Doing business with China

Anyone doing business with China will encounter fierce competition and special rules for export and import. In this article, you can read more about the current situation, opportunities, and practical considerations.

Latest news

China's exports are growing enormously

In 2025, China had a trade surplus of approximately €1 trillion. This means that China exports more than it imports. The Chinese manufacturing industry is running at full capacity, but mainly for the foreign market. In China itself, the domestic economy has problems. The country has high public debt and is in the middle of a real estate crisis.

China stops exporting dual-use goods to Japan

Since early January 2026, China has stopped exporting goods to Japan. China is not so much concerned with who buys the products, but rather what Japan can use the products for. For example, Japanese businesses that buy sensors, drones, or semiconductors in China. These businesses could potentially help improve Japan's military strength. China wants to prevent this.

China extends export restrictions

Since October 2025, China’s Ministry of Commerce has been following stricter rules for the export of rare earth metals, lithium batteries, super-hard materials such as industrial diamonds, and the associated technologies. In this way, China wants to limit the export of products such as chips. This has consequences for European importers and production processes in Europe. Dutch businesses are also affected by this.

Trade with China

China considers innovation and high-quality technology developed domestically to be increasingly important. The country wants to be less dependent on other countries, especially when it comes to important technology and expertise. The Chinese economy currently relies mainly on exports of goods, manufacturing, and investments. China is focusing its policy on increasing innovation and improving control over its own economy, growth, and security.

At present, China cannot yet do everything itself. That is why the country is sourcing knowledge and technology from abroad, which is driving demand. This is enabling China to build up its own sectors more quickly.

Fierce competition

China has  a population of more than 1.4 billion. It is a massive country with big differences between regions and often dozens of competing parties in a single market..  Chinese government policy often supports local businesses with subsidies. This allows them to develop more quickly, often at a lower cost, certainly in comparison with the costs incurred by Dutch businesses. 

Dutch businesses see this as unfair competition. That is why you cannot win a contract in China on price alone. You win with specialisation, speed, and clear added value.

Opportunities

Chinese imports from the Netherlands are mainly prepared foods, specialised machinery, and electrical appliances. Opportunities exist in areas such as technology, sustainable energy, and healthcare. You will do particularly well if you offer something new, something that China cannot produce itself but needs for the country’s development.

Figures

Figures on trade between the Netherlands and China can be found in the Access2Markets database. This contains general information about imports and exports. With the HS code of your product, you can obtain specific figures for your product group.

• Select the Netherlands under reporters.
• Then select China under partners.

Payment transactions in China 

The official currency is the Chinese yuan renminbi (CNY). China has strict rules for payments from abroad. Your Chinese business partner will first have to ask for permission from SAFE, the State Administration of Foreign Exchange. As a result, payments in China always take longer to process.

It does not matter which method of payment you choose. Advance payments and payment with a Letter of Credit (L/C) are common. Chinese businesses prefer not to deliver goods on credit. 

Financial rules

Familiarise yourself with the rules governing payments in China before doing business. Use these 3 tips to help you:

1. Ensure that all documents are consistent. Chinese banks check contracts and invoices very carefully.
2. Agree clearly on the currency in which you will pay. Will you pay in euros or dollars? You may then be affected by currency fluctuations.
3. Check your business partner's bank details carefully. Changes made just before payment are sometimes a sign that something is not right.

Always ask your bank about the payment method and currency that best suits the purchase or sale. Also check common payment habits and behaviour in China.

Importing from China: documents and costs

Dutch businesses import more products from China than they export there. Of all products from China, approximately two-thirds leave the Netherlands unprocessed. This means the Netherlands is an important gateway to other European markets for Chinese raw materials and semi-finished products.

Always check in advance which documents you need. Check the rules and see if there are any additional costs. This will help you to handle the import of products from China properly.

Exporting to China: rules and product requirements

China is a non- EU country and does not have a trade agreement with the EU. Do you want to export products to China? In addition to an invoice, transport document, and packing list, you may also need extra export documents. You must state 0% VAT on the invoice for your Chinese customer. In your administration, you must prove that the products have left the EU. You can do this with the export declaration, transport documents,and proof of payment, for example.

The Chinese importer usually pays import duties in China. These costs increase the price for your Chinese customer. You only arrange customs clearance for your products in China if you have agreed this in advance. For example, with the Incoterm® DDP.

Product requirements in China 

China sets strict requirements for products (in Dutch). Upon import, the Chinese importer must declare the goods. They must comply with Chinese regulations. If they do not comply, the Customs Administration of the Netherlands will detain the shipment. Products without a commodity code are not allowed to enter the country.

Do you export food products to China? Then you need official registration (in Dutch) if you produce, process, or store this food. Product requirements vary per product. In Access2Markets, you will find information about product requirements, documents, and import duties in China.

Follow the step-by-step plan for exporting to prepare for exporting to China.

Transportation

There are many experienced logistics service providers in the Netherlands who are familiar with customs procedures in China. You can also hire a freight forwarder to ensure that your goods are processed quickly and efficiently and avoid having to worry about customs formalities yourself.

Goods are generally transported to and from China by sea or by rail. Smaller consignments are also sent by air freight. Make clear arrangements with your Chinese business partner prior to shipping. Agree on an Incoterm® and lay it down in writing in the contract.

Services

To provide services in China, you need an official invitation from your Chinese business partner and a so-called Z visa. You can apply for this work visa via the China Visa Application Service Centre. This organisation handles visa applications for the Chinese Embassy in The Hague.

If you bring tools to China for work and will be taking them back with you, you can use an ATA Carnet to bring them into the country. With this goods passport, you will not have to pay import duties, VAT, or a deposit for temporary imports into China and re-imports into the EU.

Use the Overseas Services tool (in Dutch), created by the Tax Administration, to check regulations relating to VAT.

Contacts and business culture

Finding the right suppliers or buyers takes time. Many Chinese people do not speak English so bring your own translator when you meet with business partners. And be aware of cultural differences. To a Chinese company, who you know is more important than your company’s track record. And Chinese people will often prioritise trust over a signed contract. Business deals are often made during dinner or drinks.

Trust and contracts

Even though Chinese people put more faith in trust than in signed contracts, you should always set out agreements in writing. Have contracts reviewed by a lawyer who is familiar with the Chinese legal system.

Always check whether a partner is reliable. Ask the economic network of the Netherlands in China for a company check (in Dutch).