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Is my company ready to enter the Chinese market?

When you are looking at entering the Chinese market you first need to look inward and asses if you and your organization are ready to make this step. What are the influencing constructs for high-tech SME that intend to increase their internationalization readiness for the Chinese market? What can companies do to prepare themselves for entering the Chinese market. 

Internationalization Readiness 

In recent years, the Chinese government has accelerated its high-tech industry, resulting in a market size of 20.6 trillion yuan in 2016. Therefore, Dutch high-tech SME intend to capitalize on this opportunity through internationalization to China. In order to expand successfully, high-tech SME should assess their internationalization readiness. Brainport Development together with the University of Tilburg did research on what constructs influence internationalization readiness of high-tech SME that intend to internationalize to the Chinese market.  


This led to a model for internationalization readiness that consists out of three levels: employee level, organizational level and industrial level. Firstly, on an employee level the company can look at how motivated its staff is to enter the Chinese market, how much commitment do they have. This in combination with the China experience of the staff. 

Secondly, the main influence comes from an operational level. How complex is your entry strategy to China? How developed is your network? On both personal relationships and marketing efforts. What financial means do you have available? Are you able to adapt quickly to the Chinese market? By organizational learning and knowing the cultural differences. How strong is your competitive advantage? What is your company's innovativeness and how well is your IP protected? 

Finally, on an industrial level look at how innovative your industry is in China and how developed the local ecosystem is to support you. Take a critical look in the mirror and asses which constructs your are strong at and which ones you can possibly improve upon. 

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China Specific 

When looking at international readiness for the Chinese market a few constructs stand out specifically. Financial means: don't expect to be profitable withing the first three years. Have a long-term vision. Competitive advantage: the Chinese market is highly competitive and fast paste. Ensure that you have something unique to offer that can be protected and maintained. Network: invest in building up a strong network in China, this takes time. Both public organizations and private consultants can assist you with analyzing you companies' readiness to enter the Chinese market. 


Brainport Development

We want the region to grow economically. Brainport Development helps to give advice, share knowledge and attract and connect organisations, companies and talents by means of (inter)national promotion, among other things.

Brabantse Ontwikkelingsmaatschappij

BOM is an economic development organisation that is committed to the further growth of companies in Brabant. Together with partners, BOM offers promising companies access to capital, knowledge, talent, market and facilities, focused on economic and social issues.

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Doing business in China