9 tips for exporting to China

China can be a challenging market to enter. Even if you have a good product, Chinese customers may not necessarily choose to do business with you. The market is large, but competition is fierce. For small and medium-sized enterprises, expanding into China requires resources, a local presence and a long-term perspective. Chinese business culture relies on personal relationships and patience. You need to be committed to China and invest the time it takes.

Chinese businesspeople are highly skilled and pragmatic. They are quick to spot opportunities and embrace new ideas, but they have high expectations for quality, functionality and price. You need to tailor your offering to the Chinese market and be prepared for pressure on price. This may mean adapting technical features, design or your business model. China is in many ways a market economy, but the state plays a dominant role. Reaching major players can be difficult without support. In recent years, competition has intensified significantly across all industries. Finding your niche can be crucial to your success.

In China, trust between people who do not know each other cannot be taken for granted. 'Guanxi' and 'mianzi' are important aspects of Chinese business culture and are best understood as relationships, networks and saving face. Your Chinese counterparts expect you to build mutual trust, and this takes time. The process often involves several rounds of letters of intent, discussions, dinners and other social activities. They want to find out whether you are trustworthy, serious and committed for the long term. They build trust in you as a person, not in the company you represent. Patience and a long-term perspective are among the most important qualities you need to succeed.

Finding the right business partners is essential. Various Norwegian and Chinese consultancies specialise in helping international companies enter the Chinese market. Many are reputable advisers with industry expertise and years of experience in China, while others trade on tenuous connections and unrealistic expectations. Ask for references from previous assignments and check them. Keep track of your contacts and nurture your relationships, but replace them if necessary. Remember that everyone knows someone, so do not burn bridges. Background checks are one of the key services we in China can help you with.

In Norway, we are wary of conflicts of interest. In China, holding multiple roles is not only accepted but often respected. It signals influence, credibility and the ability to get things done. You may meet people who are both politicians and businesspeople. These grey areas can be difficult to navigate, but corruption is illegal and has been subject to a major crackdown in recent years. China is gradually improving its position in anti-corruption rankings. Cash transactions without a receipt are just as unwise in China as they are in Norway, and you should be cautious about paying the full amount in advance. At the same time, you need a clear and confident understanding of what it takes to build relationships. Dinners, drinks and socialising are expected. Expensive gifts, money and trips are unnecessary and may be seen as corruption.

There are a hundred ways to say no in China, but not all of them are easy to understand. Many Norwegian businesspeople have invested considerable time and effort in what they believed were valuable contacts and major opportunities in China, while their Chinese counterparts were trying to decline the partnership as politely as possible. Chinese tradition discourages causing the other party to 'lose face', as this would also reflect badly on you. A direct no can therefore be difficult. The cultural differences between Norway and China are significant, and it is easy to make mistakes. If you do not have first-hand experience of China, it is important to work with someone who can read between the lines and understands Chinese culture. Our team in China has this expertise and uses it to help Norwegian companies better understand the cultural conventions of doing business in China.

China is a complex society that can be difficult to navigate. Major changes happen very quickly, whether in laws and government regulations or market conditions. Companies can rapidly scale up to high volumes, so you need to be ready to deliver. But the market can also disappear overnight. You therefore need to stay informed and continuously adapt to change.

Make sure that both your company name and trademark are registered in your company's name, rather than in the name of an agent or another party. Stay in control of the process, and always check all documents before submitting them to the local authorities. Our team in China has a strong network of legal and IPR experts. We can give you the advice you need to protect your rights effectively. Although legislation has improved and registration processes have become considerably easier, implementation and enforcement still fall short. As a result, copying remains an issue in China. Consider IPR early – ideally before entering the market!

Last but not least: Good advice matters. Our advisers have expertise you will not find in Norway. And we have one clear goal: we want Norwegian businesses to succeed in China. We know the country and its culture, and we have strong contacts and networks. We will guide you when we see opportunities and warn you when something does not seem right. Call us sooner rather than later!