China Business

Business Information from across China
Helping your Business with China

China Business » Business Tips » How to Avoid Problems When Buying from China

How to Avoid Problems When Buying from China

It seems that the world focuses on problems that people have when they buy from China. There are ways to help prevent problems. Being prepared before going into a business relationship with a Chinese company is obviously the best way to prevent problems. Some steps toward being prepared to do business with Chinese businessmen are listed here.

One major problem-preventing tool is to know your own needs in a business relationship. The product you want to have manufactured in China should be something about which you are familiar. You should understand the product before trying to help a Chinese factory owner to understand it. Be ready to express the raw materials that will be needed, the parts of the product and how they work, how the product should be assembled and then packed for shipment. You should have an understanding of the costs of shipping and customs you must pay when the products arrive.

You should have a plan for the production of the product. How many initial items would you need to order and how frequently you would re-order are important before discussing a contract with a manufacturer. Your own financial outlook is a part of this picture. You must be able to pay for the products when they are received at your port of entry.

You need to research possible suppliers of the product you want. Get to know their history and any problems they have had in the past. A trading agent can supply you with a list of firms in China to investigate before signing a contract. If you are planning to visit China before placing the order, arrange for this trip.

Will you want to use a trading agent as a go-between? If so, be prepared to pay his price as well as the cost of the products. If using an agent, will he be expected to do the inspections before your products are shipped from China? He will charge for that service.

For sure, you want to be sure that all the contracts in China are legal and binding. Buying agents or trading companies can assure you of such contingencies.

It seems wise to have a trial or sample product made up so you can test it for your purposes. Quality control tests can help to create confidence in the product's usability for your company.

Business Tips