China's retail market has great development potential. Over the past 15 years, retail sales almost doubled every four years to reach Rmb 5,395 billion in 2004. The Chinese government has removed all entry barriers for foreign participation in foreign trade, wholesale and retail businesses. However, Hong Kong companies that plan to break into the mainland's retail market still have to observe the prevailing rules and regulations applicable to product distribution. This Practical Guide gives a comprehensive account of the regulatory policies in retail, wholesale and foreign trade in China; explains the procedure of setting up a distribution company; lists all mandatory requirements in product quality, packaging and labeling etc. This Guide also introduces the different types of tax in relation to product distribution in China.