China and Colombia are two different countries with different culture, language and traditions. China has been the fastest growing economy for 20 years and worldwide companies have been highly attracted to that huge market for its revenue potential. On the other hand, Colombia represents a stable economy which is growing at a good pace attracting investors from around the world.
To start doing business in any of the two countries, investors should follow up to 14 procedures and until 40 days to enter to that country, very different to the average period that takes in developed countries. According to the World Bank, Colombia ranks 53 and China 83 out of 181 on their ease of doing; very high compared to the US which ranks 3rd. For that reason investors should be aware of all the type of costs not only tariffs, duties and fees but also non-tariff barriers that can affect the way of doing business.
If a Chinese company decides to export to Colombia, it will have an advantage since China ranks as the second country from which Colombia imports. Potential industries are consumable goods, food industry and apparel. Conversely, if a Colombian company decides to export to China, this company has to estimate if it is feasible to supply the demand on time and if the products are sufficiently adapted to that market.
In addition, it is important to emphasize that Colombia has attractive trade agreements and tariff preferences with other countries and also, strong ties with the US economy. On the other hand, China has recently joined the WTO and now it has access to preferential tariffs around the world.
The language and cultural differences are important factors that do not have to be overlooked. For example, in China, establish good relationships or "Guanxi" is...