C.i. Process China consulting

Market research & Regulatory watch in China

By C.i. Process Shanghai
[ Market surveys ]
Research and regulations in China

The Chinese market is not only increasingly competitive, but still known to be difficult to access, opaque and possibly risky. A preliminary study makes it possible to reduce risks and uncertainties by probing a potential, targeting opportunities to be seized, measuring trends and up-to-date access conditions. Which competitors, consumption habits and prospects ? How to position yourself ? which distribution networks ? Are there any preferential conditions and aids for setting up your project ? Which strategy and deployment schedule to prefer ?

China market report content
  Publication updated on January 2, 2024      

1. Research on the Chinese market

Distinct from generalist publications, our reports are personalized analyzes. They aim to answer the key questions for the proper preparation of a domestic distribution, export sales or company setup project in China.

Below are some examples of our deliverables :

Competition analysis and product positioning

  • identification of competing Chinese technologies, products and services and foreign competition present in China. Their strengths and weaknesses
  • the maturity level of the market for the company and its products
  • are there substitute products and do they exist in other markets ?
  • what specificities are required by consumption habits or preferences ?
  • which distribution networks to prefer and conditions for accessing them ?
  • what are the main pitfalls to avoid ?
  • case review : success and risk analyzes.

Regulatory context to access the Chinese market

  • import duties and taxes, review of possible preferential customs regimes
  • conditions for compliance and certification of products for import
  • are there quotas and with what limits ?
  • administrative rules for B2B sales (installation, assembly, maintenance, repair, returns, after-sales service)
  • what non-tariff barriers or regulation can slow down the time to market or competitiveness ?
  • how to optimize a transfer of know-how and technologies ?

Target market size + market share estimates

china market opportunities in modern cities
  • Review of promising market segments in relation to your current capacities and strategy.

  • Analysis of commercial practices and distribution networks.

  • Comparison of distribution channels : direct sales and / or cross-border sales Reputation.

  • Review of current or potential distribution partners.

Markets trend and key customers targets to focus on

  • assessment of the potential market by range of products or services
  • trends according to Chinese regions and provinces development
  • distribution strategies : actual and perceived ability to compete
  • criteria trend indicators likely to have an impact on the evolution of a targeted market
  • competitors investments, government programs, policy changes, new regulations and implementation
  • post-coronavirus (covid-19) crisis opportunities

Strategic analysis and distribution channels

  • sell in China via a 100% foreign owned LLC subsidiary to better animate and control its distribution ?

  • prefer one or several distribution partner network and check their reliability and performance ?

  • e-commerce : how to set up and control the online sales offers in China ?

  • do you have to segment product families in a particular way ?

  • comparison of solutions and cost assumptions for warehousing and distribution

  • it is necessary to take into account the considerations of intellectual property protection. In view of many public notoriety pitfalls, but also the recent strengthening of regulations and controls, this subject deserves special attention.

Standards, certification and product registration in China

  • research applicable China standards, review required tests and registrations

  • applying a normative organization distinct from those of Europe and the USA, the Chinese authorities continue to deploy their own norms and standards. They sometimes force foreign brands to change the composition or proportion of components of products sold in China. This is the case, for example, for certain chemicals, coatings, paints, cosmetics, etc.

  • for sensitive, highly regulated and controlled, toxic or dangerous products, what procedure should be followed to obtain special licenses or permits ?

All the parameters or criteria listed above give examples of subjects we deal with in our reports.


2. Regulatory and normative watch seen from China

About Chinese standards and their normative context

china market research and regulatory watch
  • as a non-tariff barrier tool that is developing as China becomes a central player in world trade, the authorities have established a system of product standards and certification of their own.

  • the standards regulatory logic and requirements used in China are distincts from the standards applicable in western countries.

  • the referential of Chinese standards (GB standards or "Guo biao", national standard) guide product certification tests.

  • for many products, a China standard is not specifically developed. However, this does not mean the certificate of conformity of another country is recognized.

  • simulations conducted with the Chinese authorities make it possible to highlight the documents required that must, for example, accompany an importation made by :

Certification markings and products approval in China

  • The possible need for a Certification follows the requirements of GB standards.

  • The continuous reorganization of the administrations in charge of product approvals and sanitary controls lead to frequent updates of regulations. This particularly affects the most sensitive products such as food and beverages, cosmetics, medical devices.

  • These measures imply the China Customs administration and the market control authorities do not recognize an American or European certificate of conformity. They also do not recognize a test report referring to non-Chinese standards.

  • Comparison of the solutions available to consider a China Quality Label and risk review.
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