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Is business in China still profitable?

Shanghai Tower
Shanghai Tower
China is no longer a place chosen by entrepreneurs in respect of low labor costs. Local salaries are not lower than Polish ones, and some taxes are now considered as expensive. Effect? It is more and more difficult to find attractive prices of products in China.

China still attracts entrepreneurs owing to the access to international markets and giant domestic market. It is a country with very well developed logistics: it has a great network of public roads, connecting trains and marine links. China, thanks to its infrastructure, raw material resources and after all friendly tax policy, is able to keep investors, although costs of managing business there are increasing – judges Radosław Domagalski, chairman of Magellan Trading Shanghai board, a partnership which is a part of Magellan Group.

The entry on Chinese market demands time, gaining experience, knowledge of local business culture, local regulations and conditionings from an entrepreneur. Moreover, the area for activity should be well considered in order to meet with kindness of local authorities. We should remember that we are talking about an enormous state organism in China, which in some parts functions better, and in some worse – points out Radosław Domagalski. – It causes that the risk factor increases, which means that we have to make our first step well, that is choose a location.

Time and effort, which are devoted to the entry on Chinese market, may bring something in considering longer perspective. It means that the process is calculated for many years – the strengthening of resources there, building some awareness of a brand or own human and organizational resources etc. It is not an easy mechanism, but if we make this first jump properly, the business is bound to succeed – comments chairman of Magellan Trading Shanghai board.

According to the official Chinese data, foreign exchange of this country with the world totaled 4,16 billion dollars in 2013. The most significant trading partner of the Middle Kingdom is the European Union, and the exchange with it exceeded 559 billion dollars, while the value of Polish-Chinese trade is calculated on 21 billion dollars.


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