How the Chinese government supports small businesses in the country
Small business in China is a key division of the country's economy. The government is convinced that small and medium-sized enterprises are the most important, as they help the economy flourish and reach a new level of development. The more small and medium enterprises, the more jobs.
Today we will tell you how the Chinese authorities help small and medium-sized businesses, and what measures are being taken at different stages of life.
How the coronavirus affected business in China
At the peak of the epidemic in China, it was forbidden to lay off employees and cut their wages. The authorities have asked landlords to reduce the amount of rent paid by small businesses in China. And the landlords agreed.
Reading about China, one gets the impression that the civil responsibility of the population has no boundaries. This was confirmed by the situation with the coronavirus, when the authorities urged people to stay at home, and the people of China responsibly approached the government's request. The same thing happened with landlords - they said to reduce the cost of rent - they reduced it so as not to aggravate the already difficult economic situation in the country.
Small and medium business entrepreneurs, at the state level, were exempted from taxes and social security payments. It was these two sections that required the most costs.
Also interest rates on loans were reduced, loans were approved. We postponed the repayment of loans already taken.
China was the first country to face the coronavirus and there was no time for second thoughts. Therefore, the authorities have carried out joint work to improve the situation of small businesses in China during the pandemic. Then, following the example of China, other countries adopted their methods.
How laws govern business in China
China's legal system is constantly improving in favor of small business.
Since 2021, China has been establishing a “State Fund for the Development of Small and Medium Enterprises”. Financing is carried out from the country's budget. Also, China protects the income of small and medium businesses. There are certain tax breaks.
There is a “National Development and Reform Commission”. This body is engaged in creating conditions for the dynamic development of small and medium-sized businesses in China.
Literally ten years ago, goods from China were not of high quality. They were made from second-rate raw materials using outdated technologies, so such products were not in great demand. Much has changed today, so you can easily purchase quality products at affordable prices on Chinese trading floors. In this article, we will tell you how to start a business in China and how to make good money from it.
Nowadays, anyone can open a business with China in 2021. The most popular types of earnings:
- Dropshipping ;
- Joint purchases;
- Large wholesale trade.
The easiest way to start a business with China from scratch is with dropshipping or dropshipping. This direction of entrepreneurial activity appeared in our country relatively recently, after the first online stores were opened. Dropshipping is attractive in that it does not require any financial investment, since you purchase the product after a customer orders it from your online store.
To open a business with China without investment, you need to agree on cooperation with a specific manufacturer or supplier. When a buyer pays for an item on your internet site, you transfer the money to the account of the Chinese seller. After that, your partner ships the product to the buyer's address, and you get your commission. This scheme has been in operation for several years and brings excellent profits. When ordering goods in small quantities (up to 1 thousand euros), you are automatically exempted from paying taxes or customs duties. Deliveries of products on a large scale require paperwork and taxes. If you have never done such a thing, it is most profitable to start a business with China on resale without investment, that is, to do dropshipping.
Citizens who are fond of shopping in Chinese online stores can make good money from it. Organizing joint purchases is a great small business idea from China. Help other people place orders for the purchase of various products and get your commission for it. Many Chinese sellers offer good discounts on bulk purchases. From this you can get a good additional income. Thousands of people around the world save money on joint purchases, so you can easily find customers who want to purchase inexpensive quality goods with your help.
Wholesale trade is a rather profitable business idea from China, but it requires large financial investments and certain knowledge. In addition, you need to find partners who will buy goods in large quantities. At the same time, it is a great option for those looking for something to invest in so that they generate income in 2021.
Where to start?
- Choice of direction. Before concluding a cooperation agreement with Chinese manufacturers, objectively assess your capabilities and consumer demand in the market;
- Choosing a supplier. Finding a reliable partner in a foreign country is not so easy. At any time, you can run into scammers or unscrupulous suppliers, so before starting work, collect as much information as possible about your business partners;
- Take part in exhibitions. Here you can find new business ideas from China in 2021, choose the right products and conclude profitable contracts with good discounts;
- Wholesale supplies. If you are attracted to wholesale resale of goods as a business, before doing such a business, carefully study the peculiarities of organizing the supply of goods in large quantities. In addition, you need to understand the different ways of transporting goods;
- Customs clearance To avoid any problems with the transportation of goods across the border, you need to understand all the intricacies of customs clearance or find an experienced specialist who will help you with the paperwork.
A lot of trainings and courses on doing business with China are held in Russia. Even beginners in the entrepreneurial field turn their gaze to the Middle Kingdom. Where to start a business with China, what prospects await a businessman, what difficulties to face - the article will tell you in detail.
Why is business with China still promising?
People who are skeptical about the popular idea believe that the best time for small and medium-sized businesses to do business with China is in the past. The penny cost of Chinese products used to make it possible to buy goods in large batches and receive large profits from the resale of goods. Compared to the zero years, prices have increased significantly.
Start with or without attachments?
How to work with China:
- Sell Chinese goods in Russia and Ukraine, wholesale or retail.
- Purchase equipment for business.
- Earn on the export of cheap products from Russia or Ukraine, which are in demand in China. Chicken legs, which are not popular with the Russians, can be successfully traded with the PRC.
You can start a business selling Chinese goods from scratch. When you come across advertisements about earning opportunities without investment, you should not be overly categorical. It is really possible to cooperate with China and earn little money without any investment. But if you have the initial capital that allows you to choose where to start a business with China, it is worth considering all the disadvantages and advantages of each of the options.
Many ordinary people hesitate to start their own business for a long time because of the fear of the financial risks that almost any business involves. Cooperation with Chinese suppliers without investment will significantly reduce the emotional burden on the newcomer. Business with China from scratch is available for young or inexperienced entrepreneurs.
But it should be borne in mind that the lack of investment requires more business skills. This business will have to devote much more time. A very small percentage of entrepreneurs get a really good income without any investment. Many do not have enough patience, so they abandon the case, without achieving tangible results. This option should be considered as a small additional source of income or as a first entrepreneurial experience.
If you intend to organize your own business, do not delay. You can start without starting capital. Let the income be small, but the experience gained in the future will allow you to develop faster and avoid many mistakes.
No, AliExpress is not the best option for bulk purchases.
China Relations Specialist, General Manager of ChinaToday Service.
An analogue of almost any product can be found in China
Most likely, you will find exactly the same, only cheaper. It doesn't matter if the product was originally purchased in Russia or in another country - in most cases it was made in China.
An entrepreneur recently contacted us. While vacationing in Thailand, she tasted tea, as she thought, local, and decided to establish its supply to Russia. Took a batch for trial. And when the goods were sold out, I decided to buy more and turned to us - not to go by myself every time. We work with China and offered to look for the same tea from Chinese suppliers. And they found it! And even at a lower price. The client has established supplies from China and is happy.
Another businessman makes slimes for children. In Russia, he bought jars of the desired shape for them at a price of 12 rubles plus from 2 rubles per cap. In China, I found offers from 8.5 rubles and wondered whether to order all the ingredients for their products there. And this is more than two dozen items.
China today can be called a world production base, where there is a product for every request, taste and wallet.
Apple also orders production of iPhone and iPad in China, finding performers who meet its standards.
Guides in Stockholm directly warn tourists: T-shirts with Swedish symbols and other goods in souvenir shops in the tourist area are made in China. Locally produced only handmade wooden sculptures at a price of 1,000 dollars in local currency equivalent.
The notion that China is a supply of cheap goods of dubious quality has long been outdated. Chinese manufacturers are ready to provide any quality, the only limitation is how much you and your client are willing to pay for it.
If your product needs certification, it must be passed in Russia
A certificate is required to sell a number of goods in the Russian Federation. Often, Russian entrepreneurs ask for such certificates from a Chinese supplier and refuse to purchase if he does not provide them. Or ready to do it, but only in electronic form.
An up-to-date business from China, the ideas of which are quite simple and accessible to everyone, can bring a good profit to a novice entrepreneur.
The Chinese market is vast, with many international firms with popular brands. Among the offered assortment you can always find a suitable product for sale.
Considering that business from China has been at the peak of popularity for a long time, one should realize the futility of pursuing new products.
Having studied the market, it is worth identifying the goods of the greatest demand and dealing with them. You can turn to specialists who will not only conduct the necessary marketing research, but also create a business plan for a novice businessman.
The amount of profit received will directly depend on the direction of the business and the literacy of its implementation. In the first case, it will be important to choose exactly that field of activity in which there is at least some experience. In order for a business to initially become profitable, it is important not to forget about the uniqueness of the idea.
Find a supplier
Attention should be paid not only to the price characteristics of products, but also to their quality, as well as to the study of contracts and delivery terms. If goods are purchased for children, then you need to check the availability of laboratory research documents for the composition of the product.
Entrepreneurs are interested in supplying products from China precisely because of the low cost of goods in comparison with domestic counterparts. A large selection of products is also a significant advantage in partnership with China. Production lines for small businesses from China are popular all over the world as an opportunity to save money not only when buying equipment, but also when renting it with a subsequent purchase.
Business Ideas with China
Interesting business ideas from China are a reason for starting a profitable business. For a business from China to be truly profitable, it is necessary to single out one promising line among a huge range of products and start selling it. A good option to implement would be to help newcomers to enter the Chinese market. First, you can make the minimum payment so that you can earn a reputation.
Business proposals from China are based on the simplest buy / sell principle and do not require significant investments. Many ideas are quite profitable, and the price range for the products sold is set by the entrepreneur himself. In your city you can open:
- Brand store of shoes and clothes. The majority of international companies producing branded items have located their branches in China, so the cost of popular brands has become lower. You can make good money on the difference in the price of the thing you buy and sell.
- Dropshipping store. By entering into a partnership agreement with a dropshipping company, you can profit from the difference between the market value of the product and the manufacturer's cost. This type of entrepreneurial activity is associated with low risks, but does not require significant investments. Such a scheme is useful for acquiring knowledge and experience in the field of business.
- Sale of goods by the piece. The profit is the difference between the wholesale and the piece sale. Almost all businessmen use this method.
- Implementation of gadgets and fashionable novelties. In this case, interesting business ideas from China can bring good profits. Indeed, in China, various phones and other devices are relatively inexpensive. Such a thing in Russia can be sold several times more expensive.