I would say:
Set up a chinese kit car manufacturing business for export:
based on building/ having made by subcon the chassis, body parts, trim etc. Design it along the lines of Sylva, Locost, Seven or whatever, but adapted to use components from mainstream chinese vehicles e.g. VW/ MG engine, transmission and some running gear from a rwd pickup made in china etc. In this way you can offer people a comprehensive kit with new parts for the same it would cost them to do it using secondhand running gear from a donor. I think this is a really good idea. I would also not overlook the possibility of a low cost lightweight car using the running gear from those little minibuses like wuling etc, only 1400 cc but it would go quite well if it was light enough.
You might also find some market for trackday/ race series within china. If you can track down a guy called michael kwan, a chinese american who tried to get something called formula china 2000 going (this was back in 2006) he might give you some indicators of how easy it would be - he wanted to build a race series for his chinese built but US designed 2000cc single seaters.
Regarding road car market for china, I would say it is almost impossible that you will get to a situation where any kind of kit car can be registered. I think you may have a business possibilty building concept car vehicles for Chinese OEM's to put on car shows, in the West most of those concept cars and show cars are not made in house by the OEM, and I don't know whether in China there are people building those, or whether they are made overseas.
Keep working on it though, its got potential, but I think for export rather than domestic consumption mainly.
Cheers,
FT