Although processes for establishing a presence have become easier, it is far from being as convenient or straightforward as setting up in Hong Kong or other developed markets; some industries are still restricted to foreign-invested enterprises and the time frame for completing the procedures starts from two to three months compared to Hong Kong and the UK’s one or two weeks.

With this in mind and considering the challenges outlined above, “Why should I set up in China?” is a natural question that arises. Of course, one of the main reasons is the prospect of the Chinese market itself and being able to get better control and access to the available resources whether human or material. Setting up in China also gives confidence to your China-based customers and stakeholders that you are in China for the long-term and are able to provide the backup services required to support your product or service.

Companies need to be well-informed and prepared in order to execute their strategies successfully in these markets.  More importantly, companies must adopt a long-term and prudent view to how they develop their businesses in China away from traditional locations, and they will need to adopt an open-minded and flexible approach.