If, after the market survey, you decide to expand your business into China, you need to consider the type of business you should seek in China: a Representative Office, Joint venture or wholly foreign-owned enterprise etc. 
Following are the brief introduction for types of business.
  1. Registration of Representative Office (Rep. Office)
  2. Wholly Foreign Owned Enterprise ("WFOE") Registration
  3. Joint Venture
  4. Investment by M&A in China

1. Representative Office
If, having decided, you do need to have a permanent presence, one option is to set up a representative office. Representative Offices are established by foreign companies to engage in business liaison, product promotion, market research, exchange of technology and other permitted activities in China.
Representative Offices could not engage in direct operational activities. It's prohibited for Rep. Office exporting goods to overseas alone, pay suppliers through Rep. Office's bank account etc.
If you are thinking about manufacturing or trading in China through a legal entity, the choice is generally between setting up your own wholly owned enterprise or setting up a joint venture or even do Mergers and Acquisition in China.

2. Wholly Foreign Owned Enterprise:
If you want your office in China to do business under its own name with the direction from its parent company, opening up a wholly foreign owned company is a solution.

3.  JOINT VENTUER
If you have a good partner in China, and want to set up a business with the partner, set up a JV is a solution.

4. Set up agency relationship with the Chinese partner
You may enter into a Contract with the Chinese partner and establish agency relationship with the Chinese partner. In the contract, you provide the details of the each party’s rights and obligations.
 

You may contact David Gao, attorney at law for further information.