The logic of buying changes fundamentally across markets depending on whether the customer is a consumer, a business or the state. Much like you would expect in the Western world. But there are differences.

Key takeaways

Consumers: Where the algorithm decides. Your customer is the consumer, but your client is the e-commerce platform. Success depends on understanding and serving the platform's logic - based on price, speed and content - to earn visibility from its algorithm. The gatekeeper is the platform algorithm.

Businesses: Major purchases are group decisions that socialise risk. Your internal champion must navigate committees comprising technical, procurement and finance stakeholders. Particularly, in larger businesses.  In pragmatic SMEs and founder-led firms, this process is more streamlined - the founder or CEO can make decisions unilaterally. The gatekeeper is the designated purchase group or the CEO.

Governments: Where policy is paramount. Your true product is not what you sell, but how your sale fulfils a bureaucratic or political key performance indicator (KPI). Success means aligning perfectly with local policy goals and navigating multi-year, project-based procurement cycles. The gatekeeper is the policy mandate.

Consumer markets

E-commerce accounts for more than one fourth of total retail sales in China, which is higher than in most of Europe or the USA. Major brands have the potential to enjoy tremendous success on Chinese e-commerce platforms. This is probably why e-commerce is often hailed as the solution to all SME problems.

It isn't.

For instance, could you produce native content for each platform - educational and brand-focused on WeChat, fast-paced and entertaining on Douyin, and aspirational and community-focused on Xiaohongshu? Could you deliver 10,000 units on the same day if demand required it? Could you ship within one to three hours? If not, customers will start to complain after five hours, which could harm your brand. Do you have the resources to develop and operate a WeChat mini-program, which often costs in excess of EUR 200,000 and often necessitates a 24/7 customer service team? Are you able to offer competitive prices? Would you be willing to lower your prices at the request of Taobao or others to a level that is barely profitable? If you don't comply, you will often be excluded from their advertising efforts. If you do comply, you may never be able to return to your original price level.

As an alternative to setting up your own e-commerce business, SMEs could consider partnering with a Chinese company that already has a presence on e-commerce platforms. Alternatively, they could enter an e-commerce platform via country pavilions or an equivalent aggregating platform, which could provide valuable opportunities for SMEs with limited resources. These models reduce the direct costs of establishing an independent online presence and increase dependency on a partner. Some pavilion organisers may not have the funds to promote the pavilion or your product.

Business markets

While B2C sales operate in public, algorithm-driven ecosystems, B2B sales are based on a completely different principle: Chinese B2B sales are built on relationships, but modern business has professionalised this foundation. It is no longer primarily about banquets (though social connections matter), but about demonstrated competence, consistent presence, and trust built through delivery. Younger decision-makers, in particular, value expertise as much as Guānxi (relationships).

Winning the deal is only the beginning. Chinese B2B clients expect responsive, localised support: same-day response to inquiries, available technical support in Mandarin, prompt on-site service, and comprehensive training. Treat key accounts as strategic partners with dedicated management and regular executive engagement.

The first order is just the beginning. Your long-term success should build on these principles:

Delivery excellence: Meet promised timelines religiously. Quality must match samples/specifications precisely. Communicate proactively (don't wait for them to ask about status). Handle any issues immediately and generously.

Responsive service: Technical support should of course be in Mandarin. Response to enquiries should occur immediately (same day). Build relationships with their operations team, not just procurement.

Account development: Provide regular check-ins, even when no active order. Bring new ideas and product updates. Understand their business evolution and upcoming needs. Introduce them to relevant people in your company (builds their sense of access).

The goal is to move from "vendor" to "strategic partner". When you succeed, they bring you problems to solve, not just requests for proposals to quote; they introduce you to other parts of their organisation; they invite you to strategic planning discussions; and defend you internally when competitors attack on price.

Government markets

The Beijing government issues Five-Year Plans, sets macro policy and defines ideological direction. China is too large, too diverse and too complex to be micromanaged. Consequently, execution is delegated to provinces, cities, and counties, which are assigned targets and significant autonomy in achieving them.

This is why you should identify your primary contacts at the Investment Promotion Bureau as well as other relevant operational bureaus, establish a formal professional presence with Chinese-language materials and maintain consistent, respectful communication.

Local governments do not all operate in the same way. Based on their economic foundations, political leadership and historical development paths, they adopt different models. The most common models are as follows:

Venture capitalist: The local government acts as an aggressive investor, making significant investments in strategic industries using state capital.

Ecosystem facilitator: While the government provides infrastructure, regulatory clarity and talent pipelines, it largely lets private companies compete and innovate without heavy intervention. It favours clusters and ecosystems over picking specific companies

Employment stabiliser: In cities and provinces that depend on declining industries, such as coal, steel and heavy manufacturing, the government acts as an employment stabiliser. Its primary goal is to manage industrial decline in a way that avoids social unrest. To this end, officials prop up state-owned enterprises, delay restructuring and resist layoffs.

No matter which model, the goal for a business selling to government is to align with policy priorities, build institutional credibility and successfully navigate bureaucratic procurement systems.

The sales process is project-based and often spans several years. It starts with policy tracking and relationship cultivation, moves on to bid qualification, and culminates in formal tendering.

Success depends on navigating bureaucracy, guanxi, mastering procurement law, writing winning tender documents and having extreme patience.