Before You Set up Shop in China

Before You Set up Shop in China

Small companies face a long list of worries when contemplating outsourcing in the Chinese market. First, even top players have stumbled there (example: Microsoft). Then there is the red tape; simply registering a company in China can be a 30-step process. An unreliable legal system, odd government regulations and an entirely different set of cultural norms add to the challenge. Yet with its massive workforce and cheap labor, outsourcing to China can be worth the effort. This article examines many angles of the Chinese market from the small business perspective, including industry, location, investment structure, management and intellectual property protection. Solid tips abound. For example, while maintaining a permanent presence in China is a must, a Western manager can be ineffectual. Hiring a local Chinese manager and a part-time expatriate to work together is a logical solution.

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