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Top Small Business and Investment Opportunities in China in 2020

China is an attractive market for some of the world’s largest conglomerates. In the last few years, China has established a niche for itself regarding national and economic issues, making many entrepreneurs and established companies racing to the country.

There are over one billion people in China. It has a fast-growing economy that is also rated as the second largest in the world. It is also the largest exporter and importer of goods in the world. Furthermore, the company offers affordable and reliable technology, as well as a highly productive workforce. All of these factors make China a powerful country to do business in. This is why most Fortune 500 companies have a presence in the country.

China has many thriving sectors, including agriculture, manufacturing, oil and gas, automobile, pharmaceutical and tourism. China is currently promoting certain small business opportunities.

If you are considering opening a business or expanding your business to China, these opportunities may help you generate impressive income while allowing you to enjoy a low profile. Here are some of the most promising business ideas and investment opportunities in China currently.

Best Small Business Ideas in China

Rounding out the list for the best small business ideas in China for 2019 are:

Automation Control Products

The number one small business in China is a technology company that sells industrial automation control products. Marketing similar products may yield the results that you want. Consider this option if you are looking for a new business opportunity.

Supplementary Education

The supplementary education market in China is huge. After-school private tutoring services is one viable option. Another is providing online classes to students and workers. These classes are important in China, which prides itself on having a strong educational system.

It is customary for many students to continue their studies after the end of the traditional school day to gain a competitive edge. Because online classes are convenient and accessible to more people, it is viable option for many and an in-demand opportunity for businesses. 

Imports and Exports

Small businesses that involve trading are often successful because they help create additional business opportunities across the globe. Because China is the largest exporter and importer of goods in the world, it is easier to create a profitable importing and exporting business in the country. If you have not yet launched a business and are looking for ideas, this is one to consider.


The pharmaceutical industry in China is massive and highly profitable. Furthermore, in China, businesses often have access to cheap labor and raw materials. However, selling pharmaceuticals in China requires businesses to acquire the proper license.

Forbes China has previously listed a pharmaceutical company in its list of top 10 small businesses in the country, so it might be an industry worth considering if you are willing to go through the regulatory red tape.

Health Products 

Environmental concerns, more access to health information and the presence of new diseases and illnesses has made current generations more concerned about their health than previous generations.

Health product businesses may include herbal goods, supplements and skin care products. In China, there are many small health products businesses. Some successful businesses focus on women and the beauty industry while others appeal to both genders. 

Ecological Environment Construction

The world has taken notice of more environmental concerns and China has followed suit. It is encouraging businesses that are taking an eco-friendly approach and constructing ecological environments, such as afforestation projects, seedling of plants and garden landscape engineering.

Companies that provide technological research on ecology are also in demand.  

Direct Marketing

Direct marketing is one of the best opportunities for small businesses because it is reliable. It requires that businesses be able to communicate well and develop key connections with customers to be successful. 

Internet Access

Not all consumers in China have or can afford to have internet access in their homes or businesses. However, many people still need this access. Operating a small-scale internet businesses is a simple way to merge into the Chinese country while not having to invest substantially into it.

Food Production

When deciding on which business initiative to pursue, it is important to consider needs so that you can opt for a safer option when available. Everyone needs food, but with a population exceeding 1.35 billion, China particularly needs this resource. 

Best Investment Opportunities in China

There are also certain sectors that are prime for investment in China including:

Manufacturing of Household Commodities

China is one of the largest producers of household commodities. They are often cheaper than the products produced in other countries, allowing them to be more competitive. Consider starting your own household commodities manufacturing company. 

Online Stores

China’s access to advanced technologies allows it to be a source of thriving online shops. There are several advantages to investing in this type of business in China, including that you do not have to keep all of the products that are listed on your shop in China.

You do not have to invest in inventory. Instead, you can make agreements with manufacturers in which you list their products on your shop and sell them to your customers for a markup. 

English-Language School

Since English is often the language spoken by business leaders around the world, many Chinese professionals are trying to increase their English-language skills. You can open a school that teaches professionals how to speak English, especially in business settings.

This type of business requires minimal capital investment and you may already have the skills necessary to run a successful business of this nature.

Haulage Business

Another investment opportunity is to launch a haulage business, which transports goods by road or rail. It includes transporting ore, coal and supplies. Since China is a country with some of the highest volume of goods, this is a sound investment. 

Mobile Phones and Accessories Business 

With its ready access to technology, a productive workforce and cheap raw materials, China has revolutionized the mobile phone industry. China offers cheaper mobile phone and accessory options in comparison to some of the overpriced goods of this nature elsewhere in the world.

Having this type of business can be a highly profitable business venture when done correctly. The key to success with this type of business is partnering up with businesses outside of China to whom you can supply mobile phones and accessories. Cheap accessories that you may be able to sell include batteries, chargers, battery banks, cases, memory cards and USB cords.

Electronics and Gadgets

China also produces other electronics and gadgets. Investing in a business of this nature can allow you to get the products cheaper from the manufacturer that you can then resell to other businesses. 


Gold and silver plated jewelry is popular in China and other parts of the world. Additionally, there are other types of jewelry that you can produce in China that can allow you to successfully launch your business in China. 


Bags and shoes are some of the most important accessories around the world and China can help you launch your products in developing countries and industrialized areas throughout the world. 


China has ample opportunities for small business and investment. Regardless of which option you choose, it is important that you launch your business in an efficient and compliant manner.

Horizons can advise you of the regulatory schemes in place and inform you of the guidelines you must meet, whether that means a minimum capital investment or a necessary license to conduct the type of business you are considering in China.

We can also get you a local workforce through our China Employer of Record services so that you can have people working on the ground as soon as you are ready to launch your business.

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