Entering the market in China

Why expand to China?

China has become the second largest economy in the world, leading the way in fields such as smartphones, where it is the world’s largest smartphone market with over 700 million active users. Given its market size, purchasing power and enthusiasm for technology, China presents market opportunities that MNCs, SMEs and even start-ups cannot afford to miss.

What is to expect?

Entrepreneurship is hard enough without having to address the challenges of a new country, language, and culture. With its significant differences and culture shock, in China you need an ability to adapt fast and learn quickly if you are to succeed in China.
China is keen to invest in technology and eager to use innovative methods and to collaborate with global experts in order to tackle social and environmental problems. Investors in China are gradually becoming more sophisticated and market competition is fierce, with entrants from home and abroad.

What is the state of innovation?

China is the second largest R&D spender and the country’s enthusiasm for research and development is driven by its economic dynamism and long-term commitment to science and technology innovation. The scale of China is so big that each region has its own innovation character. Enterprise innovation has gained traction in recent years, and features incremental technology innovation and business model innovation. The rise of giant companies such as Alibaba, Tencent and Huawei illustrates the focus on innovation in the Chinese ecosystem. From a top-down perspective, China is leveraging government-led venture capital investment to help innovative firms in an effort to bolster new economic growth areas. Apart from the central government’s fiscal budget, the fund (venture capital investment) will also incorporate capital input from big companies, large financial institutions and other private sources, and targets support for emerging industries of strategic importance and start-ups keen on innovation. There are over 1300 incubators and accelerators across the country.

Is it easy to find qualified co-workers?

Over 2000 universities and colleges in China provide over 7 million graduates annually, while hundreds of thousands of graduates return from overseas each year as well. However, due to the economic prosperity and market growth momentum, the competition for talent never decreases, so talent recruitment and retention is a priority for companies.

What's the good thing about China?

The start-up eco-system is quickly improving in China, with accelerators, mentors and investments. Private and corporate investors in China are becoming more open-minded and developing a global vision. The country is developing quickly, so the market is still full of opportunities for those who embrace adventure and the start-up entrepreneur spirit.
Swiss brands are popular with the Chinese and a symbol of quality. With its huge and developing market, China offers enormous potential for any company planning to expand to China

..and what's the challenge?

With a population that exceeds 1.3 billion people and a land mass larger than the United States, China's sheer size and scale presents challenges uniquely distinct from any other market; the country is highly segmented, with diverse business characters in different regions. Also, the allure of market size sometimes hides the intensity of competition. An ability to adapt and cater to local demand will either be a recipe for success or a challenge for doing business in China

What brings swissnex China to the table?

swissnex China is active in integrating innovation elements in China and offers Swiss start-ups a valuable local network and knowledge. We collaborate closely with public and private sector partners in an effort to foster relationships with mutual benefits and attempt to build a strong link between China and Switzerland.

In addition, we organize and sponsor several start-up programs, such as Seedstars and Venture Leaders. You are welcome to explore our website to find more about our mission and the services we offer.

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Ultima modifica 27.05.2021

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