Expanding Your Business Horizons To China: 7 Reasons You Should Look At

Filed in Business Research by on July 4, 2022 0 Comments

China is one of the leading destinations among entrepreneurs and businessmen. When people export their goods in China, they receive a high profit percentage as return on their investments.

But, why is that?

  • Is it because China has the highest population in the world?
  • Or, is it because its GDP will likely cross the US this year?
  • Do you know that Chinese work ethics is commendable?

Well, to be honest, all of these parameters are reasons why people expand their businesses in China. If you need to get more info on this, you can check the WFOE website.

Now, let’s explore our reasons for business expansion to China.

 

1: Higher GDP

China has a significant potential to increase its economic power, and if we believe in that power, their GDP will likely exceed the USA’s in 2022.

If you look at the 1960 statistics, China GDP was only 11% of the U.S., but 2019 statistics show that it is 65% of the US’s GDP, which proves how steady their economic growth is.

Even though economists expected that China would make this revolutionary breakthrough by 2030, the COVID19 pandemic has accelerated this timeframe. Sources now confirm that this event will take place by 2026.

So, if you plan to become a millionaire, expand your business to China now.

 

2: Innovative Landscape

China is the land of innovation. Their tech experts are so professional that they can simply see the best things one country has to offer, and can replicate the same in no time.

It gives the country a huge advantage in the commerce and trading front because they introduce new products every day to increase customers’ convenience.

This technological and scientific innovation has also been the cornerstone of China’s economic development. This new innovation trend has been the driving force behind attracting so many companies in this land.

This is a valid reason for you to expand your business to China, and the earlier you do it, the better.

 

3: Abundance Of High Quality Talent

China’s population is the highest in the world. But that’s not all the country has to offer. It also has a pretty skilled workforce that can be an asset to foreign companies.

Most Chinese citizens are bilingual, and they stay in business hubs such as Shanghai, Beijing, and Shenzhen. These are the top business cities in China, which means if you move your company here, you get to be the automatic leader among your competitors here.

When you hire Chinese people in your company that has opened a new office in China, you open your country’s gateway to those people and also makes the expansion easier.

 

4: Low Cost Of Operations

Even when the working standards and minimum wage have increased in China over the years, the operational cost is still pretty low.

The high population growth of China works in a favor here. Since there are so many people in the country, you can always find people to work for you in the lowest amount possible. It means, when you expand your business to Chinese horizons, you can expect a double jump in your profit margin.

Not getting the expected profit is one of the most common small business problems.

Since Chinese people are such experts in technological innovations, they often make goods that don’t demand so much manufacturing cost, which is another reason why doing business here is cheap.

 

5: Stable Business Atmosphere

Even if China believes in dictatorship and not democracy, it has done many good things for the country over the decades, and this has attracted many businesses here.

The political ambiance in China is so stable that it does not interfere with the economic, social, and political developments of the country that come through companies.

It means, if you open an office here, you will be able to do your business in peace without any interference from political leaders.

We understand that a one-party system isn’t perfect, but if that’s something that causes less political turmoil, we think it’s a good factor to help you make your Chinese expansion decision.

 

6: Symbol Of Work Ethic

Chinese culture values work ethics and due diligence. It means if you have to move forward in your career, working in a Chinese company can give you better opportunities.

Action speaks louder than words, and Chinese people truly believe in this motto.

Once you understand how effective, goal-driven, ethical, responsible, and professional these people are, you will be able to shape your company’s focus in a new direction.

You can also make sure that your existing employees learn the value of work ethics from these new people because the culture of workplace bullying is not synonymous with Chinese work culture.

 

7: Booming Customer Market

China has the fastest-growing customer market in the entire world, and if that’s not something a businessman can take advantage of, we don’t know what is.

According to 2021 statistics, the average family income of Chinese people increased by 13% recently, which means you can sell premium products at high prices in this nation, and people will buy them.

Chinese customers have also increased their spending habits significantly this year. In fact, there has been a double-digit growth in that spectrum, which proves you can grow your business in the country too.

 

Conclusion

Are you still with us?

It means you are almost convinced that China is a great place for business expansion.

We agree with you completely. So, if you need more information from us, feel free to let us know in the comment box. We can get back to you with a reply shortly.

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