China and Germany Projected to Build a Better Trading Partnership in 2020

Posted by Ivy on December 27th, 2019

Germany is Europe’s second biggest E-Commerce market. Just like the UK and other parts of Europe, Amazon and eBay are two of the most preferred E-Commerce platforms that German shoppers like to purchase their products from. China-manufactured products are constantly ordered by customers in Germany due to its affordability. Chinese business-owners, on the other hand, also aim to build a strong network in Germany because of the massive online market there. However, the lack of warehouses that China-based businesses can store their products in makes it more difficult for them to penetrate their target market.

Sterlinx, a UK-based company, is taking over the Chinese B2B market by storm. With a wide-array of services that they offer, more and more E-Commerce businesses in China now have access to the online market in Germany and the rest of Europe. Company formation in the UK, for instance, can be provided to China-based businesses where Sterlinx will provide them a British business address to aid in their European business expansion.

According to Ariful Islam, Co-Founder and CEO of Sterlinx, “No matter what you sell, there’s always a market for it in Europe. And the most strategic way of penetrating that market is to have a business based in Europe.” Islam aims to aid China in building a better relationship with the European consumers – and he believes that registering China-based businesses in the UK is the key to a successful business expansion.

Islam and the rest of Sterlinx’s executives chose to provide a business address in the UK because aside from giving Chinese business-owners the opportunity to sell in the United Kingdom -- the largest E-Commerce market in Europe -- it also paves the way for them to access the rest of Europe. By having a business based in the UK, selling in Germany can be done with ease.

Germany enforces strict rules and regulations when products are imported to their country. Tax authorities in Germany require business-owners to provide all the necessary information as proof that their company is legitimate and that their services aren’t fraudulent – this is a hindrance that discourages Chinese manufacturers from selling in Germany and parts of Europe; external help is sought by others as the documents that need to be submitted are written in German language – and the legal consequences they may face also subjects their business to detrimental mishaps.

Depending on the type and value of the item, VAT fees may vary; an accurate product description must be provided to the German tax authorities to determine the VAT charges. Otherwise, the business-owner may face legal consequences for providing the wrong information. Moreover, Sterlinx provides assistance to Chinese entrepreneurs when it comes to the VAT laws in Germany. Once the business is registered in the UK, merchants can freely sell their products in Germany as long as they pay the tax imposed on them. Sterlinx’s in-house legal experts assists entrepreneurs by guiding them and their business, as well as helping them provide the correct information to the German government.

Sterlinx guarantees transparency to protect their clients’ enterprise – a smooth-sailing business expansion is what they aim for. Any issue that Chinese merchants may face is carefully addressed and resolved by Sterlinx’s lawyers to ensure that their business is not at risk.

Convenience is also achieved once a business is registered in the UK. Sterlinx offers a fulfilment service to help China-based businesses with their product storage, shipping, and delivery. Items are guaranteed to arrive faster as their products are shipped from the UK instead of all the way from China – this helps both the German customers and Chinese manufacturers as customer service is improved when the products are delivered to the consumers on time – and the proximity of Germany and the UK is comparably closer than Germany and China.

Ariful Islam is optimistic about their clients’ growth and success for the year 2020. “Europe deserves to have access to the best products in the world, and China-made products need to be recognised more. There’s no better way of doing that unless we make it easier for both parties to trade with each other – and that’s our goal for this coming year.” said Islam. Sterlinx is expected to acquire hundreds of clients this coming year alone. They’re also offering a free UK business registration until the 31st of March 2020.