It is a much discussed topic in recent weeks that American companies taking their business to China has been. Product recalls and unsafe production practices have caused a public backlash that may express itself throughout the next few months, but considering the fact that none of the big players are vowing to pull their production facilities out of that region, what is it that they know which you might not yet have caught onto?

Moving business operations to China and profiting from the country’s explosive growth and lack of governmental red tape and regulations is such a surefire guarantee of profit that not even public opinion and high profile recalls will dissuade the industry’s heavy hitters from continuing on with their business practice. As a small business owner, you too can profit from this kind of expansion simply because of the low wages and lack of regulatory oversight that make China a powerhouse for United States business interests.

While it may appear odd to have items manufactured in China by American companies, consider that the majority of these goods are not imported to the United States. Instead, they are being sold to the Chinese consumer and thereby tap into a market that heretofore was all but closed to a business performing the same operations in America and hoping to export the goods to China. This actually benefits the small entrepreneur more than it does the big Fortune 500 Company in that the entrepreneur is able to move quickly in a rapidly changing corporate landscape in China while the large company will require approval from a number of departments and shareholders.

Of course, there is more to growing your business with the help of outsourcing and offshoring to China than simply setting up shop and hanging a sign in a shop window. For example, while governmental red tape and hurdles to be overcome are much reduced when compared to the United States, local taxing agencies are not so quickly vanquished. As a matter of fact, those who believe the American tax system to be Byzantine have not experienced the Chinese system such as it applies for the foreign business entity. Meticulous adherence to the tax codes is vital for the survival of your business, and a failure to understand the rules and regulations will most likely lead to your losing a lot more money than you think possible. Get the help and counsel of qualified professionals to ensure you are not hemorrhaging tax money where it is not needed.

Be wise when selection the location for your business in China. Law enforcement and interpretations of laws and regulations vary from city to city, and you will do well to only move your operations to an area that will favor your business. This may be accomplished with the help of a Chinese partner who is aware of the local laws and their enforcement.

The China import market is of increasing interest to many UK small businesses as the China economy continues to expand. But freight forwarding from China is something that UK businesses see as something of a mystery, compared with freight forwarding to and from Europe and other more familiar countries. It is important to take advice from a freight forwarding company with experience of China import as China is expected to continue to be the leading factory of the world, with its efficient manufacturing, low labour costs and high quality international freight infrastructure.

Although labour costs in China are rising, they remain competitive and, with the possible exception of apparel, it is predicted that China will further increase its share of global production. In particular, there is ample scope to increase exports to Europe, where levels of China import do not yet match the US levels. As China’s economy is growing so fast, there are many infrastructure changes happening that affect freight forwarding and other freight services. This means that it can be hard for the business owner to keep up to date on all the changes that may affect his own international freight.

There is already a capacity shortage problem in Shanghai, so we are now seeing expansion of deepwater ports in Ningbo, especially after the recent opening of the Hangzhou Bridge. The port of Shanghai is fighting against its flagging growth and is implementing strategies designed to turn Shanghai into a major Asian hub to rival Hong Kong and Singapore. This will be achieved partly by establishing feeder ports along the Yangtse River, establishing a regional feeder network with Shanghai as the centre of a massive international freight hub.

This international freight development ties in with the government’s plan to create a year round shipping channel from Chongquing to the sea. By summer 2009, when the Three Gorges Dam is completed, the average river journey time between Chongquing and Shanghai will be cut in half, to about seven days. And this will be complemented by a billion dollar riverside railway project that will slash the journey time between Chonngquing and Shanghai from 41 hours to 10.

These kind of huge infrastructure projects are happening all over China and revolutionising the options for international freight forwarding from China. UK businesses that are entering the China import market should make sure that they choose a freight forwarding company with know-how, up-to date knowledge and an experienced local network of freight forwarding agents. Not all shipping companies can provide this winning combination.

The importance of a strong local freight forwarding network cannot be emphasised enough, when it comes to China import, so choose your freight company wisely. In Chinese culture, conducting business is based on trust and relationships, therefore it is vital to appoint a freight forwarder or shipping company with a network who have already established this trust.