The Options to Start a Business in China

The Options to Start a Business in China

Are you, as a company or enterprise, considering whether to start a business in China? That is a good idea that might result in colossal profitability in the future. Indeed, you will get quite a few options to pick from. Let us consider a few business ideas that can start you off to a journey of grand achievements in the future. Remember that, China is a vast nation with a population of more than one billion people. The markets are therefore pretty huge! So, what are some of these commercially viable alternatives that can change the fortunes of a business?

The first option is in the field of learning. Can you imagine a billion people who are thirsty and need to quench their thirst for knowledge? Yes, you can decide to become an education provider. Many opportunities actually exist for educators. This is even though Chinese Universities exercise strict control over U.S-type education that is offered in the country. Some great opportunities also exist for foreign teachers in the management, vocational, and language schools in the country. You might, however, need to create a partnership with a citizen of China because you must acquire a licensing authority given by the Ministry of Education. This is prescribed by law and necessary for people who want to engage in educating Chinese nationals.


The other business to consider involves becoming a winemaker. Indeed, many Winemakers from such distant ends of the earth as Washington and Oregon States of the US are already making good progress in the Chinese wine industry. There are plenty of openings for foreign wineries and spirits industry that anyone could exploit to his advantage. There are things you must do succeed in such an endeavor. For one, you must keep yourself aware of the local tastes and industry price points. You may decide to import processed food. There is an existing large market, providing openings for small businesses, that an enterprising business can thrive on.

There is another important factor that impacts on business here: Millions of people in China have progressively moved to the nation's towns and cities, driven by the desire for convenience and enjoyment of the 21st-century lifestyle. This has had an impact on the type of food they consume. Most of the population also need things like more professional jobs. In the end, all this has created a need for food and household products, dictating industry, and business dynamics.

Construction and Medicine

China runs one of the world's most vibrant construction industries. The country is also a key player in the solar industry. Moreover, it institutes a rigid industry-standard to control this business and create the right environment for investors. The country has plans to boost long-lasting, eco-friendly structures. This has gradually created a significant need for manufacturers dealing with renewable energy and associated items from green buildings.

Yes, there is also a highly lucrative market existing in China for high-tech medical providers from other countries. The nation's aging population, together with the reforms instituted in health care, has birthed and ensured that this niche thrives. Admittedly, Western service providers will generally face challenges like obtaining state registration for commercial products, pricing, and factors like intellectual property registration. Do you wish to get comprehensive advance information on these kinds of investment in China? You are quite fortunate. The US Commercial Service provides the perfect source for this kind of information, going beyond the basics to give contacts and every other vital information to help you make wise decisions.

China will top the World

Pundits predict that the great nation of China will be the world's number one economy, ahead of the US and other top industrial nations, in just ten years coming. Yes, China will be the top industrial state, controlling the largest economy in the world! Many businesses already consider the Chinese economy and industry as the beacon of stability and prosperity for the world's future. The nation's tradition and culture will be vastly new to a foreigner, and this means you must be prepared to survive in a highly bureaucratic environment. China may be described as an established cultural enterprise that has maintained its rich tradition for centuries.There is, therefore, little room for any entrepreneur displaying what may be called 'a cowboy attitude'. Any business will fail if it tries to operate by its own rules. Yes, it is difficult to change any centuries-old traditional practices, regardless of where you are in the world. China is no exception.

How Well is Chinese Insurance Working

How Well is Chinese Insurance Working

The Chinese insurance sector is currently roaring and bustling. Overall, it emits a feeling akin to swimming in a refreshing pool on a hot afternoon! What is more, the insurance business is fast persuading hordes of fresh consumers, investors, and firms, especially by reinforcing excellent security and cash. What is behind the runaway success of the booming Chinese insurance? No big secret. It has a lot to do with a new, summerlike, business environment that is strongly supported by the Beijing government. Happily, things have become even easier for insurance companies. They now provide consumers with all types of services.

In 2012, the Chinese Insurance Regulatory Commission arranged for a policy that pushes for vast simplification of business. This helped most insurance firms to expand, profiting well from investments in a variety of financial services, bonds and stocks.

How have many Chinese life insurance companies performed in this bustling environment? In times past, the firms did not have many issues with liquidity. Why? The debts they dealt with were mainly long term. As time went by, however, the short term liabilities gradually placed most companies at a higher risk.

Risk Factors

Speaking about business opportunities, the risks were soon absorbed in the booming insurance environment. According to a reliable industry authority, up to the end of February 2018, the Chinese Insurance Regulatory Commission has been busy processing applications from more than a hundred and thirty new companies that wish to establish their business by selling insurance bonds.More recently, officials of the CIRC, in a meeting convened to guide the Chinese insurance firms, made a most interesting declaration. The authorities revealed that most of the shareholders were clandestinely using insurers to gain funds for anonymous firms secretly. The range of the funds involved was generally undisclosed.

This was a truly startling revelation that exposed the soft underbelly of the Chinese insurance sector. Moreover, this pointed government statement served as a subtle warning to firms that would not toe the line to be aware that a notice had been served. It was not left to doubt that the government is keenly aware of the activities of these firms and would act when necessary. Further, the situation catalyzed a groundbreaking spirit, since most new insurance firms have come up only in recent years. Indeed, since February, more than a hundred new companies sought operating business license from the government.


The simplification of business, as well as its steady rise, has been the trademark of Mr. Xiang, the current CIRC chairman's tenure. His tenure at the helm of the CIRC began in 2011. Since then, he has capably steered impressive commercial improvements in the areas of firm policy, insurer fund investments, and policy premium rates. On February 22nd, there was a fascinating interview done with Caixin touching on matters to do with Chinese insurance. Xiang, for his part, has been aware that the climate of reform in China is progressively evolving, becoming ever sophisticated, owing to the recent economic downturn. This financial meltdown has been spreading rapidly through China, particularly since 2014.

Interestingly, regarding the risks for the Chinese economy, Xiang humbly admitted that there are quite a few risks involved. He said that, as the economic meltdown gains ground, some sectors, like that of the insurance rapidly expand, impacting on assets, investments, companies, and clients. This is paradoxical since the other branches of the economy are affected negatively by the slightest signs of economic downturn or slowdown. Xiang is, however, quite confident that the state regulatory machination is the right way to go for China, especially because it won enthusiastic support from the Beijing government officers, at the highest level. No wonder, it was only a question of time before he took the pivotal post and job as the CIRC chairman.

Insurance Boom

Information emanating from Ministry officials in the central government indicated that the main task for the insurance sector has always been to open up the space for new insurance fund investments. This is in accordance with the statement released by Xiang. He also said that the industry faces different hurdles and probabilities too.

Caution must, however, be exercised as the watchword for most newbies in Chinese business. How? Having discovered an opportunity for earning, there are several other factors to consider. These include short term, non-conventional insurance plants. Such plans give ample coverage for some three months, at most.

Investors - Get to Know the Chinese Stock Market

Investors - Get to Know the Chinese Stock Market

Like many investors, have you recently followed the financial markets closely? If so, you must be acquainted with the big stories making the world headlines. Last year, for instance, the stock markets in China were doing quite well. Everyone was excited. Indeed, by June 2018, the Shanghai Composite stood at the peak of 5,178. The big boom was genuinely remarkable. It rose by a whopping 135% each year! There was a picture of optimism everywhere. Curiously, around the same time when things seemed so positive, the Chinese economic growth expectation was vague. It was running amok. The big banks had an alarming rise on Nonperforming loans. Profitability in the corporate sector was also hindered. Experts discerned that China's declining GDP growth was too dependent on the rapid credit growth. Things seemed dark and bleak.

Black Tuesday

Even though the market peaks happened in June, just the next month, in July, panic suddenly gripped investors. Things came to a head on July 7th. To date, this day is called 'the Black Tuesday'. At this time, the market lost a third of its value. The action had to be taken without delay. The regime in Beijing swung into action. The government introduced a series of measures carefully calculated to deal conclusively with the startling economic decline. In late June 2018, State intervention measures peaked. The aim was to stop the steady decline in its tracks. Unfortunately, in the fullness of time, all these steps failed to achieve the intended effect.

Fall of a Giant?

By July, there was a feeling of desperation, despondency and utter hopelessness among many investors. Meanwhile, the regulators strove to bring in new extra measures to try and steady the sinking ship. The fall of the giant world economic empire, at some point, seemed imminent. Indeed, it seemed like it was only a matter of time before the sky caved in. As the sages put it, however, behind every cloud is a silver lining. Even when everything seemed dire, it came to pass that all was not lost. On July 9th the markets experienced the much-needed respite. In just a single day, that July 9th, the markets in Shanghai closed up 5.8%. There was a sigh of relief. Things were getting better, in the end. The stock market panic gradually subsided.

Soap Opera

Things seemed to get even better the next Friday and Monday. The market experienced considerable gains. But on Tuesday the jitters returned in the market again. There was an unexpected decline of 3.0 %. Hearts throbbed still with uncertainty. There was even more drama, in soap opera fashion, in the following three days. The stock market rose dramatically, triggering widespread nervousness. The panic eventually ended when everything stabilized. The problem is that the major questions that arose in the heights of the stock market drama have never been fully addressed. Because of this lurking uncertainty, there is still a certain degree of volatility.


Indeed, pundits think that the Chinese stock markets are still overvalued. The volatility and instability factors may still haunt the market in the future. The trends cannot be tamed. Today, there is a fierce debate touching on the economic reforms of China. In question are Beijing's capabilities and competence with regards to the cost of steering the economic adjustment. One of these costs is the volatility factor. For these reasons, the policy responses and panic remain very much in place. The big debate about the future of the Chinese economy is also quite alive.

Volatility Factor

Certainly, if the economy is rebalanced and regular state control over the various facets of the economy were withdrawn, this would greatly reduce the Beijing government's ability to manage the economy smoothly, at least in the short term.

It would especially be true with regards to the overall financial system. Interestingly, such a wide-reaching measure may still be viable, necessary, and even desirable, to forestall a dangerous long term surge in market volatility.

Volatility is, however, not the only factor in question. Regardless, who can afford to shove volatility entirely out of the equation when discussing such crucial matters? In one thought, volatility may be suppressed only by increasing control. In another school of thought, what is required is a temporary suppression soon, to forestall disruptive adjustment.

It is quite significant that, whenever the question of monetary volatility arises, the central banks can always decide on the appropriate mode of control that does not upset the economic status quo. Time will tell what finally happens in the future.

Vulnerabilities of China

Vulnerabilities of China

The World Health Organization (WHO) 6 Feb 2020 Situation Report showing less than 2% fatality rate out of the 28276 globally confirmed cases, so is the coronavirus panic really justified. There are many more deadly virus that don't get the media hype. With the recent coronavirus panic wiping off half a trillion dollars of stock market value, where are the fears and hype stemming from?

Back in January 2016 the Chinese stock market experienced a steep sell-off. It was not for one week, but the panic continued for many weeks even was noticed earlier also. The stock market collapse made many reflexive China Bulls cautious about misinterpreting implications. The experts of the bull market are very well aware of the plunging and misinterpretation but the suggestions are not in favour of particular happenings. Peter Doyle defined on the FT Alphaville blog about the markets continue declining situation from 2011-2012.

The refraining at stock market is not a destructive one situation in reality even surprising and there are will power and ammunition considerably left in Beijing whenever it's necessary. In a diplomatic sense, he discussed few reasons behind why; a worthy copy instead of persuasiveness can help in reforming. An op-ed in the Financial Times published on similar day content said by George Magnus, he defined that enormous people are still overlooking. The main reason behind driving tendency of the increasing balance sheets in a fragile way underlie the series disruptions interrelated to financial market and the serious initial was in June 2013.

The debt has risen inexorably and analysts are wasting the time without any use of the excess credit problem. The few words Magnus shared in the article were like this, Importance of economic reformation of real economy and state monopoly have stalled, or succumbed to push back and inertia. The policies are not enough to tackle the long run problems. The poor productivity with chronic overcapacity has made condition complicated as it's the fourth consecutive year where producer price deflation has taken place. The relentless accumulation of debt considered as China's most serious problem because it receives the most passive attention.

The biggest problem of China is accumulated debt and analysts say it will continue to deteriorate until the Beijing's direct addressing of debt. It will not be an issue if China shows a growth rate vary from 6% to 8%. China's long-term outlook will be worse due to its debt-ridden condition. The credit growth decelerates and there are few indications of betterment in the Chinese market. One time also came when the authorities turned turtle and went against the bulls; some critics took it as a good option for the people and economy of China. There are few views provided by analysts in which the consideration put on Beijing's misleading stock market situation of recent years. The surge in capital outflow made all far worried as RMB seen a rapid decline and misinterpretation.

The few contrary mutterings declare that Beijing's competitive devaluation plan is put in a process to strengthen the goods sector indulged in trading. The PBoC will stop interrupting in the process to allow RMB put a fundamental form of equilibrium which has not been seen till now. Beijing's authorities and analysts considered that the decline was seen due to lack of investment in domestic infrastructure and real estate business. The exports of Beijing are not weak as usually considered. The production facilities has to be put on a halt and investment is needed in grooming sectors for making a stable aspect of the bull's market. The stability of bull's market will provide a specific growth to country's GDP.

The Beijing government is putting all efforts to make the country's economy a reliable one by boosting domestic market. The authorities have generated liquidity to boost up domestic demand. The weak point noticed in this process is that liquidity inclined to expand and capital outflow but a destructing effect few economists think will occur. The destruction can be very bad for the currency value in the market. The risk is not only for China, it's a risk for the whole global economy.

The few assumptions done by analysts define that 2016 will be another bad year for the global stock market even it can turn into a worst one if not tamed on time. The preambles are unlimited; where a mass coverage of recent market update defined China has generated intractable arithmetic about demand imbalance at the global level. The main content to be discussed in the above-described views is just self- reinforcement to tackle increasing debt, capital growth and put few general reforms into implementation. The situation could be untangled and addressed but still there is a lot to reform.