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Before expanding your business overseas, you should learn about the culture of the country you want your business to run in. When doing business in China, you need to do this too.

China is a country with an ever-increasing GDP. Many foreigners have found business success in China, but it isn’t just one person: it takes a whole group of people to make it succeed.

Keep reading to learn more about doing business in China.

Pick a Bustling City for Starting a Business

China is a huge country geographically, but there are a few heavily-populated locations where it would be smart to start a business.

Most of these locations are larger cities. Shanghai and Beijing are the obvious ones, but you don’t want to overlook Guangzhou—a growing business hub—or other major cities.

The perk to starting a business in Shanghai is that the city has a history of foreign influence. In fact, the government encourages Shanghai to bring in the best foreign businesses and innovation to the city.

Beijing is the capital, but it is also a great option for starting a business within its borders. However, since it is the capital, the government has a tighter hold on how businesses are run compared to other cities, which offer more relaxed policies.

For Hong Kong SAR, click here for business registration.

Understand There Are Cultural Differences

If you are a Westerner or not Chinese, then you are probably aware that there are cultural differences between where you come from and Chinese culture.

One major cultural difference is the types of holidays celebrated. China follows the lunar calendar like some other Asian countries. The lunar calendar is different than the Gregorian calendar.

That said, China does use the Gregorian calendar for their day-to-day lives, such as work and school. The lunar calendar denotes holidays like Qingming Festival (Tomb-Sweeping Festival) and Spring Festival (Chinese New Year).

Because of this, the holidays change days each year since the lunar and Gregorian calendars don’t line up the same each year. In addition, it is Chinese law to “make up” holidays that you have. This means that any holiday that falls on a weekday will be made up on a weekend day shortly.

Speak and Market to Chinese Audiences

How you market in the U.S., Australia or anywhere else is not how you would market to audiences in China. Research the Chinese market and understand what Chinese values are before creating a marketing campaign for your business.

Look at how KFC and other companies have adapted their brand and offerings to a Chinese audience as a guideline. Always keep Chinese culture in mind when doing business in China.

Business Advice for Doing Business in China

It is a big step when starting a business in China. Remember that doing business in China means picking the right location, understanding there are cultural differences, and using this to market to Chinese audiences.

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