Doing Business in China For Dummies®

Considering Location Variations

Choosing where to start your business is obviously a crucial decision. In the end, the type of business you want determines which factors to consider. If most of your sales are in China, you obviously want to put convenience to customers at the top of your list. But regardless of where your customers are located, you need to keep some overarching considerations in mind. Just as in any country, you see variations in laws and resources from region to region. This section discusses some common factors to keep in mind as you look at various locations.

Many people classify cities in terms of development. First-tier cities are the large and most-developed cities. Second-tier cities are cities that are roughly as wealthy as places like Shanghai and Beijing but are smaller, or they’re large cities that are rapidly catching up to the first-tier cities. Third-tier cities are smaller cities that are in earlier phases of economic growth and expansion, and they’re a good deal behind first- and second-tier cities.

Finding good infrastructure

China’s infrastructure is strongest near the coast. However, its major waterways (particularly the Yangtze and the Yellow rivers) do provide good outlets from parts of the interior. The highway system is second only to the U.S.’s in terms of the number of miles laid. China is also rapidly adding to its roadways to make getting ...