Asia and Australasia Business Ideas

Best Small Business Ideas to Start in China for 2021

tourists at forbidden temple
  • The country has a liberal tax system and excellent infrastructure for transport, power, and communication
  • Its labour force is talented, disciplined, cheap and skilled – the dream of every entrepreneur and manager
  • China is great for startups, especially for foreign entrepreneurs, which is why it’s the world’s second-largest economy
  • Exporters fulfil the needs of small businesses overseas that sell cheap Chinese goods. These Chinese products are always in high demand, particularly in North American and European countries

China has done all it can to emerge as the manufacturing hub of the world. Anybody can go to Shanghai, lease out a production line, and manufacture anything from a smartphone to bathroom tiles. The country has a liberal tax system and excellent infrastructure for transport, power, and communication. Its labour force is talented, disciplined, cheap and skilled – the dream of every entrepreneur and manager. This makes China great for startups, especially for foreign entrepreneurs, which is why it’s the world’s second-largest economy.

What avenues does China have in for setting up a business? Here are a few great ideas.

1. Non-conventional Education

China has a large number of foreign companies and nationals. They require a common ground for communication. The Chinese education system is single language-oriented and foreigners find it very difficult to communicate in the two common languages, Cantonese or Mandarin. Entrepreneurs that offer good standard organised courses on business and practical communication will get oversubscribed by customers.

2. Admission Consultant

Chinese universities provide the cheapest professional education in medicine and engineering. However, many people, including students, foreigners, or expats do not know how to get on those courses. Setting up a guidance centre to interact between universities and prospective students could be lucrative and profitable.

3. Merchant Exporter

Exporters fulfil the needs of small businesses overseas that sell cheap Chinese goods. These Chinese products are always in high demand, particularly in North American and European countries. They are much sought after by both manufacturers and retailers. Determining how much demand and potential sales there could be from importing nations, is the first critical step in becoming a merchant exporter.

4. Storage and Warehousing

Many small-time manufacturers require affordable and reliable storage facilities. You could rent out sufficient space at strategic locations that have useful transport links to buyers and sellers. As the world’s manufacturing hub, China produces the most goods worldwide, all will require storage before being transporting.

5. Clearing and Forwarding Agency

The amount of international goods that China trades is immense. A reliable agent to act on behalf of both importers and exporters for efficient goods movement has excellent potential in China. This type of business needs to coordinate with shipping agents for clearing goods quicker and on time.

6. International Legal Consultancy

Chinese owned companies are not very familiar with the legal and social differences involved when dealing with foreign countries. A middleman consultancy can help these companies acquire materials, lease properties, get legal papers in order, or set up any aspect of their business end-to-end. 

7. Representing Manufacturers

The Chinese government allow enterprising groups to officially get appointed by Chinese companies as their authorised representatives in foreign countries. Representatives can help companies to grow their sales and network internationally. People venturing into this area should open an office in their home countries or have sufficient tie-ups.

8. Immigration Consultant

A manufacturing hub like China handles a lot of international travel. There is a massive demand for dependable immigration agents to take care of both Chinese and foreign nationals, ensuring they get the right legal papers and status for immigrating into or out of China. 

If you plan to set up shop in China, you need to learn Chinese customs, culture, and people. It is always advisable to have a working knowledge of the Chinese language. It’s essential to have an understanding of how business works in China, traditions and governing system.

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