At Harris Sliwoski, we’ve advised hundreds of companies on how to navigate China safely and profitably. The strategies below reflect what’s working in 2025 for companies that want China market access without China market exposure.
Six Smart Strategies for Selling to China Without Being in China
Can you tap into China’s trillion-dollar consumer market—without opening a single office, hiring a local team, or risking your IP? Is it time for you to shed all that overhead—and the risks that come with it—while still profiting from China?
More and more companies are realizing the answer is yes.
Not long ago, I was talking with a Chinese lawyer friend about how foreign companies are rethinking their China strategies—especially those that entered through joint ventures or wholly foreign-owned enterprises (WFOEs). He asked a pointed question:
“If they could do it all over again, would they still go in? Would they still share their IP? Would they do it differently—or stay out entirely?”
What was once a foregone conclusion—having a physical presence in China—is now a strategic dilemma. With slowing growth, mounting compliance burdens, and rising geopolitical risk, companies are asking: How do we keep selling to China without being in China?
This question is especially pressing for companies already in China and now rethinking their footprint. At our firm, we’re seeing a quiet but profound shift: companies are decoupling market access from physical presence.
That means traditional structures—WFOEs, joint ventures, representative offices—are not the focus of this article. Instead, we’ll explore six smart, lower-risk alternatives that companies are using successfully right now.
The End of the One-Path Approach
Entering China used to mean one of three things: forming a WFOE, launching a joint venture, or opening a representative office. Today, none of these are default choices—and for most businesses, they simply aren’t the right fit.
From 2005 to 2015, I estimate our law firm helped set up more than 100 Chinese entities. From 2015 to 2025, that number dropped to fewer than ten—and nearly all of those were before COVID.
Smart companies are finding new ways to generate revenue from China, protect their intellectual property, and avoid the overhead and risk of setting up local operations. Here are six distinct strategies to do just that.
1. Sell Through a Chinese Distributor
For companies selling physical goods without the need for direct customer interaction, partnering with a Chinese distributor can be highly effective. The distributor essentially becomes your customer and your in-market representative.
This approach requires no Chinese entity or local bank account, keeping overhead low. The right distributor can deliver meaningful market reach, but success depends on detailed contracts that define territory, pricing, exclusivity, and performance thresholds.
Most importantly, ensure your intellectual property rights are clearly defined, registered, and enforceable in China before you begin.
For more, see: Managing China Distribution: Best Practices for Protecting Your Interests.
2. Export Directly from Your Home Country
Many companies successfully sell into China without any in-country partner. This model is common in B2B transactions, e-commerce, and niche product categories.
You maintain full control over pricing, branding, and logistics, while avoiding Chinese tax, HR, and compliance burdens. However, preparation is key:
- Register your trademark in China before shipping anything
- Work with a local customs agent to smooth customs clearance
- Plan for after-sales support, warranty claims, and returns
This approach is scalable and low risk if properly structured.
3. License Your IP, Brand, or Technology
For IP-rich companies, licensing offers a way to monetize your assets while keeping operations offshore. You grant a Chinese company the right to use your brand, tech, or know-how—typically in exchange for royalties or fees.
Done right, licensing provides predictable, recurring revenue with low overhead. You can tailor the agreement by geography, product scope, or duration. But structure is everything:
- Define the license scope to avoid “license creep”
- Include audit rights and enforcement tools
- Register and localize your IP in China before negotiating
For a deeper dive, read: China Technology Licensing: A Comprehensive Guide.
4. Sell via Cross-Border E-Commerce (CBEC)
For consumer brands, CBEC offers fast access to the Chinese market via platforms like Tmall Global, JD Worldwide, and TikTok’s commerce channels. These platforms let you sell directly from outside China, often using bonded warehouses or cross-border fulfillment.
CBEC enables rapid entry without a legal entity, but it’s not simple:
- Logistics are complex
- Customer expectations are high
- Platform fees and promotions can quickly add up
For legal context, see China’s E-Commerce Law and Its Foreign Company Impacts.
5. Work With a Chinese Agent or OEM Partner
Manufacturers and B2B sellers often succeed by working with a Chinese agent (who promotes your product) or an OEM (who manufactures it under contract).
These setups can scale quickly and require no local entity—but they demand tight legal controls. Always:
- Use written, enforceable contracts
- Include a robust NNN agreement
- Vet your partners thoroughly—assume nothing
For more, read: What you Need to Know to Sell Your Product into China and China Due Diligence: Not Optional.
6. Establish a Virtual China Presence via Third-Party Logistics (3PL)
For companies seeking greater control over delivery and inventory—without forming a WFOE—working with a 3PL in a bonded zone is a popular option.
This approach supports both D2C and wholesale models. It allows fast, local fulfillment without an in-country footprint and works well alongside CBEC and distributor models.
Just make sure you vet your partners, align your branding and fulfillment, and maintain meticulous customs compliance.
These six strategies are helping companies stay competitive in China without the burden of local operations. The following real-world examples show what success looks like in practice.
Real-World Success Stories
These examples illustrate how companies across industries are succeeding in China—without setting up shop.
Case Study 1: U.S. Machinery Exporter Avoids the Headaches of Local Operations
One of our longtime American clients has exported ultra high-end industrial equipment to China for nearly two decades—without any in-country presence. With a two-stage payment contract structure and all manufacturing handled in the U.S., they maintain full control over IP, pricing, and delivery terms.
This model has held strong even as China’s regulatory landscape has evolved. The company sidesteps Chinese HR and tax obligations entirely by placing the tax burden on the Chinese buyer, as stated in the contract. The result is a streamlined, high-margin operation with zero IP or payment issues.
Case Study 2: Spanish Industrial Materials Manufacturer Expands Without a Footprint
A mid-sized Spanish manufacturer of industrial building products wanted to enter China’s booming construction market—without the overhead or risk of setting up a company there.
They selected distributors in Shanghai, Beijing, and Chongqing, registered their trademarks in China, and used tightly drafted contracts to define exclusivity, performance, and compliance obligations.
The result: fast market entry, strong sales growth, and complete control over IP—without compromising operational flexibility.
Case Study 3: U.S. Financial Software Company Enters China Through Strategic Licensing
A California-based financial software company wanted into China’s fintech space but couldn’t meet data localization requirements.
They licensed their core platform to a large, highly reliable Chinese software firm—a partner that regularly handles complex international deals. The agreement gave the U.S. company tight control over source code, embedded audit rights, and strict geographic limits.
When China tightened local content requirements for government procurement, the Chinese partner was already compliant—allowing continued access to key customers with zero disruption.
What About Traditional China Entry Methods?
Joint Ventures: Still Relevant?
Once considered a powerful way into restricted sectors, China Joint Ventures (JVs) have largely fallen out of favor.
Though they may require less capital than a WFOE, JVs still involve a significant legal and operational footprint. Setting one up demands finding a trustworthy partner, aligning incentives, and building a governance structure that rarely survives intact.
Even well-planned JVs often end in messy breakups: disputes, valuation fights, and IP entanglements are common. And in legal disputes, Chinese courts often favor the local partner.
I’ve often said I love JVs—not because they work, but because we make a fortune setting them up, and another fortune helping clients shut them down.
Occasionally, a JV still makes sense—especially in industries with foreign ownership limits or when a partner is needed for financial reasons. But for most companies, the JV is a relic of another era. For more, read: China Joint Ventures: Everything You Should Know and Joint Venture Jeopardy.
Representative Offices: Still Relevant?
Short answer: almost never.
Rep offices can’t sign contracts, collect revenue, or make sales. Worse, China taxes them in ways that are often arbitrary and difficult to predict. They may still serve niche purposes in tightly regulated sectors, but for most companies, they’re a liability, not an asset.
For more, see: China Representative Offices: Think Before You Leap .
Final Takeaway: Start With the Goal, Not the Structure
Smart companies aren’t all abandoning China—many are recalibrating their approach. They’re selling to China while keeping their IP offshore, operations lean, and exposure minimal.
If your goal is to reach Chinese customers, protect your IP, and operate with legal and strategic confidence—start by choosing the model that fits your objectives, not the one that fit someone else’s assumptions ten years ago.
Ready to Design a More Resilient China Strategy?
Schedule a China Strategy Assessment with our team. We’ll help you build a plan that protects your IP, reduces your exposure, and drives revenue from China—without unnecessary risk.
Reduce your risks. Keep the upside. Let’s build your China strategy—together.
6-3-2-25 UPDATE: After publishing this blog post, I received two emails from clients—both making the same essential point: No matter how you structure your deal when selling to China, make sure you get paid enough upfront to make it worth your while, because there’s a very good chance you’ll never see another cent.
That’s excellent advice, and it holds true whether you’re selling products or services into China.
Both clients rightly pointed out that I hadn’t covered this crucial issue in the original post. And they’re absolutely right. While the post focused on overall structural strategies for selling into China, not the nuts-and-bolts of payment logistics, their feedback underscores a vital reality: payment terms are every bit as important as legal structure when doing business in China.
So here’s what I’m going to do: within the next week, I’ll publish a follow-up post outlining the essential payment terms you should have in place when selling your product or service into China—or internationally, for that matter. Please stay tuned.
