Doing business in China: 5 key strategies and expert insights
Last update: 2 Sep 2025
China presents a massive business opportunity for merchants, startups and other growing businesses in the UK and beyond. But getting started in the country can feel overwhelming. You need to consider how you’ll:
- Manage the costs of trading in onshore and offshore Chinese currency (RMB)
- Stay compliant with the Chinese legal system, including adhering to annual transfer limits, customs duties and other regulations
- Find and vet suppliers or join local marketplaces without a local presence
- Ensure your payments and payouts arrive on time
Fortunately, cross-border platforms like WorldFirst enable faster and simpler expansion into China. We make international money transfers and currency conversions faster and more affordable – and we help businesses connect with local marketplaces and suppliers.
In this article, we’ll share top tips and expert insights for doing business in China, including:
- Five key strategies for doing business in China
- How a multi-currency account can help you do business in China
- How WorldFirst makes it simpler to operate in China
- How to open a World Account
- How Party Bestbuy simplified payments to China with WorldFirst
Ready to start doing business in China in 48 hours or less? Open a World Account now.
5 key strategies for doing business in China
With its massive consumer base and tremendous manufacturing power, China is a key driver of global growth, competition and trends. Here are some key insights for navigating the challenges of doing business in this complex region:
1. Understand your specific market segment and target audience
Firstly, you may need to adapt your products and your messaging to better fit the Chinese market. Understanding these different tastes and priorities is critical to achieving business success in the region.
For example, some Jaguar Land Rover models sold in China have a longer wheelbase and larger back seats. This is because, as David Martin, Exports Directorate of the Department for Business & Trade, explains, “in China, the people who buy those cars are likely to have a driver.”
If you’re based in the UK, a good way to begin your intelligence-gathering is with organisations such as the Department for Business & Trade, individual Chambers of Commerce or the China-Britain Business Council.
But given its sheer size – and with so much diversity – you can’t approach the country as a monolith. China is hugely diverse; the landscape, culture and people look different from Shanghai to Beijing to Guangdong.
“You have to look beyond the newspaper headlines,” says Martin. “With a country of 1.4 billion people, a single figure for GDP is almost meaningless.”
Instead, gather detailed, specific intelligence about each market segment relevant to your business, including:
- Customer preference: Understand what local buyers value when it comes to product design, features, pricing and branding, and how each of these vary by region
- Competitive landscapes: Identify local and international competitors, and assess their market share, strategies and any unique advantages
- Supply chains: Map out sourcing, production and distribution networks. Take note of potential risks, bottlenecks and opportunities for efficiency
- Regulatory environments: Research national and regional regulations, compliance requirements and especially trade policies that could impact your operations
2. Source suppliers using local partners and networks
If you’re selling goods into China or sourcing products from the country, it can be useful to build relationships with local Chinese suppliers and manufacturers. Carefully choosing and getting to know your local suppliers can lead to lower pricing, higher quality products, shorter lead times and leverage to negotiate rates.
Most businesses use one of the following methods:
- Hire a Chinese sourcing agent or sourcing company who can find and communicate with suppliers for you. This is a good option for businesses with more to spend and the time to carefully vet for trustworthy agents
- Travel to China and attend trade shows to discover reputable suppliers in person, often with the help of an interpreter or translator. While still costly, this may be more affordable than hiring sourcing agents, and gives your own team members the opportunity to test products and meet suppliers
- Match with local suppliers on Chinese wholesale platforms. Joining local supplier networks like 1688.com can open up access to millions of suppliers. Just be sure to order small sample MOQs to vet suppliers and products
Regardless of how you source products, however, it’s critical to apply the same scrutiny and due diligence that you would in your home market.
“Don’t believe the unlikely,” says Martin. “Because of the scale of the opportunity, it can be tempting, but show the kind of acumen you would when dealing with people at home.”
Read more: How to source products for e-commerce: A practical guide for scaling brands
3. Hone your cultural awareness and hire talent with deeper insight
“No matter how much research you do or how many times you visit,” says Shaun Pulfrey, founder and former CEO of Tangle Teazer, “You will not understand China’s market like the Chinese.”
Chinese cultural norms are quite different from those in the West, and you’ll need to be aware of certain common communication challenges.
A few key cultural differences to be aware of:
- Communication tends to be less direct, and you may need to read between the lines (i.e. “maybe” might mean “no”)
- Criticising or confronting business partners is taboo, especially in front of others. It’s also important to avoid interrupting when someone else is speaking
- Meetings may feel more formal and hierarchal, with more emphasis on punctuality, formal dress and deference to elder team members or those with more authority
- Chinese culture values trust and long-lasting relationships, and solid business connections often become social as well as professional
Before meeting with potential partners and suppliers, familiarise yourself and your team with Chinese cultural norms and expectations around business etiquette. It may make sense to spend some time in China so you can get a sense of those norms firsthand. This cultural knowledge not only builds trust, credibility and negotiation leverage; it also helps you adapt your products and refine your messaging.
You also gain deeper cultural insights by hiring talent with local expertise, including bilingual Chinese employees with a nuanced cultural understanding, experts who specialise in doing business in China or student interns who know the local tech landscape.
Why is insider knowledge of local tech so important? Because in China, superapps like WeChat are integral to everyday life. They’re used for everything from making medical appointments to buying produce at street market stalls. Understanding the nuances of these apps can help you avoid embarrassing cultural missteps, mistranslations and messaging that doesn’t resonate.
4. Align your digital infrastructure with Chinese systems and technology
The Chinese government restricts access to many of the platforms commonly used by foreign companies. Your Chinese partners and suppliers may not be able to communicate via banned platforms like Instagram, WhatsApp, Google services and Slack.
And, even if a given app or platform is permitted, Chinese users may have different preferences or struggle with language barriers. Accordingly, you may need to download and learn to use Chinese apps.
Here are some of the most popular platforms:
Common apps and software platforms for doing business in China
| App | Functions | Sample use cases | Accessible in the UK? |
|---|---|---|---|
| Messaging, social feed, voice/video calls, payments, mini-programs (sub-apps within WeChat for booking tickets, ordering food, etc. | Customer communication, brand channels, mini-program commerce, customer service | Yes | |
| WeCom (WeChat Work) | Enterprise chat, meetings, docs, customer service integration with WeChat | Internal team comms, external service accounts, client support | Yes |
| DingTalk | Team messaging, video calls, live streaming, project management tools, low-code application building, calendar synchronisation | Managing China-based teams, vendor coordination, training | Yes |
| Lark (Feishu) | Messaging, video meetings and live webinars, docs, calendar, project management | Cross-border document collaboration, meetings, trainings, project management | Yes |
| Messaging, voice/video calls, file transfer | Legacy supplier/customer communication, file exchange | Yes | |
| VooV Meeting | Video conferencing, , livestreaming, collaborative whiteboarding | Virtual meetings with China-based partners, document collaboration or brainstorming | Yes |
| Social media / microblogging | Brand marketing, public announcements, influencer campaigns | Yes | |
| Xiaohongshu (RED) | Social media, lifestyle content, e-commerce | Influencer marketing, product discovery, brand storytelling | Yes |
| Douyin | Short-form video (China-only version of TikTok) | Social commerce, product advertising for China market | Requires a workaround with some devices |
| Alipay | Mobile payments, mini-programs including. ticket booking and taxi hailing | Accepting payments from Chinese customers/tourists, running mini-program stores | Yes, but certain features may be limited |
5. Get an easier way to pay your Chinese suppliers and partners
One of the biggest challenges of doing business in China is that payments work very differently. Your Chinese partners may pay with apps like WeChat or Alipay, and may not have a way to accept your local currency or preferred payment methods.
Business in China is also complicated by the fact that the country uses a dual-currency system. In China, businesses pay and receive payments in CNY or onshore renminbi, while abroad, Chinese businesses and their associates can only trade in CNH or offshore renminbi.
This system can result in extra unnecessary currency conversion charges, slower payments and other complications. For this reason, most businesses trading in China should use a multi-currency account to make payments to China.
Read more about China’s dual currency system: Why does China have two currencies?
How a multi-currency account can help you do business in China
A multi-currency business account enables businesses to receive, hold, pay and transfer funds in multiple currencies. With a multi-currency account, a business can trade in GBP, EUR, USD, CAD, CNH, SGD, AUD and many other currencies.
For instance, if an account holder based in the UK wants to expand into China, they can hold funds in both GBP and CNH. With a single multi-currency account, they can pay suppliers in mainland China, receive and convert payments into GBP and connect to Chinese marketplaces to access faster payouts or discover more affordable wholesale products.
- Open 20+ local currency accounts and get paid like a local
- Pay suppliers, partners and staff worldwide in 100+ currencies
- Collect payments for free from 130+ marketplaces and payment gateways, including Amazon, Etsy, PayPal and Shopify
- Save with competitive exchange rates on currency conversions and transfers
- Lock in exchange rates for up to 24 months for cash flow certainty
How WorldFirst makes it simpler to operate in China
WorldFirst is a cross-border payments platform and multi-currency account that enables simpler payments to and from China. With a single World Account, you can make fast, affordable payments in local currency and receive faster payouts from partners and marketplaces in China.
Here are just some of the ways WorldFirst empowers UK businesses to simplify trade with China:
Pay suppliers in mainland China faster, for less
Paying Chinese suppliers can be slow and expensive using traditional methods like bank wires, taking up to five days. WorldFirst makes it faster and more affordable to send funds to China by letting you:
- Send payments to mainland Chinese bank accounts in CNH right from your World Account dashboard (we handle the compliance and regulatory requirements)
- Use local payment rails instead of SWIFT, for fewer intermediaries, faster transfer times and lower fees
- Avoid getting hit with multiple conversion fees by paying in suppliers’ local currency
Aside from Chinese business payments, you can also pay to 210+ destinations in 100+ currencies, all from your dashboard. Most payments land on the same day or next working day, or you can pay other World Account holders instantly, for free.
Learn more: How to pay international suppliers: 6 methods
Discover and pay suppliers through local wholesale platforms
With WorldFirst, you can source suppliers the way locals do, through 1688.com, China’s leading online wholesale platform. WorldFirst’s exclusive integration with 1688.com enables direct access to 10 million registered suppliers across 1,700 categories, with prices up to 40% lower than other platforms.
Prior to this integration, access to 1688.com was only accessible to international users through complex workarounds. But with WorldFirst, you can pay 1688.com suppliers instantly, in Chinese currency, right from your World Account dashboard.
Learn more: How to source wholesale using 1688.com outside China
Get local Chinese account details and join popular marketplaces
With your World Account, it’s free to receive and hold funds in 20+ currencies, including CNH, and you get local account details for each currency. Pay and get paid faster using local payment rails and join popular Chinese marketplaces and platforms that require a local bank account.
WorldFirst also connects you directly to 130+ marketplaces and payment gateways, including popular Chinese marketplaces like:
- JD.com
- Shein
- TMall
- Vipshop
That means you can get your payouts faster and consistently deliver on-time payments to Chinese suppliers.
Use your virtual World Card to pay in CNH with no FX fees
WorldFirst lets you pay suppliers, vendors and partners anywhere Mastercard is accepted. When you open a World Account, you can get up to 25 virtual World Cards for free, which you can use to pay in 15 currencies including CNH, with no foreign exchange fees when using your existing balances.
With your World Card, you can also earn up to 1.2% cashback on all business expenses to reinvest in your business. And you can even connect your World Card to Alipay or Alipay+ to make in-person payments when you travel to China.
Read more: How a multi-currency virtual card helps your business grow
How to open a World Account
Ready to open a World Account for simpler payments to and from China? Here’s how to get started:
- Navigate to the Sign up page
- Enter your personal and business details
- Share your verification documents
- Set up your World Account requirements
- Connect with Chinese partners to send and receive payments faster
Note: Need some assistance? See the official Help Centre guide for more info on setting up your account.
How Party Bestbuy simplified payments to China with WorldFirst
Party Bestbuy is an Australian company specialising in party supplies like wedding and birthday decoration. Its founder, Rocky Yan, had been sourcing from 1688.com because it gave him access to millions of Chinese suppliers and ultra-low prices.
Unfortunately, before WorldFirst’s direct integration with 1688.com, it was taking days for Rocky’s supplier payments to arrive. That meant his inventory was often delayed, threatening his relationships with suppliers.
Rocky partnered with WorldFirst so that his company could make faster, simpler payments to Chinese suppliers. With WorldFirst, he is able to procure inventory faster, avoid cash flow gaps and maintain positive, long-lasting relationships.
Ready to simplify your China strategy?
Whether you’re selling into China, sourcing products or both, WorldFirst makes it easier to do international business. With a World Account, you can:
- Pay suppliers without hidden fees
- Use local payment networks for faster, more affordable transfers
- Get local account details to join Chinese marketplaces
- Access and pay millions of suppliers, instantly
Apply and get approved in as little as 48 hours when you open a World Account now.
Frequently asked questions
What’s the best location to base a foreign business in China?
Popular cities, municipalities and provinces for foreign businesses include Shanghai for its finance and trade hubs, Beijing for government access and tech, and Hong Kong for its low taxes, common law system and gateway role to mainland China.
Other cities like Shenzhen, Guangzhou and Chengdu offer strong manufacturing bases, supply chains and growing innovation sectors. And China is investing in the economic growth of cities like Tianjin and Chongqing, to turn them into international shopping destinations.
What regulations or laws do I need to know about in order to do business in China?
Key areas of Chinese law include the Foreign Investment Law, intellectual property protection (trademarks, patents, copyrights), e-commerce and data privacy rules, tariffs and customs duties. Plus, there are sector-specific regulations such as those governing financial services or manufacturing, as well as China’s consumption tax.
Compliance with labour laws, work permits, anti-corruption measures and local licensing requirements is also essential.
What taxes do I have to pay to do business with China?
Foreign businesses in China may be subject to corporate income tax, value-added tax (VAT) and various customs duties. Employers and employees must contribute to social security and housing funds, while foreign employees are generally liable for individual income tax on China-sourced earnings. The exact rates and obligations vary by region and business structure.
What documentation do I need to do business in China?
To operate legally in China, foreign investors typically need to provide documents such as the Articles of Association for the business, proof of identity and incorporation for all foreign investors and a detailed business licence application.
Depending on your sector and business structure, you may also need capital verification reports, lease agreements for your registered office and any industry-specific permits or approvals required by Chinese authorities.
Do I need insurance to do business in China?
Employers in China are typically required to contribute to social insurance schemes for their employees, which may include pension, medical, unemployment, work injury and maternity insurance. You may also need commercial insurance to cover business risks, protect assets and comply with any industry-specific requirements.
What is a foreign-invested enterprise (FIE) in China?
A foreign-invested enterprise (FIE) is a business registered in China that is wholly or partly owned by foreign investors. Common FIE structures include wholly foreign-owned enterprises (WFOEs), equity joint ventures (EJVs) and co-operative joint ventures (CJVs).
FIEs must comply with China’s Foreign Investment Law, register with the relevant authorities and meet specific requirements for capital contributions, reporting and licensing.
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