Setting Up Business in China

Setting Up Business in China
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Institutional Affiliation

Setting Up Business in China
Introduction
Many people in China own smartphones hence they can surf the internet, especially in large urban centers. This is seen as an added incentive to set up shop in China. However, there is also the menace of counterfeit goods in the market which are sold at lower prices (Tian, 2016) This is backed by a customer base which only relies on the trusted suppliers it has acquired over time.
Types of Businesses
The Chinese are very sensitive in the way they handle foodstuff hence setting up a local restaurant which offers quality Chinese food and is a clean restaurant may be a good project. The Chinese are proud of their culture that is culinary heritage hence prefer to eat their culturalism foods (Mann, 2018). Online sales can be profitable due to the vast market provided by people with access to the internet. The business could be that of selling items online and hence transporting them to the customers within the vicinity and beyond. The products sold will have to have a taste of status symbol as the Chinese like to associate themselves with the class representing social status.

Challenges and Risks
There is the challenge of bureaucracy where many firms have decided to quit the market because of struggling to keep up with the laws (Murray, 2014) There is the challenge that the Chinese have trust issues regarding other business people hence favor their own by buying only from the renowned supplier.

There is also the challenge of tastes and preferences as the Chinese have a different culture detached from the world hence there is the risk that the business will not be favored by the Chinese
Steps to Address These Challenges and The Risks
Baxter should embark on a cultural enlightened business trip to find out what are the preferences which the Chinese may like before setting up the business especially foodstuffs. Baxter should also find out the laws and regulation that are required in setting up and running of the business to avoid clashing with the authorities. Baxter should come up with a taste and preference model that will woo customers to her shop as opposed to the competitors.
Conclusion
The setting up of business in China is sometimes difficult due to the cultural heritage. The chances of setting up a successful business lie in the understanding of their culture that is what they desire and prefers the most. A business with the idea of how to treat the Chinese people will prosper.

References
Murray, G. (2014). Doing business in China: The last great market. Routledge.
Tian, X. (2016). Managing international business in China. Cambridge University Press.
Mann, J. (2018). Beijing Jeep: A case study of western business in China. Routledge.