Traditionally Malta has had a strong trading relationship with China and was the first Western European country to establish diplomatic relations with China in 1972.

With a growing middle-class and the Chinese government striving to move to a more consumer-driven economy, there are significant opportunities for Maltese companies to grow their business in the world’s largest country.

We have around 1,000 manufacturing companies in Malta, producing a wide range of goods from car parts to soft drinks, all of which represent opportunities to export to China.

There are other strengths across a range of sectors where Malta has real competitive advantage that businesses can build on as they look to the Chinese market. From maritime to education, healthcare, engineering, languages and many others, Maltese companies can exploit their products and expertise in China.

Beyond the excellent opportunities that exist in China, the double taxation agreement signed between our two countries in 2010 means that Maltese companies doing business with, or in China have an excellent platform to do well. As a result they can go into the market offering very competitive prices.

As with any new market, it is important to be clear on the options companies have when it comes to establishing presence in China. There are four main options that companies should consider.

A representative office is the most basic set up you can have but it does allow you to start getting to know the market and build the all-important relationships.

Only recently the Chinese authorities have allowed foreign companies to set up their own company without a Chinese partner. A wholly foreign owned enterprise (WFOE) gives you full control of your company in China but it can be complicated and costly process to set one up.

A joint venture with a reliable Chinese partner can be a very good way to enter the market, as it can give you the local knowledge that is so important. However, it is vital to thoroughly research any potential partners before entering into an agreement.

The final option is to set up a company in Hong Kong where the laws are much more straightforward. This can provide you a good launch pad into the Mainland.

As well as your choosing the company set-up that is more suitable to your business, it is vital to be aware of some of the cultural aspects of doing business in China.

Among those is the importance of building relationships with potential business partners. You cannot do business in China by remote control and must regularly visit the market to get to know your counterpart. In China, you become friends first before doing business.

Business cards are very important in China and you should always hand over your business card with two hands and print your details in Chinese on one side.

When doing business in China, it is important to be patient, as deals do not happen quickly and one should be aware that people do not like say no directly so if they are vague with an answer do not force them.

China is an exciting, dynamic market that offers wonderful opportunities for Maltese companies but it is also a market that presents some unique challenges and demands real commitment. Understanding the culture and being aware of the challenges are vital to being successful in the market.