China is a market where investment for building up a business would be low and the turn over in the business would be high. Lots of Americans usually do invest in China to start up businesses as they find the environment very friendly for business purposes. The turnover of the Chinese market can be viewed in reality by watching the skyscrapers in the country, which are the icons of a country making marvelous business transactions. Over the last 20 years China has experienced an outstanding 9.5 percent growth per year economically. In 2002 for the first time China has attracted much more foreign investments than the United States. Not only providing or manufacturing low cost goods on large scale, China is also rapidly acquiring knowledge in many technical aspects. Doing business in China is all about building trust and mutual understanding which benefits both the investor and the country of China. The main problem that may arise when setting up a business in China is that, the culture in China is way far different from the culture of the west. Therefore, it is better to understand Chinese culture before entering into the boundaries of the country. To start a business in China, there are three options – Chinese-Foreign cooperative enterprise, Sino-Foreign joint venture and wholly foreign owned venture. The wholly owned foreign venture is time taking because a lot of assessment needs to be done and approvals required from many top officials. The Chinese-Foreign cooperative enterprise is also time taking and require many government approvals. Only the Sino-Foreign joint venture seems to be the perfect way to enter into Chinese markets, where the procedures are less compared to the other two forms.