In order to exit Print Version to Website Graphic Interface, please click HERE
Default colour schemeChange colours for higher contrastChange colours for High contrast
Gigabiz One Stop service

Tips on doing business in China and China sourcing

Home - Tips on doing businessin China and China sourcing

Tips on China sourcing and doing business in China

How to do business in China? You may hear some stories of the miserable experience in doing business in China and China sourcing projects from your business partner, friends or publications. Entering any new market has its risks, so does China. China is the place which has its own completely different business background and culture to western business. Here are some key tips of "do's and don'ts" of doing business in China draws from the experience of Gigabiz China sourcing consultants.

  • Distance

The distance we are talking about between you and your suppliers in China is not only “physical”, but also “cultural”. China has its very unique business culture. The thing it matters here probably is not even taken into consideration at all in China. The thing you never care about here probably is the key QC procedure for Chinese manufacturer. Therefore, DO NOT presume they should have known all these and it should have been done, DO go through everything and double check with your supplier.
In addition, even if most Chinese suppliers employ at least one proficient English speaker or interpreter, their mother tongue remains Mandarin (and often a second Chinese dialect). There are significant culture-based differences in communications styles around the world. In China, if you are not speaking Chinese, DO speak English slowly, avoid slang, jargon and contractions, and pause often to review key points. Seeking consulting services from a Chinese native, a native language speaker or experienced China trading agents will be helpful.

  • Products picking up from Chinese manufacturer

Everyone is moving to China, is this right for me? While almost any class of product can be sourced and purchased in China, not all make economic or strategic sense. Picking up your products very carefully especially for low quantity purchasing requirement. Production outsourcing in China and manufacturing customised products is NOT shopping on high street. Therefore, DO make sure product and its quantity are suitable for manufacturing, DO NOT “shop” in the manufacturers of the other side of the world.

  • Chinese Suppliers and Chinese manufacturers

There are NO methods to check the reputation, credibility and financial status of Chinese manufacturers. That's why it is so important to choose a manufacturing partner in China with rich experience and have a good track record. As a general rule, engaging with a new supplier through their agents and representatives is only a start. The corporate structure and ownership of companies in China can often be murky and at times beyond comprehension. To minimize the gulf and establish a productive relationship, you need to hold face-to-face meetings with members of the prospective suppliers' management teams. It is essential to interview key executives, tour their facilities, ask for and check references.

  • Business Partner and “Guanxi”

Most of the guides on doing business in China emphasize the importance of personal connections, or guanxi (relationship, networking). Networking is an aspect of doing business around the world, but it takes on added importance in a society with a complex bureaucracy and a weak legal system. A web of guanxi helps firms navigate China's bureaucractic and distribution challenges. Find your own business partner who has rich "Guanxi" is very important. The right business partner in China or its representatives in UK is critical to your success in any sourcing projects. If you put in the time and build a relationship, or "guanxi", you will have a dedicated and loyal partner that will move mountains for you when you're in a jam.

China is the place with opportunities and challenges, if you are willing to learn about local business culture, and understand the way to do business in China, with proper preparation, your company can position itself to profit from China's growth in the years to come.

Gigabiz - China sourcing and trading specialist

Visit our information centre to find out latest training session Gigaibz provided for local SMEs on doing business in China.

Following links include Gigabiz online resources of the things you should know on sourcing product in China, production outsourcing and tips on doing business in China, feel free to get in touch for your China sourcing requirement. (Gigabiz China sourcing specialists: Ask Gigabiz™ )

  1. UK and EU custom duty information;
  2. HM Revenue & Customs;
  3. Shipping cost from China to UK;
  4. Exchange rate and currency convert tool;
  5. China Customs;
  6. Ministry of Commerce of the People’s Republic of China
  7. International trading terms (FOB, CIF, Bill of lading, EXW etc)

For further information on how Gigabiz can help your business, or general queries please use any of the methods below, or use the form located in Ask Gigabiz™ section. We look forward to hearing from you.

Gigabiz United Kingdom Headoffice

Gigabiz Shanghai Branch

  • Email:infocn@gigabiz.co.uk
  • Web: http://www.gigabiz.cn
  • Tel: +86 (0)21 63610090
  • Fax: +86 (0)21 63610220
  • Gigabiz Ltd,
    1403, Hui Jin Mansion, No 515 Hankou Road,
    Huangpu District, Shanghai,
    P.R. China
    Postcode: 200001
w3c aaThis site uses valid CSS - Opens in a new windowValid XHTML 1.0 Transitional