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As China’s economy will surpass the United States in 2020, entrepreneurs from all over the world, especially from the United States, Europe, and Australia, will come to China.

With a GDP of nearly $22 trillion in purchasing power parity (2016 figures), China is a place you shouldn’t miss if you’re constantly looking for new avenues for business growth.

As a frugal entrepreneur, we believe you need to do some preparation before coming to China to grow your business.

Whether China is in uncharted territory or not, or you come to the country as a tourist or visit some close people, the business scenario is completely different. After doing business in China, many laws and regulations must be obeyed. The Chinese government offers foreign investors many opportunities that you should be aware of if you don’t want to miss out.

Below we’ve listed 10 things to do before or after you start a business in China as a foreigner.

1. Find out which sectors are good for foreign investment

Once you start your research, you will find that, in terms of foreign investment, Chinese industry falls into the following categories: encouraged, restricted, and prohibited.

There are many sectors where the government does not allow foreign investment. There are many sectors in which the government encourages foreign investment. Some restricted sectors require additional permits to do business as a foreigner in mainland China. It is recommended that you review the Foreign Investment Guidance Sector Directory.

2. Collect as much information as possible

This doesn’t just mean business-related information. China is culturally and socially different from Western countries. Most business decisions are made through social interactions. Bureaucracies work differently in China than in other countries. Personal relationships are important.

It is recommended that you interact with people who are already doing business in China – they will be able to share a lot of information with you.

Attended several trade shows in China. Develop multiple local connections. Read books about China. Subscribe to trade magazines published in China.

For those of you who currently want to have a business in China without having to come to China, then you can register company in China by using the services of Stepbrother.

By Kay