Are you looking for Current Business Opportunities In China? Read through for business opportunities in china for foreigners. You will also find opportunities in doing business in china in the post.
The new US president is talking tough on trade, but global companies with operations in China may want to avoid reacting too quickly to the rhetoric. We’re fairly optimistic on US-China trade in the short run. In the long run, we expect to see a renegotiation of trade terms between the US and China rather than the sharp rise in trade barriers that some businesses fear.
The economic conditions of both countries suggest the potential for strong trade flows. In the US, short-term interest rates are rising, but long-term rates are likely to stay low—and wage rates are improving. All of that should support the housing market and consumer spending, which in turn support US-China trade. Meanwhile, China is reforming its state-owned enterprises in ways that should help level the playing field for foreign firms.
business opportunities in china for foreigners
Current Business Opportunities In China
The new US administration may be using its tough talk to gain leverage as it renegotiates the terms of trade. It would certainly help US companies if China reduced market barriers in areas where we export successfully. Those areas include agriculture, autos, service-based enterprises and other high-end manufactured goods. But raising barriers in areas where we’re no longer cost-competitive—like basic consumer goods—will only increase prices for American consumers and potentially damage the US businesses that serve those consumers. And the Chinese have pledged to retaliate by raising market barriers on us.
How should global companies respond to all of this tough talk? Even before President Trump was elected, higher labor costs in China were prompting Western firms to diversify their manufacturing base to other countries. But the reality is no country in the world can produce goods at the scale and scope of China. Instead of leaving, many global companies are moving from China’s pricey coastal regions to the inland, where wages are lower. And China still has a massive and growing consumer market.
Study after study has found that trade improves productivity, reduces consumer prices and boosts corporate profits. It has improved the quality of life for millions of people. And as trade flows constrict, the negative effects are powerful. The US and China need each other too much, which is why we’re optimistic that nothing cataclysmic is going to happen.
If the goal of protectionism is to bring back manufacturing employment, then it may not have the intended effect. Technological change—not trade—has been the main cause of job losses in manufacturing. Data from the Federal Reserve show that real US manufacturing output has nearly doubled since 1987, even as manufacturing employment declined by almost one-third.1
While technology has cost jobs in some sectors, it also promises to be the major engine of growth for the US economy going forward. There are multiple ways to help ensure that the gains from trade and technology are broadly distributed throughout the population. Protectionism is not one of them.
China Is Yours to Win (or Lose)
Richard Cant, Director for North America, Dezan Shira & Associates, a consultancy for foreign companies doing business in Asia
You may hear stories about foreign companies pulling out of China because of problems with the Chinese government or some other external problem. But these stories don’t paint a full picture. The opportunities in China are vast, but winning isn’t easy. And the most common reason that foreign companies fail is that they didn’t approach the market correctly.
China is among the most competitive markets in the world. You’ve got domestic firms competing with foreign firms from all over the globe. And Western companies do not have a level playing field. They’re held to a much higher standard for compliance in regulatory areas such as human resources, the tax code and antitrust. Many Chinese companies get something of a free pass in these areas.“Too many Western companies think they can simply take their business model from their home countries and force it onto the Chinese market.” — Richard Cant
Western companies in China also face the same economic challenges that Chinese firms do, like rising labor costs and difficulty raising capital. But while competition and regulation are increasing, surveys show that foreign companies in China continue to be very confident of making a profit there. And for good reason: China offers many promising long-term opportunities.
Yes, China’s economic growth is no longer as exponential as it once was. But the country is seeing improved living conditions, a growing middle class, a consumer revolution, significant infrastructure spending and continued urbanization. Sustained growth of even 5 to 6 percent a year is still a very attractive proposition if you can get your market right, your niche right and your marketing right.
China’s transition to a service-based economy presents tremendous opportunity for Western firms. This is an area that Western companies do particularly well. They have a 40-year head start on China, which is really just launching its service economy. Until recently, China had shut out non-Chinese service companies entirely. But they’re starting to open up in areas like education, pharmaceuticals, insurance, financial services, professional services, entertainment and health-care systems and delivery.
opportunities in doing business in china
BEST SITES LIKE ALIEXPRESS FOR ONLINE SHOPPING
AliExpress is a massively popular Chinese online retail service owned by Alibaba Group. It was launched in 2010 and hasn’t stopped its journey to becoming the ‘biggest online marketplace of the world‘ ever-since. AliExpress stands toe-to-toe even with Amazon in terms of buyers worldwide. It offers wholesale goods at direct-to-consumer prices from Chinese sellers.
It also works as a great dropshipping model for a lot of e-commerce entrepreneurs. Along with a lot of good sides, AliExpress has some cons as well. The biggest problem is the shipping time of AliExpress orders, which is pretty long considering the goods come from China. Also, some orders can be very expensive after shipping charges and taxes.
So, it is a good thing to have some AliExpress alternatives whenever you don’t like its services. That’s why we are telling you about 21 best sites like AliExpress. Some of these websites offer cheaper prices and faster shipping on certain products. And, you can also use them to maintain a nice profit margin for your dropshipping business.
LightInTheBox is the perfect AliExpress alternative as it is also a Chinese e-Store. It sells hot and trending products across the globe. Their products range from phone and electronics to fashion, jewelry, shoes, bags, and many other items. You can find almost anything here at a very cheap price.
The delivery time of LightInTheBox is also similar to AliExpress as their warehouses are located only in China. But, you may get a faster shipping time due to having fewer orders to ship. You can pay for your orders with PayPal, Western Union, or your credit card.
Wish is a widely popular online marketplace where you can buy almost anything. From clothing to footwear, electronics, healthcare items, and many more things, you can get them all for an incredibly cheap price. They are also known to offer great deals and coupons to their new customers.
Their shipping time is also faster than AliExpress as their products come from sellers located in small countries. Wish also provides an advanced rating system that is very helpful for both the consumers as well as sellers. It helps promote good ones.
Overstock is a US-based online marketplace. It makes profit by selling wholesale products at a highly cheap price tag. A major portion of their stock is comprised of overstock from the major retailers or their seconds. You can find some really amusing deals here. The shipping time will also be lower as compared to the Chinese marketplaces. You can get your items within a week.
The product range of Overstock is incredible. You can find everything such as clothing, decor, kitchen appliances, and many more items. You can even find furniture and other big home items. So, you can use to fill your house with great stuff at a reduced price.
DealeXtreme, more popularly known as DX, is an amazing online marketplace. The website works in a very similar manner as ‘Wish’ and sells cheap products coming directly from sellers. It has partnered with many small businesses and sells its products to a wide base of audience.
The shipping time is a problem with DX also because their warehouses are located in China. Apart from this, you can get some really worthy deals on DX. You should always keep an eye on their clearance sales for the best prices.
Gearbest is the perfect AliExpress alternative if you are looking to shop for the latest gadgets or electronic devices. It works with over 5000 Chinese brands and top suppliers to deliver the best products. It has products from top Chinese companies such as Xiaomi, Huawei, Lenovo, and many others. But, it isn’t just an electronic store.
You can also find a massive range of other products as well. The prices available on GearBest are reduced, and you can even reduce them with the available coupons. They also have warehouses in multiple countries. So, you can get faster shipping from the local warehouse.
BangGood is another Chinese e-commerce platform that provides worldwide shipping of cheap goods. You can find almost anything on this website, from clothing to electronics, and even home items. The prices available are marked down from their original prices. You can also get amazing deals during special clearance sales.
BangGood provides a free $20 coupon to every new user. The shipping time for BangGood orders is faster than AliExpress for certain products. However, the regular shipping time is similar.
ChinaBrands is a widely popular Chinese e-Store where you can buy products at wholesale prices. You can find almost anything on this website at a highly affordable price. Their shipping prices are also low but you will get a long shipping time. It is the perfect website for buyers who want the lowest prices but can wait for their orders for at least a month.
Most of the ChinaBrands sellers run their factories from China, and their warehouses are located there only. This is the reason for the considerably long shipping time.
Bonanza is a unique American online marketplace where you can find a great range of products. They have over 20 million items from more than 50,000 sellers. It is a growing e-commerce store where even you can sell your items. It is a preferred platform by more than 20,000 entrepreneurial sellers. You can find some really amazing handcrafted items and collectibles here.
For people looking to shop regular items, this store may disappoint you a little. The prices of some items may be a little higher than some Chinese stores. But, the quality provided will be worth it.
21 ALIEXPRESS ALTERNATIVE STORES
Here are 21 AliExpress Alternatives that you can use to shop online.
- DealXtreme (DX)
- American Greenwood
AliExpress is amazing but it is always good to have options when you are shopping. So, these are the 21 best sites like AliExpress. If you ever feel like you should look somewhere else, these are some stores that you should visit. You can also use these for your dropshipping business if you are an aspiring entrepreneur. Make sure you have a solid plan before beginning.