Basically, there are two main ways to export goods to China:

• General trade: the traditional way, exporting to China via importers, distributors, agents based on the ground; or selling directly to the Chinese client. Depending on the type of product, general trade might be more time-consuming as products may need to obtain approval/certification before being allowed to enter the Chinese market – a process that could take up even years!
• Cross-border e-commerce: selling goods via specialised Chinese e-commerce platforms, provided to the Chinese consumer directly from Europe (B2C), or through a bonded warehouse in China (more details in the “CBEC” section of FAQs).

While there is no one-size-fits-all approach, many SMEs choose to adopt a gradual approach by first testing their products in the Chinese market via cross-border e-commerce, as it is “easier” and requires upfront costs. This method, however, has some limits and certainly lower margins: on the long run, general trade will be the best option.

Another approach is processing trade, through which foreign companies export raw materials, components, or semi-finished goods to China, where they are processed or assembled into finished products (by a local partner or by its own subsidiary) and then re-exported overseas. This model leverages China’s extensive manufacturing capabilities and preferential policies, such as tax exemptions on imported materials used in the production of re-exported goods. It is commonly employed in industries like electronics, textiles, and automotive, enabling companies to minimise production costs while accessing global markets. However, it requires strict compliance with Chinese customs and trade regulations.