||China is currently the second biggest economy in the world and is Australia\\\'s most important trading partner. Australian businesses are increasingly engaging with China. This Unit of Study addresses the frequently asked questions of what underpins commercial practice in China and how to do business with China. It explores China\\\'s unique business environment, which has resulted from its culture, history and demography, and examines the business regulations, tax system, and the administrative and compliance issues businesses will face when carrying on business with China. The Unit first outlines the Chinese business environment in terms of culture, history, economics, demography, and government administration. It then provides students with an understanding of the legal environment that businesses will face in China. Through a hypothetical case study, different aspects of commercial practice in China such as contract, entity structure, mergers and acquisition, property and intellectual property rights, the tax system, different tax types and associated international issues, and social insurance are analysed.