From launching your products on China's e-commerce platforms to setting up a branch in the country and selecting the right sectoral hub, the report offers comprehensive 2025 updates on options available to European SMEs. The updated report is a guide for SMEs seeking clarity on how to export to China, conduct online sales and much more.
With global trade dynamics evolving rapidly and China remaining one of the world’s largest and most complex markets, many European SMEs find themselves weighing the opportunities and challenges of doing business in the country. Navigating such a vast and highly regulated environment can be daunting without reliable, practical information. Our new report, “Ways to Enter the Chinese Market”, is meant to guide SMEs seeking clarity on how to export, conduct online sales, or establish a local presence, with real-world examples of SME peers in the market.
To help European businesses make informed decisions based on their specific commercial objectives, the guide outlines a range of market entry strategies. These include both direct and indirect exporting methods, options for online entry, the use of Employer of Record (EOR) services, and establishing a presence through licensing or franchising. We provide strategic comparisons and illustrative case studies, such as scaling from indirect exporting to setting up a Wholly Foreign-Owned Enterprise (WFOE), or adapting a franchise model to suit local market preferences.
The report then details options to export goods and services, offering SMEs a detailed breakdown of the logistical, legal, and practical issues that can arise when exporting to China. It explains the roles of intermediaries such as agents and distributors, addresses the growing relevance of cross-border e-commerce (CBEC), and outlines service sector opportunities and associated regulatory requirements. The challenges and benefits of each route are examined to help businesses assess their entry model with greater clarity.
The report also explains business establishment options in China, including WFOEs, joint ventures, representative offices, and partnerships. It delves into China’s Pilot Free Trade Zones (PFTZs) and their potential benefits for SMEs. Case studies show how some firms have leveraged local partnerships or free trade zones to improve market access, operational efficiency, or fulfilment logistics.
Further sections address key legal and regulatory considerations, such as foreign exchange control, compliance requirements, intellectual property (IP) protection, and potential business risks. We also assess the role of Hong Kong as an entry point to the Chinese market today and explore sector-specific opportunities. Concluding with strategic considerations and practical recommendations, this EU SME Centre report, written with the contribution of experts from MSA Asia, aims to guide European SMEs seeking structured, neutral information on entering and operating in the Chinese market.
The report can he downloaded here in PDF-format.
