How to set up a business in China

I am going to talk about the negotiation in China and some of the key points that all investor have to know to set up a business in China.

First of all I have to say that all the conferences we assisted there in China were interesting and useful, and allow us to understand the life in China in different aspects and points of view. However the conference which I liked more was the negotiation in China and how to run a business in that country.In this conference showed us the way of doing business in China from a practical point view and not so formal like in other conferences told us.

The first thing we must know if want to set a business in China is how the economy works in this country. There is a 5 plan year, which is a plan where you can find all the economics actions that will be carry out by the government.


Inside this plan exists a catalogue for foreign investment which is a document that shows what kind of business is welcome and which one don´t. There are three categories:
• Encouraged category: In this category are the businesses which the government could help, give to the entrepreneurs money and support.
• Restricted category: To run a business that belongs to this category is harder because the foreign investor need a Chinese partner to help him. Laws say that require a suitable Chinese partner.
• Prohibited category: It is almost impossible to set up a business inside this category, although it could works negotiating with the local administration.



The negotiation with local administration to set a business in some regions is different and depends in which category your business is. It is so much different and depends on the region where you are. The administration in one district or region could be suitable for your business, and could be forbidden in other district.
Despite of the problems that the government put to the foreign investors in some cases, it is getting easier to run a business in China. This catalogue is becoming wider and allows more kind of business.

Other important key point that we learnt in this conference was that Shanghái is not like the rest of China. It is possible think about set up a business in other parts like west and north China because there are more help and support by the government and they are trying to develop these regions.

In conclusion, I would like to say that the main key point is: by many obstacles that stand between us and our potential Chinese partners due to cultural differences and law, all can be saved having a consistent product and a good business plan.

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