Business opportunities in the Chinese market

Sep 19, 2022CCBC Insights

By Lotta Ygartua - Regional Director, Western Canada, CCBC

As Canadian innovation and technology advances, Canadian businesses and organizations ready to look at international markets need to know where the opportunities are and how to leverage them. Demand for clean technology and environmental sustainability remains strong in the Chinese market.

Business opportunities in China

China’s Five-Year Plan (FYP) is a national strategy set by the country’s top leaders. It sets out policies for social development and economic growth, identifies promising areas for investment, and indicates where governmental resources will be concentrated. Indicating major realignments in China’s management of its economy, the 14th Five-Year Plan (2021-2025) provides a clear-cut view of where China is going and a roadmap to how Canadian companies can leverage it. As outlined in the China’s 14th Five-Year Plan: Impact and Opportunities report, “Cleantech will prosper on the back of increased emphasis on environmental sustainability.”

About the Canada China Business Council

The Canada China Business Council (CCBC) is a truly bilateral non-profit, membership-based organization with seven offices in both Canada and China. Founded in 1978, we have been the leading voice of Canada-China businesses for over 40 years and provide the knowledge and connections you need to succeed in China and Canada. The CCBC team and board of directors’ cumulative corporate experience in China, and their personal and business networks among China and Canada’s most senior government and business leaders, is unparalleled.

Some CHFCA members will be familiar with David Fung, Vice-Chair, CCBC, who has been leading a Global Affairs Canada roundtable on clean technology. See below for more details on how we can assist you.

How can I prepare myself to do business with China?

Join CCBC’s online China Ready Webinar Series this fall. The series consists of six webinars between September to November. These are designed for those considering China for trade diversification or are curious but not sure where to start. The modules in this series cover a range of topics related to doing business in China and the first session on export to China took place on September 14. Below is the complete schedule (click the session title to register):

Session #1: Exporting to China – How to Ensure a Smooth and Consistent Experience, September 14  
Session #2: The E-commerce Revolution – Get Your Product into the World’s Largest Consumer Market, September 21
Session #3: Marketing Your Brand Successfully in China, October 5
Session #4: Manage Legal Risks and Improve Your Prospects for Early Success in China, October 19
Session #5: Guanxi (关系) – Building Social Networks for Better Business, November 2  
Session #6: Find the Right Business and Sourcing Partners in China and Asia, November 17

Can I travel to China?

Yes, it’s possible although quarantine requirements are onerous and change frequently. Restrictions aren’t expected to change until China’s 20th Party Congress in October 2022, after which we are hopeful that travel restrictions will liberalize. For specific advice, contact Lotta Ygartua, Regional Director, Western Canada, CCBC.

How can I still do business with China if I’m not there physically?

CCBC’s ChinaPROXY service is designed to help the Canada-China business community maintain “business as usual” without the need for your physical presence in China. Flexible and practical solutions, specifically tailored to meet the needs of your business quickly and at low cost, include:

CCBC China staff attending conferences, meetings, audits, etc., in China on behalf of your company, and reporting on the results.
China-based factory visits with photos, body cams, video calls, etc., to offer peace of mind when manufacturing or sourcing.
Supplier visits, sample examination, logistical confirmations, “try before you buy.”
Customer meetings to demonstrate product quality of Canadian exports.

Need more presence, company expertise, and market access?

For companies seeking a full-time representative on-the-ground in China, CCBC can further support by identifying and hiring a local staff member, anywhere in China, to work exclusively on your organization’s behalf. Recent surveys show that companies with presence in China (personnel or operations) are more profitable and more optimistic about their business. Our HR service acts as a low-pressure first step in establishing a presence.

Easy entry and exit in and out of China – We handle all taxation, social security contributions, etc., so that no Chinese legal entity is required.
HR and administrative services – CCBC can make payroll arrangements domestically in China while all fees for services can be settled in Canada through CCBC’s Canadian offices. For companies seeking a full-time representative on-the-ground in China, CCBC can further support you by identifying and hiring a local staff member, anywhere in China, to work exclusively on your organization’s behalf. Interact and maintain business with the China market while travel restrictions remain in force for the immediate term.

Reality check – What is it like to do business with China?

The position of foreign companies in China has become more complicated. While the 14th FYP calls for greater opening to foreign investment and business activity, increased emphasis on economic security and rising geopolitical tensions mean that foreign firms will need to tread carefully. If you are aligned with these goals, entry and expansion by foreign companies is welcomed.

Ready to learn more? Contact the Canada China Business Council

Please speak to Lotta Ygartua – Regional Director, Western Canada, CCBC, at (604) 681-8838 or lotta@ccbc.com to learn more. CCBC provides advice, networking opportunities, and insights as part of our wider membership and business services. More details can be found at www.ccbc.com.