If you are an international company seeking to connect with Chinese clients and partners in service-based industries you may ask yourself how to get started – especially in the face of the newly ignited US-China trade war.
Well, you have come to the right place! Despite escalating tensions from the ongoing US-China trade, China remains a vital and attractive market for global businesses. With the world’s second-largest economy and a rapidly growing middle and upper class, China continues to offer substantial opportunities.
Here at China Gravy, we’ve been helping service-based industries build successful business partnerships in China for more than ten years. Trusted by clients in over 30 countries – especially in education, hospitality, real estate, IT, and consulting – we combine deep market knowledge with hands-on experience. We deliver tailored strategies, digital marketing execution, and partnership support to help global businesses thrive in China.
Table of Contents
- Current Affairs (Q2/2025)
- How to Build Strategic Partnerships in China
- Specific Tips for Service-Based Industries
- The Takeaway – Building Strategic Business Partnerships in China
Let’s dive right in.
Current Affairs (Q2/2025)
Up until 2018, trade relations between the United States and China were relatively stable, with tariff rates generally low. The U.S. average tariff on Chinese goods was around 3-4%.
A Trade War Escalates
However, during the first term of US President Donald Trump (2017-2021), US-China trade relations began to deteriorate, escalating into a trade war. Under the Biden administration (2021-2025), US-China trade evolved into a broader issue, marked by strategic rivalry on the global stage.
With the onset of Donald Trump’s second term (2025-2029), the trade war with China (and other nations) intensified. The United States significantly increased tariffs on imports from various countries, including China.
Since April 2025, the US has imposed an additional punitive tariff on imports from China, amounting to 145% on a large variety of product categories. In retaliation, China has imposed its own additional tariffs on U.S. imports, which now stand at 125% – also for all kinds of different products. Throughout this period, Xi Jinping has remained in power as President of the People’s Republic of China (since 2013).
It is crucial to understand that these tariffs primarily target physical goods. On the other hand, service-based industries, such as education, real estate, and hospitality, are not directly affected by these tariffs, regardless of whether they have a physical presence in China. However, these industries may experience indirect effects due to shifts in consumer behavior and changes in broader economic conditions.
What Does this Mean for You?
Given that international service-based industries often operate remotely or through local partnerships in China, now is the best time to focus on forming strategic business partnerships in China. This approach will help mitigate potential trade barriers that could emerge in the future, ensuring business continuity in a complex trade environment.
Follow our blog – we regularly publish current and relevant topics on China marketing for service-based industries and beyond. The next topic is already in the pipeline – a deep dive into how service-based businesses are affected by the US-China tariff war, and how they can put themselves in the best position for anything that lies ahead.
How to Build Strategic Partnerships in China
Building strong, strategic partnerships in China requires more than just a good product or service. It requires cultural sensitivity, long-term thinking, and active relationship-building across multiple channels.
We’ll look at the three main stages:
- Finding business partners
- Negotiating & Signing partnership agreement
- Partnership agreement signed. Now what?
Let’s take a closer look.
1. Finding Business Partners
Identifying and connecting with business partners in China is truly an art form. One, that we at China Gravy have mastered over the past decade. Learn from us and skip the pitfalls that we experienced!
Pay Attention to China’s Distinct Business Culture
When doing business in China, understanding the difference in communication styles is essential for building successful relationships.
Western Style: Direct and Efficient
In the West, business communication tends to be straightforward and efficiency-driven. Professionals commonly use email, phone calls, and digital tools like Salesforce to reach out to potential partners or clients. The goal is to get to the point quickly, make a clear proposal, and move fast through the sales funnel.
Chinese Style: Relationship-First and Trust-Based
In contrast, business in China is deeply relationship-driven. The concept of Guanxi – a network of trust and mutual obligations – plays a central role. Instead of email (which is rarely checked), everyone communicates via WeChat, the dominant platform for both personal and professional interactions. Building trust takes time, and long-term relationships often matter more than immediate results. A strong relationship is often the gateway to business opportunities.
Attend Chinese Business Expos & Networking Events
One of the most effective ways to connect with potential partners in China is by attending industry-specific expos and networking events. These gatherings provide invaluable facetime with key players – from suppliers to distributors and service providers. They serve as a strategic opportunity to build a contact or target organization list.
While immediate results may be rare, participating in these events signals your commitment to the Chinese market and helps open doors for future communication and business opportunities. They also offer a chance to understand market trends, gain local insights, and develop the personal relationships that are essential in Chinese business culture.
Leverage Local Chambers of Commerce & Associations
Tapping into local chambers of commerce and trade associations is another smart move for foreign businesses. These organizations act as bridges between international companies and Chinese enterprises, offering networking opportunities, business matchmaking services, and essential legal or regulatory updates.
Membership in these associations also boosts your credibility in the eyes of Chinese partners, showing you’re invested in playing by local rules and building meaningful connections.
Connect with Overseas Chinese Business Networks
Don’t overlook the power of overseas Chinese business communities. These networks often serve as an accessible gateway to the Chinese market, especially for first-time entrants.
Many members maintain close ties with mainland China and can provide warm introductions, insider perspectives, and even bilingual support. Partnering with them can be a softer landing into the complexities of Chinese business, while still building genuine and valuable relationships.
2. Negotiating and signing the partnership agreement
Now, it’s time to generate outcomes from these partnerships. Here’s what you can do – tried and tested with great success by us – time and again.
Meet Face-to-Face & Sign Contracts In-Person
In the West, contracts often finalize deals. Conversely, in China, a signed contract is just the beginning. Personal meetings are a crucial part of building trust and alignment (remember: Guanxi).
If you can at all, make the effort to visit in person – it’s viewed as a sign of respect and dedication. While formal contracts are still necessary, mutual understanding and trust will often dictate how agreements play out in the real world.
Understand Chinese Negotiation Tactics
Negotiations in China can be complex and indirect. Chinese counterparts may avoid saying “no” outright, and silence or vague responses can signal disagreement or hesitation.
Be prepared for prolonged discussions and plenty of back-and-forth. Patience, empathy, and flexibility are key. Always pay attention to what’s said between the lines and stay focused on building mutual benefit over time.
Long-Term Relationship Management
Successful partnerships in China are not “one and done”. They require continuous care and attention. Regular check-ins, thoughtful gestures during Chinese holidays, and consistent collaboration help nurture the relationship.
Think long-term and always be present, even when you’re not actively selling or closing a deal. In China, loyalty and reciprocity go hand-in-hand, and the businesses that prioritize relationship management tend to see the greatest success.
3. Agreement Signed. Now, How to Generate Sales?
Congratulations, you’ve now signed your partnership deal with a Chinese business provider. Now, the real work starts after the ink dries.
What’s the next step to get actual sales? This is how we do it and what’s worked like a charm for us for many years:
The most successful partnerships are built on consistent follow-up and proactive support. This means staying in close contact – not just through formal communication, but also informally, with casual chats about family, hobbies, or everyday life. That said, it’s important to strike the right balance and avoid overstepping; keep conversations friendly without getting too personal.
One effective way to build rapport is by engaging with your contacts through their personal stories and interests. Since most professionals in China use WeChat, where they often share both business updates and personal moments, interacting with their posts can be a natural way to find common ground and deepen your connection.
At China Gravy, we help our clients craft compelling co-branded campaigns, training sessions, and even tiered commission models that motivate partners to sell. Maintaining momentum through regular check-ins and shared marketing activities turns passive agreements into active revenue channels. In China, a good partnership is a living, evolving relationship. Treat it that way, and your sales will follow.
Specific Tips for Service-Based Industries
Now, let’s take a look at the specific requirements and success factors for those service-based industries, where we have the most experience with.
Education
For international schools, universities, and edtech providers, building strategic partnerships in China is essential to sustainably attract Chinese students and expand brand presence.
The most effective approach starts with collaborating with licensed education agents, who have direct access to student families and understand local preferences.
Equally valuable are partnerships with Chinese high schools, language centers, and international curriculum providers, which act as feeder institutions.
In addition, working with edtech platforms (like Gaokao* apps or virtual classroom tools) helps scale your reach while aligning with China’s digital learning ecosystem.
Visibility is key. That means investing in WeChat marketing, Baidu SEO, and local KOL (influencer) campaigns to build trust and reputation among Chinese students and their families (decision-makers).
Don’t underestimate the power of Chinese alumni networks and overseas Chinese communities, either. They can provide peer recommendations and warm introductions.
* National College Entrance Examination, Chinese equivalent of the SAT or A-levels.
Real Estate
For global real estate companies, developers, and property investment services, building strategic partnerships in China requires a dual approach:
- tapping into trusted local real estate networks
- activating overseas Chinese investor communities
We recommend starting by collaborating with licensed Chinese real estate agents and brokers, who are able to connect you with HNWI buyers and who can offer vital market intelligence.
For larger-scale projects, consider forming joint ventures with reputable Chinese developers or construction firms (focus Tier 1 and Tier 2 cities) to attract Chinese real estate buyers. These alliances not only provide credibility but also ease regulatory navigation.
To reach Chinese investors abroad for your real estate project, tailor your marketing campaigns with localized messaging, Mandarin-language materials, and platforms like WeChat, Xiaohongshu (Rednote) and Baidu. Position your offering around key buyer motivations such as overseas education, residency programs, and wealth diversification.
Overseas Chinese communities – especially in Canada, Australia, Singapore, and the UK – also act as soft-entry points, offering introductions to active investor circles.
Hospitality
For international hotels, resorts, and travel businesses aiming to capture the attention of Chinese travelers, strategic partnerships are key.
In our experience, a great starting point is collaborating with major Chinese travel platforms like Ctrip, Fliggy, and Qunar, which dominate online travel bookings in China. These platforms offer built-in marketing tools, access to massive user bases, and valuable consumer insights.
Equally important is adapting your services to meet Chinese guest expectations. This includes offering Mandarin-speaking staff, Chinese breakfast options, payment compatibility (WeChat Pay, AliPay), and providing local travel recommendations, for example, via WeChat Mini Programs.
To increase visibility and trust, leverage Chinese social media platforms such as Douyin, Xiaohongshu, and WeChat Channels for authentic storytelling, influencer collaborations, and short-form video content.
Additionally, overseas Chinese communities – particularly tour operators and cultural associations – can serve as powerful bridges to Chinese outbound tourists, especially in overseas markets with established Chinese communities.
IT
For worldwide IT, SaaS, and cloud service providers, strategic partnerships in China are a high-potential yet highly complex endeavor. Why? Because navigating China’s regulatory landscape, data sovereignty laws, and local market dynamics requires deep local expertise and trusted partnerships.
To gain Chinese customers – larger companies rather than individuals – we recommend
- partnering with local system integrator, software resellers, and managed service providers (MSPs)
- co-developing solutions with Chinese tech firms
Since China has unique compliance requirements (like internet censorship and ICP licenses), aligning with local legal experts and infrastructure providers (like Alibaba Cloud and Tencent Cloud) is critical.
For visibility, tap into Baidu SEO, Zhihu for technical thought leadership, and WeChat for lead nurturing and client support.
Meanwhile, engaging the overseas Chinese tech community, such as returnee engineers or China-based developer forums, can be a smart shortcut to trusted referrals and bilingual talent.
Consulting
For consulting firms around the globe – from management and strategy to legal, financial, and HR – building partnerships in China requires local trust and specialized positioning.
A proven approach, tested and implemented by us, is to collaborate with local boutique consultancies, law firms, or accounting practices that already have Guanxi and understand the regulatory nuances across provinces.
Co-hosting workshops, whitepapers, or executive training programs with Chinese think tanks or business schools can boost visibility and credibility. For soft entry, tap into overseas Chinese professionals with consulting backgrounds, who often maintain strong ties back home and can act as cultural and linguistic bridges.
Digital visibility is also essential: think WeChat thought leadership content, Douyin case study snippets, and Baidu PPC for lead generation.
In a market that values face-to-face trust and proven success, referrals, testimonials, and local case studies often speak louder than polished pitch decks.
Let’s look at everything we’ve established so far in practice with a real-life example.
The Takeaway – Building Strategic Business Partnerships in China
Despite rising geopolitical tensions and steep tariffs affecting physical goods, China remains a strategic goldmine for service-based industries like education, real estate, hospitality, IT, and consulting.
Success depends not on products, but on relationships – built through trust, cultural fluency, and long-term engagement. Strategic partnerships rooted in local networks, Chinese digital ecosystems, and overseas Chinese communities offer a sustainable path forward.
For international companies, now is the time to act: building these partnerships not only ensures access to one of the world’s most lucrative markets but also acts as a hedge against regulatory and economic volatility in a rapidly shifting global landscape.
At China Gravy, we guide our clients in global service-based industries to win Chinese clients, expand their brand, and drive sales through:
- partner selection
- cross-border structuring
- lead generation campaigns
Contact us today to redeem your FREE consultation. Message us to secure your FREE China Strategizer – it will guide you through the first steps to enter the unique Chinese market.