Over the last two decades, China has become increasingly important both as a manufacturing site and a competitive sourcing location for a range of products and services. Many organisations started working with China primarily because of their need to manage or reduce costs and remain globally competitive. China has seen dramatic changes, such as the economic structure, tax and other government policies, as well as the livelihood of the Chinese people. Although increased labour and land costs and changes in China's tax policies have placed a greater burden on many organisations establishing manufacturing plants in China, there are still many opportunities for foreign companies to sell their products in China. The opportunities in China have led foreign companies to reassess their mode of operations and supply chain models in China. Understanding and adapting to these changes will help foreign companies maximise their opportunities in the expanding domestic market, as well as learn to manage the risks. This article examines the challenges and opportunities for domestic sales in China.