China is one of the global economic leaders and an investment paradise for entrepreneurs. As the country continues opening its market to global trade, it has transitioned from the traditional agri-dependent into a tech-driven economy. So, if you want to run your business in China, it has all the ingredients needed for growth, from a large population to supportive administration.
To take advantage of this high-potential economy, you need to start by identifying the right business opportunities. This post will tell about the main industries with huge potential for growth in the coming decade.
If you are an entrepreneur looking forward to investing in China, take a closer look, and you will realize that the jurisdiction comes with many benefits. The most notable is the world-class infrastructure.
From its road network to port facilities, China has the best that you can expect. This means that cargo clearing, transport of raw materials & finished products, and marketing activities is easier in China than in other countries.
Other benefits of opening a company in China include:
- Educated workforce.
- Strategic location in the Far East.
- A large, smart local marketing base.
- The country has signed many bilateral trade agreements that you can use to reach the international market.
- Supportive administration.
Industries With Huge Growth Potential In China
Deciding to open an offshore business is one thing, but what are the best industries. As an investor, you want a niche with good opportunities for growth, helping to guarantee a bigger market share and sustainable profit margin. So, here are some of the best industries to consider:
One of the key enablers of the growing productivity in China is the modernization of supply chains. Logistics is an area that is likely to grow even more rapidly in the coming years as companies look for more effective methods of moving raw supplies and finished products. So, you might want to target any area of the logistics, such as warehouses, cold storage, and clearing cargo.
With the large population in China, education will always be in high demand. Because a lot of Chinese willing to spend more on their children, you can invest in different areas of education, such as early childhood, primary and higher education. You might even consider offering specialized training for employees to help build their skills for higher productivity.
China is also a fast-growing tourist destination, and you can open a company in the industry to help both local and expanding international visitors. In 2017, the number of outbound tourists was 143.04 million, and you can set your business in the niche to tap the growing numbers. For example, you can run a travel agency, open a hotel targeting tourists or sell travel-related merchandise.
Register A Company In China To Run Your Business
Now that you know the most potential areas in China, the only way to access them is by registering a company in the country. This will give you the legitimacy to develop different products and market them to the targeted clients. Some of the common business formations to consider are a wholly foreign-owned enterprise, a joint venture, or a branch office.
We must say that company incorporation in China can be tiresome and lengthy. Often, some people are overwhelmed on the way, but you can make the process easier and smooth by working with an agency of experts. Agencies know how to prepare the right documents, and you can count on them to complete the process of company registration fast. The experts can also help you with bookkeeping, filing tax returns, and drawing strategies for success.
As you can see, there are many industries that you can target with your Chinese company. Indeed, the three we have presented above are only a tip of the iceberg. Other areas you might want to consider include education, manufacturing, and men’s health business. Make sure to carry comprehensive market research to be able to determine the better target market and outdo the competition.