Selling services from abroad to clients in China (regardless of whether these are domestic entities of foreign-funded entities) typically involves cross-border delivery, where the service provider remains outside China while offering services remotely. Common examples include consulting, legal services, software-as-a-service (SaaS), education, and creative services like design or IT development. To facilitate this, companies often leverage digital platforms, international payment systems, and virtual communication tools.

However, selling services from abroad also has significant tax implications, as your Chinese client will withhold a sum to be paid to the Chinese tax authorities on your behalf (see FAQ “Should I pay taxes in China if my company, based in Europe, provides services to a client based in mainland China?“). Furthermore, in order to be able to pay for the services, the Chinese client will also need to apply to local banks for converting RMB into foreign currency, a process which may not always be straightforward. Finally, building trust with Chinese clients through localisation of services (e.g., language, cultural adaptation) and maintaining reliable delivery are also critical for success.