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How to structure an international expansion plan to open a subsidiary in China safely

Start a international expansion is a strategic step for Brazilian companies that want to reach new markets, strengthen their brand and increase their global competitiveness. One of the best destinations for those with this project is the China, The country is a major economic power and one of Brazil's main trading partners.

However, opening a branch in Asia requires much more than good intentions and business contacts. It takes planning, local presence and specialized support to ensure that the investment generates solid results. And you'll find out how to do all this in this article!

In it, we'll show you how to structure a secure international expansion plan, as well as showing that the right support can be the key to your success. Read on!

What is international expansion?

Before we go any further, it's important to make it clear what international expansion is beyond the surface. 

This is the process by which a company takes its operations outside its country of origin, establishing a physical or legal presence in another market.

Unlike simply importing or exporting, international expansion involves setting up local structures, such as offices, branches or factories. With this, you begin to serve clients, manage suppliers and operate within the rules and particularities of that country.

For Brazilian companies, having a subsidiary abroad brings benefits such as:

  • Proximity to customers and suppliers
  • Greater credibility and competitiveness in the local market
  • Reduced operating costs with logistics and travel
  • Agility in negotiations and inspections

On the other hand, international expansion also requires overcoming cultural, bureaucratic and logistical barriers. These factors make it essential to have a well-defined strategy before taking the first step - and we'll explain how to move forward in the next topic.

How do I start my company's international expansion?

Before investing in an office or branch abroad, you need to follow a few steps to ensure that the process is efficient and secure.

 1. Market research

Before starting international expansion, do market research to understand the potential of the target country. This includes: market size, consumer behavior, competition, opportunities and risks. 

This analysis must be specific to your sector.

 2. Financial planning

After understanding the challenges of the market, start financial planning. Map out all the costs involved, from renting space and hiring local staff to taxes, fees and operating expenses.

3. Legal and fiscal structure

Now to a very important point: legal and tax requirements. 

Learn about the requirements for starting a business, licensing and taxation. In the case of China, for example, there are specific regulations for foreigners that require specialized advice.

4. Logistics and the supply chain

After going through the legal and financial red tape, it's time to dive into the logistics process. 

Start by analyzing suppliers, delivery times and possible logistical bottlenecks. Also assess how transportation will be between the international subsidiary and your headquarters in Brazil.

 5. Local staff and cultural management

Finally, it's time to look at human resources. Having professionals who speak the country's language and know the local business practices is crucial to the success of international expansion. It is also important to prepare your team in Brazil to deal with cultural differences.

It's worth highlighting a common mistake: many Brazilian companies try to manage their operations remotely, making only occasional trips to China. Without a physical presence and constant monitoring, the risk of missing opportunities or suffering losses increases considerably.

China: one of the best markets for international expansion

China is currently the world's second largest economy and occupies a prominent position in Brazilian foreign trade, especially in the following sectors commodities, machinery and equipment, clothing, furniture and technology.

For companies already doing business in the country, opening a local branch or office brings advantages such as:

  • Faster, face-to-face negotiations
  • Frequent visits to suppliers, ensuring quality control
  • Developing new business partners
  • Greater credibility with Chinese customers and stakeholders
  • Reduced inspection and travel costs

However, it is also a challenging market. Cultural differences, language barriers, bureaucratic complexity and time zones can make the process difficult for companies trying to enter independently.

This is precisely where having specialized support makes all the difference.

I want to start expanding internationally to China. What's next?

If your company already does business with China, but doesn't yet have a physical presence in the country, the next step to boosting results is to structure this operation locally.

O Afianci's China Hub was created precisely for Brazilian companies that want to open a branch in China or outsource their operations safely. Shall we take a closer look at how this solution works? 

How China Hub works

China Hub is a service that offers 360° support for your company, including:

  • Corporate office with private rooms, shared rooms or virtual offices.
  • Business address in China for use in contracts and negotiations.
  • Legal and accounting support for starting a business or outsourcing operations.
  • Logistics management and international trading to integrate the supply chain.
  • Hiring Chinese employees and support for expatriation of Brazilians.
  • Bilingual service.
  • Help with cultural adaptation and finding accommodation.

In addition, China Hub provides advice on two operating models:

Outsourcing the operation: your company uses the already consolidated structure of Afianci, without having to formally register in China. In this case, all the costs are reverted to your company in Brazil through the provision of services.

Opening a branch: complete advice on registering the tax residence and legalizing the unit.

Why China Hub is the ideal solution for your international expansion

Proven experience: more than 10 years of own presence in China.

Complete infrastructure: own office in Shanghai and a branch in Hong Kong.

Specialized teambilingual professionals with international experience.

Results historyMore than 9,000 deals have been concluded between Brazil and China.

The China Hub goes beyond a physical space, it is an extension of your company in the largest global market, guaranteeing proximity to suppliers, cost reduction and agility in decision-making.

 For a successful international expansion, count on Afianci

International expansion into China can transform your company's growth, but only if it is done with strategy, local presence and specialized support.

This is because trying to manage the operation remotely may seem cheaper in the short term, but it usually leads to higher costs in the future.

O Afianci's China Hub provides everything your company needs to open a branch and operate locally safely, reducing risks and accelerating your results.

Ready to take the next step in your international expansion?

Get in touch with Afianci.

Contact us

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Rua Dr. Montaury, 2090 | 5th floor Exposição | Caxias do Sul - RS | 95020-190

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Contact

+55 54 9 9623.0929
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