Is China a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

China has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what China gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in China

Funding is one of the most critical ingredients in building a successful startup – and China offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

China's early-stage funding landscape is dynamic, supported by both prominent VC firms and government initiatives, though it faces notable challenges. Key investors include firms like HongShan (formerly Sequoia Capital China), Qiming Venture Partners, and Matrix Partners China, actively backing technology startups. The government plays a significant role through various incentives, subsidies, and the establishment of Government Guidance Funds (GGFs) aimed at directing capital into strategic industries like AI and semiconductors. Angel networks are also present, with entities like Angel Investment Network having a presence. However, the environment has seen a significant cooling recently. Venture funding in China hit its lowest point in a decade in 2024, with early-stage funding experiencing a substantial decline. This pullback is attributed to factors including global economic uncertainty, slower domestic growth, rising capital costs, and geopolitical tensions. Some reports also indicate a potential funding gap specifically at the seed stage, with fewer experienced angel investors compared to markets like the US. Despite a recent uptick in corporate-backed funding rounds in specific sectors like AI and semiconductors in early 2025, the overall trend has been one of decreased investment volume and deal count compared to previous years.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

China has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

China has a dynamic and rapidly expanding startup and innovation ecosystem, ranking highly globally. Major cities like Beijing, Shanghai, and Shenzhen are key hubs. Coworking spaces are prevalent and growing, catering to startups and increasingly larger companies. There is significant entrepreneurial activity, fueled by a large market, government support, and a highly educated talent pool. Numerous tech events and conferences occur regularly. While government policies encourage entrepreneurship and innovation with incentives like tax reductions and subsidies, the ecosystem is also characterized by intense competition and a fast pace. Support for early-stage founders exists through incubators, accelerators like Chinaccelerator and HAX, and early-stage investors, but the environment can favor startups that can scale quickly or align with strategic industries. Personalized support is available through various programs and networks, though the competitive "wolf culture" emphasizes rapid growth and performance.

For many entrepreneurs, the energy and resources available in China can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like China, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in China is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

China possesses a large and increasingly skilled talent pool for startups, significantly supported by its extensive higher education system. Top universities are expanding enrollment in critical fields like AI, integrated circuits, biomedicine, and new energy to meet national strategic needs and industry demand. This focus cultivates strong industry-specific skills, particularly in technology, advanced manufacturing, AI/ML, and biotech, crucial for innovation-driven startups. While a large workforce is available, attracting highly skilled talent to certain startup sectors can be challenging. Nevertheless, this local talent pool provides a vital foundation for entrepreneurial growth, offering expertise in key technologies and a deep understanding of the local market.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in China can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

China boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

China offers extensive infrastructure and support for startups, including incubators, accelerators, and a strong venture capital presence. Cities like Beijing, Shanghai, and Shenzhen are major tech hubs. This ecosystem provides access to funding, mentorship, and a large domestic market. Government initiatives play a crucial role, aiming to foster innovation and economic development. These include preferential tax policies, subsidies, and government-led investment funds, particularly for high-tech and strategic industries like AI and biotechnology. Programs like "Demonstration Bases for Mass Entrepreneurship and Innovation" and targeted city-level funding schemes also provide resources and support to help startups grow.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in China. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can China Be Considered the Best Place to Launch a Startup?

There’s no doubt that China provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in China face significant challenges. Competition is fierce, with both established domestic giants and numerous new entrants vying for market share. Regulatory hurdles are complex and can be unpredictable, requiring careful navigation of laws regarding business registration, licensing, and compliance, which can change frequently. While some older reports mentioned affordable cost of living in certain cities, recent information indicates rising living expenses in major hubs like Beijing and Shanghai, impacting talent attraction and retention costs. Additionally, foreign exchange controls and intellectual property protection remain concerns.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in China or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while China offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash