How to Start Business in China for Tech Startups


Technology is now changing the world. For people with technical experience and background, one of their dream maybe start their own business. Many of you do know that China has become the world's second largest economy, constituting a super driving force as to the global economy and technological innovation. So China is becoming one of the perfect destinations, and below are some basic steps for tech startups to start business in China.

Know Your Target Customers

Often, many tech startups which focus on technology upgrade may not take into consideration about why and how their target customers use the product. All they care about is jumping in the development from the get-go. It’s much easier to get busy instead of being premeditated, prudent, sober. However, investing in the preparation stage without a right direction will only bring disproportional results down the road.

Which problem is the product really trying to solve? And who are the real target customers? They early adopters are the ones who truly value the product and have a specific burning pain your product is solving. So tech startups must understand the needs from their users who spread the word about your product even if it’s imperfect, and improve technology based on their needs. They’ll only grow internationally if they start by a solid foundation that attracts a tiny set of early adopters. Without them, there’s no vitality.

Develop Minimum Viable Product

Once you verified your idea and collected feedback, you can start to develop your minimum viable product, also called MVP. Developing an MVP is a great way to gauge demand for and interest in your product before investing huge amounts making it a reality.

Create a list of all must have features which are the optimum requirement for your customer and which addresses the competitor products based on market and user research, and then finalize your product and test your beta version. Before launching the MVP do proper testing so that user at least gets the minimum features required of the product.

Protect Intellectual Property

Once you go into the funding world, you will have to tell potential investors, who may or may not be connected to competitors about your product, sharing all sorts of details.

So it’s important to check if there are similar technology already registered, and if not, register your technology before you get your initial funding, especially when you start business in China. Without any filings, you really have no protection against someone who copies your product, or files first—the way it is in the China, where first-to-file gets the patent.

Find Local Partner

Foreign tech startups would better not start business in China without a proper guide or partner. Going into an unknown environment, especially one notoriously difficult for foreigners like China won’t do much to improve the average success rate.

A local partner can navigate the complicated regulations and legal processes and, most importantly, deal with China's government directly. A good partner is an incorporated company that is well-connected in the Chinese market, and has the network necessary to get things done in China. If you want to know more about how to find a trustworthy local partner in China, please refer to 5 Reasons Why Foreign Startups Should Find A Partner To Start Business in China

Raise Venture Capital

This is a major part of any tech startup development. Nobody invests in just an idea. Professional investors are looking for a solid team, a proven market, and demonstrated traction. The more of that you have before you go looking for money, the better off you are.

But even if you already have the MVP and get traction, you still need to make a perfect pitch to attract investor. If you are interested in how to make a successful pitch that attract investors, you can take a look at our previous article: How to Give a Successful Pitch That Helps You Start Business in China


WTOIP Global provides comprehensive entrepreneurial and legal services to our clients, helping foreign tech startups start business in China with no legal hurdles. Services include preliminary project feasibility study, potential business partner pitching, one-stop intellectual property solution plan, local incorporation registration and application for government funding. If you are interested in starting business in China, just contact us.

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