Exporting to China: What do I need to bear in mind?
China is not only the second largest economy in the world, but also a market with huge potential for exporters. Exporting to China offers numerous opportunities, but requires comprehensive preparation and strategic planning.
But what needs to be considered when exporting to China? Companies entering this market have to deal with a multitude of regulations, cultural peculiarities and logistical challenges in order to be successful.
Exporting to China: What do I need to consider? We answer your questions!
Market analysis and strategy
Understanding consumer needs
Before entering the Chinese market, it is crucial to understand consumer needs and market trends. Chinese consumers often have specific requirements that differ from other markets.
A detailed market analysis helps you to identify these needs and adapt your product range accordingly. This also includes taking into account the demographic and social factors that influence purchasing decisions.
Competitive analysis and cultural sensitivity
A thorough competitive analysis is essential in order to recognise the strengths and weaknesses of your competitors and adapt your own market strategy accordingly. It is important to understand the cultural differences that characterise business behaviour in China. Relationship building, known as guanxi, plays an essential role in Chinese business and should be factored into your strategy.
- Identify the main competitors and their market strategies
- Take cultural factors into account in your day-to-day business
- Build strong business relationships (Guanxi)
Legal framework
Export Control Act and compliance
Since the Chinese Export Control Law came into force on 1 December 2020, the government has been given far-reaching control powers that exporters must observe. The law applies to all goods that could jeopardise China's national security and interests.
Companies should ensure that their compliance measures are up to date in order to avoid legal consequences. This also includes the regular review and adjustment of internal control programmes.
Registration obligations and certifications
Manufacturers and exporters must familiarise themselves with the specific registration obligations and certification requirements that apply to exports to China. CCC certification (China Compulsory Certification) is mandatory for many products and requires careful preparation and documentation. Companies should plan early in order to obtain the necessary authorisations in good time.
Note: Compliance with legal regulations and timely registration are crucial for a successful market entry in China.
Exporting to China: What do I need to consider? We answer your questions!
Customs declaration and import regulations
CCAM requirements and required documentation
Precise and complete information is required for the customs declaration in China, which is recorded in the "China Customs Advanced Manifest" (CCAM). Exporters must ensure that their documentation contains all the necessary information to avoid delays in customs clearance. Customs clearance to be avoided. This includes precise goods descriptions, HS customs tariff numbers and the correct information on the origin and value of the goods.
Customs duties and import taxes
The customs rates and import duties in China vary depending on the type of goods and their customs value. Companies should inform themselves about the applicable customs duties and include the costs in their pricing. This calculation is particularly important for DDP (Delivered Duty Paid) deliveries, as the seller pays the duties in this case. For other delivery terms, the importer in China pays the duties incurred.
In addition, various VAT rates apply in China, which must also be taken into account. A careful calculation of these taxes is crucial to ensure the profitability of the export.
- Check the current customs rates and import duties
- Calculate the tax rates precisely in your pricing
- Plan customs clearance carefully to avoid delays
Import bans and restrictions
China has issued a series of import bans and restrictions that exporters must observe. These include weapons, hazardous chemicals and certain media content that is considered a threat to national security.
In addition, packaging, especially wooden packaging, must comply with international standards so as not to jeopardise the import process. Companies should familiarise themselves with these regulations in order to avoid legal problems.
Certifications and licences
Import licences and dual-use goods
Special licences and certifications are required for many products that are exported to China. Strict regulations apply to dual-use goods in particular, which can be used for both civilian and military purposes.
Companies should ensure that they apply for the necessary licences in good time to avoid delays in the supply chain. Close cooperation with local partners and authorities can be helpful here.
Special certifications for food and technology
Food and certain technologies are subject to special certification requirements in China. Food manufacturers must register with Chinese customs and the products must fulfil certain standards.
Strict controls apply to technology exporters, especially when exporting high technologies and key components. Companies should inform themselves about the specific requirements and ensure that they take all necessary steps to obtain the certifications.
Note: Applying for the necessary licences and certifications at an early stage can avoid costly delays.
Exporting to China: What do I need to consider? We answer your questions!
Logistics and transport
Choice of transport routes and logistics partners
Choosing the right transport routes and logistics partners is crucial for smooth exports to China. Due to the size of the country and its diverse infrastructure, it is important to choose the most efficient routes for the transport of goods. Companies should work with experienced logistics service providers who are familiar with the local conditions and regulations.
China-Express: Dörrenhaus is your expert for transport to China
Challenges in storage and distribution
Warehousing and distribution in China can be complex due to different regional requirements and regulations. Companies need to ensure that their logistics processes are efficient and cost-effective in order to maintain competitiveness. This also includes complying with environmental standards and safety requirements that may apply to certain products.
Marketing and sales
Adaptation of marketing strategies
Adapting marketing strategies to the Chinese market is essential in order to be successful. The use of e-commerce platforms, which are very popular in China, can facilitate market access and increase visibility. Companies should adapt their marketing messages to the cultural and linguistic characteristics of the market in order to target consumers effectively.
Role of e-commerce and local partnerships
E-commerce plays a central role in the Chinese retail sector. Companies that want to sell their products in China should use the leading e-commerce platforms such as Alibaba and JD.com.
In addition, local partnerships can be beneficial to facilitate market access and expand distribution networks. Cooperation with Chinese partners can help to overcome cultural and business barriers.
Challenges and risks when exporting to China: What should be considered?
Bureaucratic hurdles and protection of intellectual property
Exporting to China harbours risks that need to be overcome. These include bureaucratic hurdles that can slow down the trade process, as well as the protection of intellectual property. Companies should take steps to protect their brands and technologies and be aware of the legal protection mechanisms available in China.
Dynamic market changes and political decisions
The dynamic market conditions and political decisions, such as the "list of unreliable entities", require companies to be flexible and adaptable. Exporters should closely monitor political and economic developments in China in order to be able to react to changes. A proactive risk management strategy can help to identify and overcome potential challenges at an early stage.
Trust Dörrenhaus - your partner for safe and efficient transport to China
In a globalised world where supply chains need to be flexible and efficient, Dörrenhaus offers tailor-made solutions for transport to China. Whether you need fast air freight, cost-effective sea freight or the perfect balance with our rail freight on the new Silk Road - we have the right offer for you.
Your advantages:
- Comprehensive logistics solutions
- Flexibility and innovation
- Reliability and expertise
- Personalised service
China Express Dörrenhaus: Enquire now!
FAQ
What do foreign companies have to consider when exporting food to China?
Since 1 January 2022, foreign companies must register with Chinese customs and obtain all necessary food certifications. Compliance with specific hygiene and safety standards is crucial to avoid legal difficulties.
How does exporting to China work and what do I need to bear in mind?
Exporting to China requires a thorough market analysis, compliance with customs regulations and the timely acquisition of the necessary licences. Companies need to adapt to cultural differences and plan flexible logistics solutions.
What are the advantages of working with Dörrenhaus?
Dörrenhaus offers comprehensive logistics solutions, flexible transport options and decades of experience in the China business. Customers benefit from personalised service and a broad network for efficient processes.
