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Winning China's markets - An SME investment guide

Author : Understanding China
By Jonathan Story and the China Advisory Council


The Policy Brief is written by Jonathan Story and based on the input of the members of the China Advisory Council. By addressing the main challenges of SMEs investing in China’s market, the brief formulates a comprehensive SME investment guide for China and proposes three policy recommendations:

1. Make all European member state information centres and support units in China ‘multi-hatted’ to represent the EU as a whole, and to make ‘Europe’ into a brand name in China 
2. Focus all European activities in the geographical areas of the highest potential yield – i.e. the costal areas’ top-tier cities and inland regions that benefit from good infrastructure networks 
3. That the European Commission defines a single coherent European investment policy vis-à-vis China based on reciprocity and capitalising on existing bilateral investment treaties before consulting with other global players



This Policy Brief is written from the perspective of European small and medium-sized enterprises considering operation in, or already operating in China. However, it also takes into account the wider context of EU-China relations, as they may influence Chinese company policy. This brief starts off from this wider horizon, beginning with the observation that senior management is advised to invest time and resources in learning about the country’s complex transformation. The brief indicates the reasons why doing business in China should be carefully thought through, and spells out necessary conditions for success, before ending with some remarks regarding the Commission’s role in helping to foster a favourable climate for EU businesses operating in China.







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