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What risks do I take and how can I protect my company against them?

When you decided to enter a new market, there are many unknowns ahead of you and along with opportunities comes risks. By knowing the potential risks that you may encounter helps you to prepare yourself before entering the market. 


IMVO stands for International Corporate Social Responsibility, it covers the guidelines of the Organisation for Economic Cooperation and Development (OECD) and UN Guiding Principles on Business and Human Rights. These guidelines cover among others supply chain responsibility, human rights, child labour, the environment and corruption. A good place to start is the MVO Risk Checker, it will give you an overview of the risks associated with your product and target country. For more information you can check the RVO website on IMVO in China or have a look at their video's

Currency Risk 

When doing starting to do business with China you will soon find out that the payment system in China is different from that of the western world. There are several restrictions on the transfer and exchange of the China Yuan. Be aware that making payments in China will always require more time and knowledge. For more information check the RVO website on the Chinese payment system, the KVK website on currency risks and Atradius on the Dutch State Business credit insurance. 


China has a large, unique, and complex legal and accounting system, it may be difficult for a foreign company to learn and adapt. In this case, we recommend you consult legal and accounting advisors before entering the Chinese market. As we have recommended before, you can get legal advisors either from RVO or directly consult consultants like Buren Law and Crowe who is specialized in China. 

Know Your Partner 

Potential partners in China will be fare away and will operate in a different system from what companies are used to in Europe. Often it can be difficult to assess the reliability of a Chinese partner. For this there are several tools available. First the EU SME centre published a booklet on due diligence: “Information on essential documents that need to be checked and how to go about it, introduces the most common scams and ways to avoid falling for them as well as presenting best practices and a list of authorities able to provide help.” The RVO has a section on corruption and how to deal with it. Finally Datenna offers China Economic Intelligence to give more insight in Chinese companies' ownership structure. This is especially useful to assess the role of the Chinese government in a potential partner. 



We build data platforms for government intelligence gathering and decision-making. Our SaaS platforms on investment screening, innovation intelligence and export control, support governments in their decisions when it counts the most.


Buren is an internationally oriented corporate law firm with offices in Amsterdam, Beijing, The Hague, Luxembourg and Shanghai and has a diversified business practice. Its rich heritage dates back to 1898. Today, the firm has more than 70 lawyers, notaries and international tax lawyers providing a full range of services to domestic and international clients who conduct business nationally and globally.


Crowe Foederer is a midsize accountancy and tax firm with 8 offices throughout The Netherlands. Their professionals are very experienced in working in an international setting and have all the knowledge required to structure operations and investments in a manner that connects well to the local and international markets and the situation in your home country.

EU SME Centre

The EU SME Centre is a European Union initiative that provides a comprehensive range of hands-on support services to European small and medium-sized enterprises (SMEs), getting them ready to do business in China.


RVO facilitates entrepreneurship, improve collaborations, strengthen positions and help realize national and international ambitions with funding, networking, know-how and compliance with laws and regulations.

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Doing business in China