China remains one of the world’s most attractive — and misunderstood — growth markets. For international SMEs, the country offers a rare mix of scale, speed, and sector-specific demand: Unmatched market scale Over 400 million middle-class consumers, many actively seeking sustainable, design-forward, or health-conscious products. China is the world’s largest importer of many product categories relevant to international SMEs. Strategic B2B opportunities China is not just about consumers: China's B2B ecosystem is evolving fast — with growing demand for specialist suppliers, niche technologies, and reliable Western partners. Public-private partnerships, procurement pipelines, and industrial clusters create opportunities for collaboration beyond direct sales. Policy tailwinds The rise of a younger generation in China's government is not just a demographic fact - it is a strategic signal. It marks a shift towards a more metrics-driven, innovation-oriented, globally literate style of governance. For international SMEs, this means more opportunities - but also a demand for more sophistication. Further more, the Chinese government is actively supporting sectors aligned with multiple rapidly growing industries such as green tech, medtech, sustainable food, and education. Local governments offer incentives, tax relief, and grants to foreign innovators entering specific regions or industries. Yes, China is a complex market to Western SMEs — but complexity is your moat. The same factors that make China difficult for competitors — regulation, cultural differences, bureaucracy — also reduce market saturation if you enter strategically. The new leadership Why China matters

Which industries are in high demand now

While several key trends—largely influenced by policy—drive the market, most high-IP solutions, including those involving brands, patents, know-how, and market influence, are in demand within China. Sectors experiencing increasing interest include: Green technology and sustainable products Healthcare and medical technology Education, child development, and elder care Retail products with established brand equity Overall, China exhibits a substantial appetite for a broad range of products, and Shaeps continuously tracks demand signals and policy shifts to ensure that your offerings remain aligned with current market needs. See our list of target industries here: Target industries Why small brands have an edge Extracurricular eduction for kids

How much localisation is necessary

Localisation isn’t optional in China. Regional preferences affect: Language - Mandarin is standard, but dialects and tone matter. Visual branding - color, layout, and fonts may need to shift. Product specifications - you may need to adapt packaging, instructions, or even product features to meet local expectations. Legal - some provinces enforce national rules differently. Compliance and registration vary. Your product should be localised to minimise friction. Marketing mistakes in China More about localisaiton

What are the key risks in different regions

Risks vary widely: Regulatory enforcement - some regions are more strict or slow. Logistics - inland cities may have weaker infrastructure or customs delays. Partner quality - in less developed regions, it’s harder to find the best distributors or service providers. Shaeps reduces your exposure by helping you select pre-validated partner networks and legal experts on the ground.

How can I benefit from incentive programs

Many provinces offer: Entry grants or rebates Tax relief for innovation or sustainability Office space subsidies R&D partnership opportunities We maintain relationships with local government bureaus and can help you tap into these programs as part of your entry strategy.

How do we get started

Send us a message with details of your company, your products, and target audience. We will then conduct an initial screening and market analysis to determine the business' feasibility. There's no obligation – just clarity. Contact us

How would you evaluate a company's potential for success

First and foremost, we evaluate the product-market fit - to what extent would the market accept your product as is - because that is the hardest business model element to change. However, other factors, such as financial health, operational capacity, cultural alignment and ambition, may also be taken into consideration.

What are the typical steps involved in entering China

Although the process can be described in high-level steps for clarity, it is always tailored to your company’s specific profile, goals, and market context: Screening We begin by identifying and evaluating potential partners or target companies in China. This includes gathering essential company details, conducting an initial market study, and performing a preliminary screening to assess the viability of the opportunity. Qualification For promising targets, we conduct deeper due diligence: collecting a full company profile, initiating direct contact to assess genuine interest, translating key documents, and running a second, more detailed market study to validate strategic fit. Business planning Once a target is qualified, we define the roadmap towards commercial operation in China, which results in the company's business charter including business model, go-to-market strategy, and capitalisation approach. Company formation & onboarding Execution begins with establishing a local legal entity in China and setting up governance structures. We simultaneously secure intellectual property rights, open a local bank account, set up office and digital infrastructure, onboard local talent, and finalize strategic partnerships or funding. Beware that the need for company formation occurs earlier than in most western markets.

What is the typical timeline for launching in China

Timelines differ, of course, depending on your business. But generally speaking out ambition is to follow a timeline that looks like: Screening: 1 week Qualification: 4 weeks Business planning: 6 weeks Company formation & onboarding: 6 + 26 weeks There is a major factor that can change the timeline dramatically: Regulation. Subject to industry and product, you may need approvals, which can take anywhere from a few months to years.

Is a physical visit to China required - and when

Not in the early phases, but eventually, yes. Your (or a key decision maker's) visit to China is strongly recommended prior to signing partnership or funding agreements with local partners. Meeting people in person builds trust, aligns expectations and helps you understand the local context first-hand. We will coordinate everything.

Why should I have a partner in China

To an SME - and even to corporates - expanding into China without a trusted local partner is like navigating in the dark. The (right) partner is most likely the difference between success and expensive failure. A partner in China matters because: You get local access fast. China runs on relationships (guanxi), not cold calls. A good partner already knows the right distributors, buyers, and officials — helping you skip years of trial and error. You reduce legal and regulatory risk: From licensing and customs to product approvals, and taxes, Chinese regulation is complex and often city-specific. A local partner helps you stay compliant and avoid costly surprises. You protect your brand and IP: Working through trusted channels protects your intellectual property and keeps your brand out of the wrong hands - not the least in sectors like design, tech, and food.

How can I find investors for my venture

We have established relationships with over 15 investors and 40 local governments. These are our main sources of targeted investors for your business.

How do you identify and shortlist potential partners

Through our network of contacts with investors and local governments on the ground, we look for partners who have complementary capabilities and market access, and who are genuinely interested in your value proposition. Doing business in China largely depends on relationships and action.

Can we propose our own potential partners

Absolutely – bring your leads. We’ll qualify them using our process and integrate them into the workflow. Combining your insight with our validation creates stronger outcomes.

Can we fast-track the process if we have a partner

If you already have a local partner, the opportunity to fast-track the process is there. However, we still recommend validation. Even if you have a target in mind, we will carry out qualification and fit checks to avoid costly mismatches. Skipping steps increases the risk of failure, so we’d rather get it right first time.

How do I build a go-to-market plan as an SME

Actually, you don't. While we develop a high-level business model and funding plan for your company, which will govern us in the planning phase, we propose you postpone the go-to-market planning until the organisation has been designed. Only then and in cooperation with the local partner should you discover and design the blueprint for your way to market.

What role does the company play during onboarding

You provide strategic direction and intellectual property. We help you set up local execution, but you remain closely involved in decision-making, particularly regarding branding, pricing and team leadership.

How do we deal with local regulations

Navigating Chinese regulations is one of the top barriers for SMEs entering the market for reasons such as: It’s local and fragmented - national rules often vary by province or city. Laws change quickly and often without much notice. It can be difficult to know who to talk to — or trust. Language and legal interpretation. Small missteps in documentation can cause major delays or fines. But it doesn’t have to be a deal-breaker. The key is understanding the landscape early, and partnering with those who already know it.

How do you support IP and trademark registration

We initiate trademark registration at an early stage of company formation and provide advice on IP structuring. We work with trusted local agents to protect your brand, patents and designs under Chinese law. IP protection in China

Do you help recruit, and onboard local talent

Yes. Depending on your requirements, we can identify, screen and support the hiring of key personnel (GM, sales and operations) and ensure a smooth onboarding process, including contracts, compliance and cultural integration.

Do you assist with opening a local bank account etc

Yes. We handle bank account setup, cloud systems, office IT, and other business infrastructure to make you operational from day one.

How do we ensure alignment with the partners or team

Through clear governance, shared KPIs, regular updates and relationship building. Trust is built through human connection, transparency, and shared milestones.

What makes your approach unique

We execute. We qualify partners, co-create business plans, establish legal entities and onboard teams on the ground. Our goal is to be recognised for our placement power — our ability to find the partners, funds and other assets required for a successful launch. We only succeed when you’re up and running in China.

How do you generate revenue

We generate revenue from multiple revenue streams, the primary being yield from shareholdings (SMEs), transaction fees (large companies), and performance fees from consulting.

Do you support translation

Yes, we provide translation services and support cross-cultural communication. All documents and key communications are professionally translated. We work fluently in English, Chinese (Mandarin) and Danish, with seamless translation built into every phase of the process. There is no loss of meaning or cultural gaps.

Can you support ongoing operations

Post launch, you run the business and we step back, unless you request continued advisory support. However, we can support your Chinese operations to help you find the best way forward.

Frequently asked questions about export

China remains one of the world’s most attractive — and misunderstood — growth markets. For international SMEs, the country offers a rare mix of scale, speed, and sector-specific demand:

Unmatched market scale
Over 400 million middle-class consumers, many actively seeking sustainable, design-forward, or health-conscious products. China is the world’s largest importer of many product categories relevant to international SMEs.
Strategic B2B opportunities
China is not just about consumers: China's B2B ecosystem is evolving fast — with growing demand for specialist suppliers, niche technologies, and reliable Western partners. Public-private partnerships, procurement pipelines, and industrial clusters create opportunities for collaboration beyond direct sales.
Policy tailwinds
The rise of a younger generation in China's government is not just a demographic fact - it is a strategic signal. It marks a shift towards a more metrics-driven, innovation-oriented, globally literate style of governance. For international SMEs, this means more opportunities - but also a demand for more sophistication.

Further more, the Chinese government is actively supporting sectors aligned with multiple rapidly growing industries such as green tech, medtech, sustainable food, and education. Local governments offer incentives, tax relief, and grants to foreign innovators entering specific regions or industries.

Yes, China is a complex market to Western SMEs — but complexity is your moat. The same factors that make China difficult for competitors — regulation, cultural differences, bureaucracy — also reduce market saturation if you enter strategically.

The new leadership
Why China matters

China is not one market – it’s a collection of vastly different regions, each with its own buyer behaviour, regulation, infrastructure, and market maturity.

Further more, there are niche industrial hubs (smaller but highly specialized regions where industry clusters, government incentives, and infrastructure alignment) that makes ideal entry points for SMEs in specific sectors. These cities may not be well known globally — but they are key growth markets where Chinese companies are actively looking for innovative foreign partners.

Choosing the right city or region can mean the difference between fast traction and frustrating delays. We will guide you in the process.

While several key trends—largely influenced by policy—drive the market, most high-IP solutions, including those involving brands, patents, know-how, and market influence, are in demand within China. Sectors experiencing increasing interest include:

Green technology and sustainable products
Healthcare and medical technology
Education, child development, and elder care
Retail products with established brand equity

Overall, China exhibits a substantial appetite for a broad range of products, and Shaeps continuously tracks demand signals and policy shifts to ensure that your offerings remain aligned with current market needs. See our list of target industries here:

Target industries
Why small brands have an edge
Extracurricular eduction for kids

Localisation isn’t optional in China. Regional preferences affect:

Language - Mandarin is standard, but dialects and tone matter.
Visual branding - color, layout, and fonts may need to shift.
Product specifications - you may need to adapt packaging, instructions, or even product features to meet local expectations.
Legal - some provinces enforce national rules differently. Compliance and registration vary.

Your product should be localised to minimise friction.

Marketing mistakes in China
More about localisaiton

Building trust is the first step to success in China, but verifying that trust is equally important. At Shaeps, we leverage trusted local networks to identify reliable partners, ensure transparency, and support you throughout the entire process, from initial contact to contract and ongoing collaboration.

Although traditional 'guanxi' remains important, the current business environment allows you to establish trust at the same professional level as in the West — provided you communicate, verify and engage with the right partners.

Finally, we always apply the normal practical precautions: verifying business licences, legal status and ownership structures; requesting case studies and client references; ensuring local legal review before signing; avoiding large upfront payments until performance is proven; and starting small before scaling up once trust has been established.

Cultural differences

Shaeps advises establishing a local subsidiary before planning a go-to-market strategy in China. Unlike in much of the Western business world, where it would be possible to do business without establishing a local subsidiary, this is quite different in China for a number of reasons:

Signalling commitment. In Chinese business culture, long-term commitment and relationship-building (guanxi) are highly valued. Registering locally shows that you are not just testing the waters, but are committed. Having no local presence leads to a lack of credibility. Potential partners may see you as a "tourist" rather than a serious player.

Public organisations. Government and state-owned enterprise partnerships are huge opportunities that are completely inaccessible without local registration. Government procurement and state-owned enterprise partnerships present huge opportunities, but these are completely inaccessible without local registration.

Payment complexity. China's foreign exchange controls make outbound payments cumbersome. Most Chinese companies would rather work with local entities and pay in RMB than deal with international wire transfers, currency conversion hassles and regulatory paperwork.

Regional incentives. Tax holidays, subsidies, free trade zone benefits, R&D grants and other preferential policies are exclusively for registered local entities.

IP protection. Although it is possible to register IP without a local entity (via the Madrid Protocol for trademarks and the PCT for patents), enforcement is significantly stronger with a local presence.

Regulation. A local entity provides a regulatory compliance pathway: industry-specific licences (ICP, food, medical devices, etc.) require a local entity.

Operation. Needless to say, a number of business activities such as employment; bank accounts and RMB payment processing; insurance and risk coverage; and the signing of contracts, etc. require a local entity.

Every rule has an exception. In this context, the 'Imported from' exception applies because the 'imported from' status is valued in some premium and luxury segments. However, this is rare and usually unsustainable due to tariffs, logistics costs and competitive disadvantages.

Choosing the right market entry strategy for China depends on your business model and subsequently on industry, risk appetite, control etc. For Danish SMEs, the most common entry model is a joint venture (JV) with a local partner (we would be happy to explain why), but we can occasionally suggest direct export, distributor / agent Partnership, or wholly foreign-owned enterprises (WFOEs) if that fits your business model the best. Representative offices are rarely sufficient for conducting real business.

Market entry options

Although the process can be described in high-level steps for clarity, it is always tailored to your company’s specific profile, goals, and market context:

Screening
We begin by identifying and evaluating potential partners or target companies in China. This includes gathering essential company details, conducting an initial market study, and performing a preliminary screening to assess the viability of the opportunity.
Qualification
For promising targets, we conduct deeper due diligence: collecting a full company profile, initiating direct contact to assess genuine interest, translating key documents, and running a second, more detailed market study to validate strategic fit.
Business planning
Once a target is qualified, we define the roadmap towards commercial operation in China, which results in the company's business charter including business model, go-to-market strategy, and capitalisation approach.
Company formation & onboarding
Execution begins with establishing a local legal entity in China and setting up governance structures. We simultaneously secure intellectual property rights, open a local bank account, set up office and digital infrastructure, onboard local talent, and finalize strategic partnerships or funding.

Beware that the need for company formation occurs earlier than in most western markets.

Timelines differ, of course, depending on your business. But generally speaking out ambition is to follow a timeline that looks like:

Screening: 1 week
Qualification: 4 weeks
Business planning: 6 weeks
Company formation & onboarding: 6 + 26 weeks

There is a major factor that can change the timeline dramatically: Regulation. Subject to industry and product, you may need approvals, which can take anywhere from a few months to years.

To an SME - and even to corporates - expanding into China without a trusted local partner is like navigating in the dark. The (right) partner is most likely the difference between success and expensive failure. A partner in China matters because:

You get local access fast. China runs on relationships (guanxi), not cold calls. A good partner already knows the right distributors, buyers, and officials — helping you skip years of trial and error.
You reduce legal and regulatory risk: From licensing and customs to product approvals, and taxes, Chinese regulation is complex and often city-specific. A local partner helps you stay compliant and avoid costly surprises.
You protect your brand and IP: Working through trusted channels protects your intellectual property and keeps your brand out of the wrong hands - not the least in sectors like design, tech, and food.

As part of our service we introduce external partners (distributors, logistics, etc.) to you. We pre-vet them: We evaluate strategic fit, financial health, operational capacity, cultural alignment and willingness to co-invest resources. No partner moves forward without passing these criteria.

Then we negotiate on your behalf. Eventually, you will have to conduct your due diligence, but we will assist you with all matters such as checking business license & registration, reputation checks, ownership structure, hidden conflicts of interest, etc.

Navigating Chinese regulations is one of the top barriers for SMEs entering the market for reasons such as:

It’s local and fragmented - national rules often vary by province or city.
Laws change quickly and often without much notice.
It can be difficult to know who to talk to — or trust.
Language and legal interpretation. Small missteps in documentation can cause major delays or fines.

But it doesn’t have to be a deal-breaker. The key is understanding the landscape early, and partnering with those who already know it.

We work with ambitious SMEs that require a lean, fast and resource-efficient entry into the Chinese market. Our value proposition is targeted at SMEs, so large corporations will probably select a different approach.

We work with companies from most of the European regions and North America. In terms of export market, our core focus is mainland China, where the real scale and opportunities lie. We do not offer a full service in Hong Kong, Taiwan or the ASEAN region.

We generally work with technology and lifestyle companies, including our own Nordic lifestyle concept store, ‘ileeli’, for affluent Chinese consumers. However, we are largely industry-agnostic. We look for companies with distinctive intellectual property that sets them apart from their competitors. To see examples of the types of businesses we typically work with, please refer to our industry examples.

Industry examples

Some of our solutions are entirely performance-based. For example, we offer SMEs the option of only paying when we deliver a local company ready to operate, complete with operational partnerships and company formation, and even funds where required.

We work on a 'no cure, no pay' model, which means that we don't ask for any upfront payment. Instead, we ask for a minority stake in your Chinese subsidiary. This also means that you are under no obligation to work with us. If you feel that we cannot agree on fair terms, you are free to walk away.

For SMEs to get their business launched in China, there are a few minimal, direct costs you will have to cover. These are typically company formation costs (capped at RMB 40,000) and travel expenses.

When working on no cure, no pay terms, Shaeps will obtain an ownership share in your local subsidiary (or equivalent). The size of the ownership share is subject to a number of variables:

Value-based fairness. The distribution of ownership share should directly reflect the actual risk, capital, operational involvement, and strategic value each party ultimately provides.

Structure uncertainty. The exact setup depends on regulatory requirements, local partner capabilities, and market entry strategy, which only become clear during due diligence.

Scope evolution. The level of each party's involvement often expands or contracts once we begin market assessment and go-to-market planning. The compensation structure needs to flex with this reality.

Risk alignment. The party that ends up shouldering significant operational risk, providing substantial capital, or taking on liability, should be given a stake that reflects that.

We don't quote equity stakes before scoping engagements because it would compromise our ability to negotiate fair terms based on actual deliverables.

In other words, setting an ownership share percentage early locks you or us into a potentially unfair arrangement before anyone knows what the relationship really entails.

Please, remember that our no cure, no pay policy means that you are under no obligation to work with us. If you feel that we cannot agree on fair terms, you are free to walk away.