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Where does the buck stop for your China business?

Daryl Guppy
Daryl Guppy • 5 min read
Where does the buck stop for your China business?
A common entry point for foreigners starting a business in China is to establish a representative office. Photo: Bloomberg
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A common entry point for those starting a business in China is to set up a representative office. The office functions as a promotional tool, allowing the business to establish contacts and a footprint.

The representative office is designed to investigate business opportunities but the office cannot undertake transaction business in China. It cannot sell products or receive money for the sales of products or services. A representative office is designed for product marketing.

Despite these limitations, the representative office remains a popular way of exploring China market opportunities.

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