As it takes time for China to adjust its industrial structure, it will only be opening its service sectors gradually and conditionally. Foreign firms seeking market access into China's service sectors must therefore have a good grasp of its tempo and timetable for opening up, and prepare themselves before it is their time to move in. After China becomes a member of the WTO, FIEs will have a freer hand in opening up its domestic market. They may combine foreign sales with domestic sales to minimise investment risks, using export sales to support their expansion of the domestic market. Apart from distribution channels and the building of brand image, the biggest headache of manufacturers in their quest to open up China's domestic market is how to deliver their goods to the sales outlets.
China is a vast country, which means transportation is a big problem whether by train or by truck.
An important strategy for FIEs seeking a share of China's domestic market is to establish national logistics centres in major cities. Most Chinese entrepreneurs want to build up their own business. FIEs may extend their successful chain-operated business to the Chinese mainland and charge royalties for the use of the brand or company name and the provision of equipment, materials, interior decoration, technical support, training and so on. In this way, they will not only be able to bypass the legal problems of establishing domestic trading companies, but will be able to quickly gain market access. This is a win-win approach that can minimise the investment risks of foreign firms while satisfying the urge of mainlanders to set up their own business.