How to Deal With Chinese Suppliers and Manufacturers

How to Deal With Chinese Suppliers and Manufacturers

Trade is one of the essentials of the world economy. If you are an importer doing business with Chinese suppliers and manufacturers, you probably realize that trade is not often a straightforward process. It is saddled with many rules and regulations, interacting with a different culture and foreign ways of carrying out business. Educate yourself on the way each country works to make successful deals.

Types Of Chinese Suppliers And Manufacturers

The products manufactured in China are usually cheap, which means you get to enjoy a higher profit margin. This makes China a popular destination from which to import goods. But the key to a lucrative business is finding the right suppliers and manufacturers while side-stepping the swindlers out there.

Three groups you will encounter are manufacturers, third-party import suppliers and trade agents. Manufacturers are quick to respond to your orders. Third-party import suppliers and exporters can assist you if you are looking for a broad range of products. They are also familiar with import-related issues. Export agents usually take care of the documentation for manufacturers.

Make it a point to build relationships with the suppliers and manufacturers you work with.

A Note On Imports

Understand how costs are calculated. The landing costs include FOB, freight charges, warehouse fees, import duty and other expenses concerning logistics. You will be able to get a clear picture of the cost process and to deal with hidden costs by initially placing small orders.

Concerning Customs

Pay special attention to your documentation and ensure that customs compliance is met regarding packaging. If it fails customs clearance, you may have to pay a higher import duty, resulting in a delay in the clearance of your goods. You will have to pay extra for the storage as well.

The Right Way To Pay

Most Chinese suppliers and manufacturers use wire transfer, payments. Letter of credit is one of the safest options, since they don’t find payment options like feasible.

The Language Barrier

You might find that communication is tricky, especially when you are dealing with smaller manufacturers. The employees are not fluent in English. It will be easier to communicate with suppliers and manufacturers in cities. Due to their discomfort with speaking English, the staff may prefer to communicate with you through emails instead of via telephone.

Work Culture

Many Chinese manufacturers tend to overlook any issues in the produced goods and probably won’t address it unless you insist on it. Another issue is that they prefer to seal the deal quickly instead of gradually building a business relationship with you. They tend to not look into the future, but only at the sale at hand.

Yet, by taking these issues into consideration and anticipating potential hiccups and headaches, you can plan the best way to engage in an export-import relationship with Chinese suppliers and manufacturers.

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