Your step by step guide in exploring the Chinese life science Market
I am the new Business Development Manager (Asia) and my name is Fan Sha. As the Chinese employee of the Pivotal Scientific team, my responsibility is to help international companies enter the Chinese market and have access to innovative Chinese suppliers.
I took my Bachelor degree at Wuhan University in China and a Master’s degree in Applied Biotechnology at Uppsala University in Sweden. In my previous career, I served for companies in the Pharmaceutical and Clinical Diagnostic industries.
Due to the rapid growth of the Chinese market, international companies are exploring the Chinese market with greater interest and efforts. In addition to exporting products into the Chinese market through distributors, more and more companies are setting up new offices in China and have direct business experience within the market.
Generally speaking, there are three entry forms for international companies to the Chinese market. The easiest way is to set up a representative office within China to promote brand awareness and products. In this way, there is no restriction on registered capital. However, there should be no direct transaction between the representative office and end users. Another form is to start a joint venture with a Chinese company with expertise in a distribution network within the local market. However, it can be difficult to find a company to partner with consensus in business and strength in sales network. Indeed, more and more international companies are setting up branch offices in China to have direct transactions with clients.
When you choose a location for your Chinese office, market and local policies and regulations are both important. China opens up several free trading zones in Shanghai, Guangdong, Tianjin and Hubei etc. In these free trading zones, you could benefit from favorable policies in tax and currency exchanges. Besides, there are a number of Bio-Med parks providing supportive services for new companies entering the country, such as discounts in office rental fees etc.
Being mindful of the above points, it is always worthwhile setting up an office in China if you have a long-term business plan in this active market. However, there could be a lot of tedious work if you are not familiar with the local environment and policies. As the local employee in China, I am always pleased to provide consultancy service for you and even engage in detailed work of your plan in setting up the new office in China.
I will post another blog talking about choosing an online promotion platform to Chinese customers soon.