If you’re an entrepreneur in a developing country looking for your next move, China deserves serious consideration. While Western media often focuses on challenges, the reality is that China offers a unique combination of affordability, infrastructure, and market access that’s hard to match elsewhere.
The Economic Reality
For entrepreneurs from developing countries, China presents a compelling value proposition. Cities beyond the top tier—places like Chengdu, Hangzhou, Wuhan, or Xiamen—offer modern infrastructure, reliable utilities, and business services at costs well below what you’d find in comparable Western cities. You get first-world infrastructure without first-world prices.The cost of hiring talent, renting office space, and manufacturing products can be dramatically lower than in Western markets, while still providing access to skilled workers and established supply chains. For someone used to working with limited resources, China’s combination of affordability and capability creates opportunities that simply don’t exist elsewhere.
Market Access and Scale
China isn’t just affordable—it’s massive. With 1.4 billion consumers and a rapidly growing middle class, the domestic market alone offers scale that most countries can’t match. If your business model works in China, you’re potentially reaching more customers than the entire population of most countries.The country’s infrastructure for e-commerce, logistics, and digital payments is world-class. Systems like WeChat Pay and Alipay have created a seamless digital economy. The logistics networks can get products from factory to customer faster than in many developed countries.
The Manufacturing Ecosystem
China’s manufacturing ecosystem is unparalleled. Whether you’re creating physical products, need prototypes, or want to test production runs, the concentration of suppliers, factories, and specialized craftspeople creates possibilities that don’t exist elsewhere. You can iterate on product designs in days rather than months.For entrepreneurs looking to build hardware products, consumer goods, or anything physical, being close to manufacturing means faster development cycles, better quality control, and the ability to pivot quickly based on market feedback.
Practical Considerations
Success in China requires cultural adaptation and language skills—or reliable local partners who have both. The business environment operates differently, with relationships (guanxi) often mattering as much as contracts. Understanding local customs, building trust networks, and navigating regulatory requirements takes time and effort.
Different cities have different specializations and advantages. Shenzhen is the hardware capital, Hangzhou is strong in e-commerce and tech, Guangzhou excels in trade and manufacturing. Research which city aligns with your business model.Visa and business registration processes vary by city and business type. Many entrepreneurs start with trade visas or partnerships with local companies before establishing their own entities. Legal structures for foreign businesses require careful planning and often local legal guidance.
Is It Right for You?
China isn’t a magic solution, but for entrepreneurs from developing countries who are:
Comfortable navigating bureaucracy and cultural differences
Looking to manufacture products or access supply chains
Wanting to tap into a massive consumer market
Seeking better infrastructure than their home country offers at reasonable costs
The opportunity is real. The combination of affordability, infrastructure, market size, and manufacturing capability creates possibilities that are difficult to replicate elsewhere.The key is approaching it with realistic expectations, doing thorough research, building local relationships, and being prepared to adapt to a different business culture. For those willing to put in the work, China can offer a pathway to opportunities that might be out of reach in more expensive markets or less developed ones.
