china market survey research reports Foreign enterprises that provide retail services for certain products?including agricultural chemicals, cotton, grain, oil, sugar, and tobacco?face market access barriers (see Table 3). For example, only JVs with majority Chinese ownership may sell different types and brands of these products from multiple suppliers through more than 30 outlets. Under such restrictions, foreign retailers must make concessions on the size and independence of their business to access China?s market.
china market analysis Understand relevant PRC regulations and policies China has complex business licensing processes and market access limitations. Foreign investors must be patient when expanding their China operations as regulatory challenges may cause delays. On the other hand, some policies have helped retail businesses by lowering market entry thresholds, encouraging certain business formats, and boosting domestic consumption. Foreign companies should watch PRC policy developments, align their strategies with government priorities where possible, and take full advantage of government programs (see Coming to Terms with Industrial Policy).
Work with local business partners This could be a wise entry strategy for foreign companies that are new to China. Local companies can contribute valuable resources such as business networks, government relations, and knowledge of local market conditions (see the CBR, May-June 2008, The Re-Emergence of the Joint Venture).
china channel research reports Companies that have JV status may also have an advantage over WFOEs for some government incentive policies. Recent policies show that the PRC government sometimes prefers foreign investment in the form of mergers and acquisitions, which helps consolidate an industry and curb overheated competition.Offer third-party services Retailers in China, like in any other market, need strong support from efficient business partners such as third-party logistics, distribution, wholesale services, and supply chain management solutions. Some of these services sectors are just beginning to develop in China, and the PRC government welcomes foreign investment that can provide the technologies and expertise to help them grow.
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