Over the years, Aquatech Online has explored many aspects of doing business in China, from the prospects for international water companies entering the water market to negotiating social media outreach, from handy hints for businesses keen to explore the country, to the importance of establishing local connections ‘on the ground’.
China is an ever-evolving market, but one that remains open to international companies. Aquatech Online talks with Mathijs de Boer, International Desk Manager Asia, for Rabobank Commercial Banking, to find out more about the current climate for international companies looking to do business in China.
China remains open to international businesses, although the nature of this openness has evolved significantly. As China’s economy has matured and its population has begun to age, the country increasingly prioritises sectors that contribute advanced knowledge, innovation, and long-term value.
“China has shifted from being primarily a low-cost manufacturing hub, toward a model emphasising innovation and technological development. Once known for the label, ‘Made in China’, the country is now positioning itself as ‘Developed in China’,” says de Boer.
This shift means that international companies active in high tech, environmental technologies, life sciences, and other specialised knowledge industries often find a more receptive environment.
“However, foreign companies that still view China exclusively as a cheap production location may encounter more challenges than before. Geopolitical tensions, especially in high-tech fields, have also created a more complex operating environment,” he adds.
This shift means that international companies active in high tech, environmental technologies, life sciences, and other specialised knowledge industries often find a more receptive environment.
“However, foreign companies that still view China exclusively as a cheap production location may encounter more challenges than before. Geopolitical tensions, especially in high-tech fields, have also created a more complex operating environment,” he adds.
“Nevertheless, China remains willing to collaborate with international partners who contribute meaningfully to its future development.”
According to de Boer, important market opportunities exist in sectors aligned with China’s national development priorities, including:
He explains: “China’s water sector offers particularly strong potential due to the country’s long-standing water quality challenges, rapid urbanisation, and climate-related risks.”
Below, de Boer outlines some of the current opportunities:
International companies that bring advanced expertise and demonstrate a cooperative approach continue to find substantial opportunities in China’s water-related industries.
While China’s national direction is usually clear – driven by central government strategies local implementation can vary significantly.
“Local authorities sometimes lack the financial or administrative capacity to fully achieve national goals, making local partnerships essential,” de Boer says, before expanding on some of the key challenges:
China offers a large, highly educated workforce and world-class infrastructure and supply chains. The main challenge often lies in retaining skilled employees, ensuring they understand and align with headquarters’ standards, and fostering cross-cultural collaboration.
The regulatory landscape for intellectual property (IP) has strengthened in recent years, reflecting China’s own need to protect domestic innovation.
“At the same time,” de Boer explains, “China’s rising middle class demands higher-quality food, daily goods, environmental standards, and public services, which creates opportunities for foreign firms offering premium solutions.”
Visible progress has been made in areas such as renewable energy, energy efficiency, and air quality improvement. However, many small and mid-sized companies still lag behind, which presents opportunities for international companies to support China’s energy and environmental transition.
China remains broadly welcoming to international firms, particularly those that bring innovation, advanced skills, or technologies aligned with national priorities.
“However,” de Boer states, “there is an increasing preference for foreign companies to work with local suppliers and embed themselves within China’s domestic supply chains.”
He believes that international companies must carefully assess:
A thorough understanding of Chinese regulations and policies is essential. Compliance rules are strict, and mistakes can lead to serious consequences. Foreign companies should therefore consult local experts, legal advisers, and sector specialists before entering the market.
“China should not be viewed as a single homogeneous market,” he explains. Adding that there are significant differences between regions in terms of:
“Choosing the right province or city, ideally close to key clients, suppliers, or industrial clusters, will greatly improve an international company’s chances of success.”
China offers several distinct advantages:
China’s work culture emphasises perseverance, efficiency, and rapid problem-solving. Individuals work autonomously, but with a shared commitment to collective goals, enabling companies to implement projects quickly and effectively.
“Overall, China continues to offer substantial opportunities for foreign companies,” de Boer concludes. “Especially those that align with strategic national goals, invest in long-term partnerships, and bring unique technologies or expertise, including in the water technology sector.”
