Octagona/Internationalization News/How to do business in China in 2026: commercial strategies, local presence, and new opportunities for Italian companies
How to do business in China in 2026: commercial strategies, local presence, and new opportunities for Italian companies

How to do business in China in 2026: commercial strategies, local presence, and new opportunities for Italian companies

TLDR
  • Doing business in China in 2026 requires a structured local presence; exporting alone is not enough: technical assistance, spare parts, training, and ongoing relationships are crucial for Chinese customers.
  • Second-tier cities such as Chengdu, Chongqing, Hangzhou, Wuhan, and Nanjing offer Italian SMEs less competitive saturation compared to Shanghai, Beijing, Shenzhen, and Guangzhou.
  • The Chinese digital market is autonomous: dedicated strategies are needed for Baidu, WeChat, Douyin, and Zhihu, and simply translating a website is not enough.
  • Compliance is strategic: depending on the product, CCC, GB Standards, and preventive registrations are required, while PIPL and Data Security Law regulate data.
  • The most common mistakes are seeing China as a short-term project, choosing partners without due diligence, neglecting local marketing, and not dedicating internal resources.
Index

Chinese Market 2026: Opportunities and New Scenarios for Italian Businesses

Doing business in China in 2026 is a concrete opportunity for Italian companies, but it requires more advanced strategies than in the past. When talking about China, it is easy to fall into a now-outdated representation, that of a country that competes primarily through low production costs and large manufacturing volumes. Although the industrial sector continues to represent one of the pillars of the national economy, the China in 2026 it is a profoundly different market compared to the one that many Italian businesses knew ten or fifteen years ago.  

A more sophisticated market, oriented towards technological innovation and featuring a rapidly expanding middle class, which requires a structured commercial approach and an increasingly solid local presence. 

In recent years, the Chinese government has promoted a profound transformation of its economic model, with the aim of progressively reducing dependence on exports and public investments, while instead favoring the growth of domestic consumption, technological innovation, and high value-added services. Strategic programs such as Made in China 2025, the Dual Circulation Strategy and the 14th Five-Year Plan they accelerated the development of sectors such as semiconductors, robotics, artificial intelligence, electric mobility, biotechnology, and advanced manufacturing, transforming the country into one of the world's leading innovation hubs. 

For Italian companies, this change implies a substantial evolution in how they approach the market. Today, competitiveness is no longer played exclusively on price or product quality, but on the ability to offer technologically advanced solutions, high value-added services, and specialized skills that can support the modernization of Chinese industry. 

At the same time, the growth in disposable income and the expansion of the middle class have also profoundly changed the consumer market. The Chinese consumer is increasingly informed, digital, attentive to sustainability, and willing to pay a premium price for products that offer quality, safety, design, and reliability. This scenario continues to favor the positioning of Made in Italy, particularly in the following sectors: 

  • Instrumental mechanics and automation 
  • Furniture and design 
  • Premium food 
  • Luxury and fashion 
  • Industrial technologies

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Doing business in China means building a presence, not just exporting

In recent years, the Chinese market has become much more competitive. The presence of highly qualified local players, the entry of new international competitors, and the growing evolution of customer expectations require a much more structured approach than simply shipping products from Europe. Doing business in China means first of all investing in building continuous business relationships, understanding the decision-making dynamics of local companies, and consistently monitoring the market. Chinese customers look for reliable partners capable of guaranteeing: 

  • Timely technical support 
  • Fast responses 
  • Availability of spare parts 
  • Training and after-sales support

For this reason, after an initial export phase, many companies choose to progressively strengthen their presence through representative offices, local sales staff, branches, or partnerships with qualified Chinese operators. This type of investment makes it possible to increase control over the sales network, improve customer service, and acquire a much deeper understanding of market dynamics. 

Another distinctive element concerns the decision-making process. Commercial negotiations in China can take longer compared to other markets, as supplier evaluation is not based exclusively on economic aspects, but also involves reputation, reliability, the ability to guarantee continuity, and the strength of the relationship in the long term. Investing in trust-building therefore represents a strategic element just as much as investing in the product. 

Second-tier cities in China: the best opportunities for Italian SMEs in 2026

When planning a project to business development In China, one of the most common mistakes is focusing attention exclusively on major coastal metropolises such as Shanghai, Beijing, Shenzhen, or Guangzhou. Although these cities are important economic and financial hubs, their level of maturity entails very high competition, significant operating costs, and a well-established presence of international operators. 

Why second-tier cities are more interesting for Italian SMEs 

In recent years, the Chinese government has promoted development policies aimed at rebalancing the country's economic growth, encouraging investment in the inland provinces and so-called tier-two cities. Urban centers such as Chengdu, Chongqing, Hangzhou, Suzhou, Wuhan, Hefei, Nanjing, and Xi'an are recording particularly interesting growth rates thanks to the development of new industrial areas, modern infrastructure, universities of excellence, and hubs dedicated to technological innovation. 

 For many Italian companies, these cities currently represent extremely interesting markets. The presence of a rapidly expanding industrial fabric, combined with lower competitive saturation compared to large metropolises, makes it possible to position themselves as technological partners in sectors such as: 

  • Automation and mechanics 
  • Industrial components 
  • Industrial Machinery 
  • Environmental technologies 

 Chow to choose the right city for your business 

The choice of the geographical area should always be the result of an in-depth analysis that takes into account: 

  • The production supply chains present in the area 
  • The concentration of potential customers 
  • The available logistics and infrastructure 
  • Investment incentive policies 
  • The presence of industrial clusters consistent with one's sector 

Digital marketing in China: WeChat, Baidu and Douyin for doing business in 2026

One of the aspects that most distinguishes the Chinese market from the European one concerns the role that digital tools play throughout the entire purchasing process. In many Western countries, digital mainly represents a communication or lead-generation channel; in China, however, it constitutes the core of the entire relationship between company and customer.

The Chinese digital ecosystem: a world of its own 

Over the past decade, the country has developed a digital ecosystem that is largely autonomous from major Western platforms. Search engines, social networks, marketplaces, payment systems, and messaging tools follow their own logic and require dedicated strategies. Consequently, replicating marketing activities used in Europe within China rarely yields satisfactory results. 

The main platforms to monitor are: 

  • Baidu - main search engine 
  • WeChat messaging, content marketing and payments 
  • Douyin – video marketing and brand awareness 
  • Zhihu – technical insights and industry credibility 
  • Vertical portals – B2B lead generation by industry

The digital behavior of B2B buyers in China 

Even in the B2B sector, buyer behavior has profoundly changed. Even before contacting a potential vendor, decision makers gather information online, compare available solutions, consult technical articles, check the company's reputation, and analyze success stories published on digital channels. For this reason, an online presence now represents one of the primary elements through which a company is evaluated by the market.  A website translated into Chinese is not enough: it must be designed taking into account local browsing habits, the technical requirements demanded by Chinese search engines, and user expectations. 

How to localize content for the Chinese market

Localization is not solely about language. Content must be adapted to the informational needs of the Chinese audience, highlighting the elements that the market considers most relevant: 

  • Technological skills and know-how 
  • Use cases and references 
  • The Company's Reliability and Stability 
  • Production capacity and delivery times 
  • International certifications 
  • After-sales service 

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Regulations and certifications for exporting to China: CCC, GB Standards and PIPL 

When tackling the Chinese market, regulatory compliance is often perceived as a mere administrative requirement to be completed before product commercialization. In reality, compliance represents one of the strategic elements that can determine the success or failure of an internationalization project. 

The Chinese regulatory framework: what has changed in recent years 

In recent years, China has progressively strengthened its regulatory framework, introducing increasingly strict rules regarding: 

  • Product safety and quality 
  • Consumer protection 
  • Intellectual property 
  • Personal data management

At the same time, the authorities have stepped up customs controls and compliance checks on imported goods. For Italian companies, this means that project planning cannot be limited to commercial aspects: even before identifying distributors or launching marketing activities, it is essential to verify whether the product is subject to specific certifications, authorizations, or registrations required by Chinese regulations. 

Certifications and regulatory requirements for exporting to China 

Depending on the industry, different regulatory requirements may apply: 

  • China Compulsory Certification (CCC) - mandatory for numerous product categories 
  • GB Standards (Guobiao) – national technical standards on safety, quality, and performance 
  • Preventative recordings – necessary for regulated sectors such as medical, food, cosmetics, and chemicals 
  • Dedicated authorization procedures – requests for products subject to specific checks by the competent authorities

Privacy and data: the new digital regulations to know 

Digitization has also introduced new areas of focus. Two regulations in particular impose specific obligations on companies operating in the country: 

  • Personal Information Protection Law (PIPL) – regulates the processing of personal data 
  • Data Security Law – regulates the cross-border transfer of information

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Why many Italian businesses fail to consolidate in the Chinese marketerrors to avoid

Every year, numerous Italian companies start commercial activities in China with very high expectations, attracted by the size of the market and the potential of local demand. However, not all of them manage to transform early opportunities into a stable and profitable presence. In most cases, the difficulties do not depend on product quality or the competitiveness of the offering, but rather on the approach with which the internationalization journey is tackled. 

I main mistakes to avoid 

The most common difficulties concern four critical areas: 

  • Consider China a short-term project 
  • Choosing local partners without adequate due diligence 
  • Underestimating local communication and marketing 
  • Do not dedicate specific internal resources to the project 

Doing business in China requires a long-term vision 

Building an effective commercial presence requires continuity, investment, and planning that takes into account the time needed to develop relationships, gain brand awareness, and understand market dynamics. Companies that abandon the project after a few months because they do not achieve immediate results rarely manage to capture the country's true potential. 

How to choose the right local partners 

Relying exclusively on the first available distributor, without adequate selection and due diligence, can jeopardize the development of the entire project. It is essential to identify partners who have: 

  • A sales network consistent with its industry 
  • Specific expertise in the target market 
  • The ability to share the company's growth objectives 

Local marketing and internal resources: two often underestimated levers 

Many companies invest in participating in international trade shows but fail to follow up with a structured local marketing strategy, digital presence, or lead generation efforts. At the same time, international expansion requires cross-functional expertise and ongoing management of commercial, logistical, and regulatory activities. To be successful, it is therefore essential to:

  • Develop a structured digital presence on Chinese channels 
  • Invest in ongoing local lead generation efforts 
  • Allocate specific internal resources to the project 
  • Coordinate the various company departments involved

Strategy for the Chinese market: how to build a stable and profitable presence 

Building an effective presence requires a clear roadmap, in which each phase of the project is supported by measurable objectives and a progressive consolidation of activities. In most cases, the journey begins with a’in-depth analysis of the market and the competition, continues with the identification of the most promising segments and the selection of qualified partners, to then evolve towards an increasingly structured commercial presence. 

Throughout this process, it is essential to constantly monitor performance using key indicators such as the number of qualified leads generated, the conversion rate of sales opportunities, the average order value, growth in international revenue, and the level of customer loyalty. These KPIs allow you to assess the effectiveness of the initiatives undertaken and adapt your strategy to market changes. 

When to structure a more solid presence in China 

As their revenue grows, many companies choose to further strengthen their presence by opening a sales office, the hiring of local staff hello incorporation of a subsidiary company. These decisions should not be driven solely by revenue growth, but by a comprehensive assessment of growth potential, the level of service required by customers, and medium- to long-term objectives. 

In a complex and highly competitive context like China, success is rarely the result of isolated initiatives. On the contrary, it stems from the ability to build a coherent strategy supported by data, expertise, and a deep understanding of local dynamics. It is precisely this approach that enables Italian companies to do business successfully in China, turning the market’s complexity into a concrete opportunity for international growth.

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China Experience: The Future of Industrial Manufacturing 

Method, localization, and strategic vision are the true critical success factors today. To concretely support companies in a growth path towards the Chinese market, the group Bonfiglioli Consulting has developed the program China Experience, an immersive initiative that combines Visit local industrial excellences, Meetings with Chinese managers and entrepreneurs and strategic training moments guided by market experts. 

The path is designed to offer a direct and concrete view of how companies operate in China today, allowing participants to understand competitive logic on the ground, Organizational models and innovation dynamics. A high-value opportunity for those who want to accelerate their market understanding and quickly translate it into more informed operational decisions. 

👉 Access the China Experience and turn China into a concrete business opportunity 

Frequently Asked Questions

How to do business in China in 2026 and where to start for an Italian company?

We start with an in-depth analysis of the market and competition, then identify the most promising segments and select qualified local partners. In parallel, we build a digital presence on Chinese platforms such as Baidu, WeChat, and Douyin. The journey is guided by measurable goals and KPIs, not isolated initiatives.

What certifications and regulations are required to export products to China?

It depends on the sector. Many products require China Compulsory Certification (CCC) or must comply with GB Standards (Guobiao) regarding safety, quality, and performance. Medical, food, cosmetics, and chemical industries often require preventive registrations or dedicated authorization procedures. For personal data, the Personal Information Protection Law (PIPL) and the Data Security Law apply.

What are the best Chinese cities to sell to an Italian SME, in addition to Shanghai and Beijing?

Second-tier cities like Chengdu, Chongqing, Hangzhou, Suzhou, Wuhan, Hefei, Nanjing, and Xi’an offer excellent opportunities. They have expanding industrial areas, modern infrastructure, universities and technology hubs, with less competition and lower costs than coastal metropolises. They are attractive for automation, components, machinery, and environmental technologies.

Which digital platforms should be monitored for B2B marketing in China?

The main ones are Baidu as a search engine, WeChat for messaging, content marketing and payments, Douyin for video marketing and brand awareness, Zhihu for technical insights and vertical portals for B2B lead generation. A website translated into Chinese is not enough: it must be designed according to local navigation and the requirements of Chinese search engines.

How to find and choose a reliable distributor in China?

The selection must include proper due diligence, verification of the existing sales network and its consistency with the company’s sector. The partner must have specific market expertise and share the company’s growth goals. Relying on the first available distributor is one of the most common mistakes and can compromise the entire project.

When is it advisable to open an office or a subsidiary company in China after the export phase?

It makes sense when an overall assessment indicates potential for development, the level of service required by customers, and medium- to long-term goals that justify the investment. Just growing the turnover is not enough. Options include a sales office, local staff, or a controlled company, which increase control over the sales network and improve service.

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