Although China is making huge progress in terms of its economy but still starting a business in China is very challenging because of the certain rules set by Government. Even the marketers have set rules for the market business. Many of the foreign countries are seeking ways to join the Chinese market but it is not that easy as it might put them into a political risk. This is because of the local business which creates these risks for the foreign countries to enter the market especially it is a huge risk for United States.
Making strong personal relations
There are many culture based differences which works as a barrier when one thinks to start business in China. It is very crucial to understand and accept these differences as a challenge, for successful startup of a business in China. Investors should work on their personal matters as it matters a lot in business and for that both parties need to give respect to each other. Hence if any foreign country wants to enter Chinese market with the aim of successful business, it needs to make strong relations with the marketers of China.
Make long-term commitments:
China always seeks for long term commitments as compared to small projects, as mega projects will help them increase their production in goods, factories and industries thus increasing the economy of state, China always think of its dominance over globe and for that purpose it allows countries to offer them with large scale projects. It is of mutual benefit to both parties as the countries which tend to invest can develop a successful business. Long term commitments basically means the other party should specify their long term aims and goals related to the business followed by a long process of meetings and gatherings which creates a friendly environment between both parties. This basically is nearly for the starting of successful business in China.
Involvement of Government in Chinese market:
As the economy of China is directly linked with government, making it difficult for the countries to enter the market. The governmental involvement in economic affairs is always a risk point for the foreign investors as to start business in China, those countries need to sign up long agreements with government following special terms and conditions. Foreign countries who tend to invest here can also please Chinese by offering some infrastructure related projects as it has always been the prime priority of Chinese government. China has worked to resolve this issue in recent years by legalizing the involvement of foreign investors by welcoming them to invest in their markets. This issue still needs to be resolved on complete basis as some of the governmental parties still have a strong hold over the markets and have set up very tough rules for the International investors.
Overcoming cultural barriers:
Chinese cultural barriers also includes the other factors including negotiations, style of greetings. For doing great business deals in China, investors need to focus on each and every aspect of these cultural barriers and they must try to work on these to fulfil their aim.