There’s no need to rush into setting up a company before you know where your market is, before you assemble a team that can support your business and before you have enough business to justify a subsidiary in China.
Setting up a remote subsidiary is a big liability: it takes time, money and management resources. After it is established, its management poses an even greater challenge – and requires specific “China” management expertise. For an SME that is just entering the China market, subsidiary management can be a lot to handle and will normally come at the expense of critical factors such as the establishment of stable sales and a proven business strategy. This is a classic chicken-and-egg dilemma; the best answer is often OUTSOURCING services.