and services. Since incomes are on the rise in China, consumers can and want more choices. Consumers want access to high-end, cross-border brands, which offer impeccable products and services.
  • Another factor is China’s focus on reaping its home-grown profits. They want to learn and become successful in various domains to provide better services, products and integration to their domestic consumers. By allowing global investors to take part in the booming economy, they’re trying to be more open to learning from brands and companies that have already succeeded in their own niche.

This is an incredible opportunity for global investors to become a part of China’s growing economy. With China emerging as the next economic hub, it’s wise to get accustomed to the country’s unique business policies, protocols and culture.

The experts at Business China can help you with registering your company for a joint venture and with WFOE legal representation in China. Get in touch with them to learn more details about their services!

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