China Access: The Opening of the Distribution Sector

Its impact on how foreign companies do business in China


The regulatory climate governing foreign participation in China’s distribution sector has improved markedly since December 2004 as longstanding barriers to efficient operations by foreign companies are finally removed.

For the first time in the history of the People’s Republic of China (PRC), foreign companies are now permitted to engage in wholesale and retail business throughout the country without the requirement for a local partner. Foreign companies are no longer required to maintain an artificial separation between their distribution channels for imported and locally-made goods. Smaller foreign investors will now find China a more cost effective market to enter and thrive in, while larger corporations are able to integrate existing China operations into their global distribution networks like never before.

This paper explores how this most recent chapter of China’s integration into the global economy is changing the way foreign companies do business in China and how your company can take maximum advantage of this major new area of opportunity.