Procurement, sourcing and import from China

Purchasing products or services seems easy, but this is not always the case. How do you know that you have the best deal, especially if you haven’t done much business before in China?

It already helps if you have a structured approach for your procurement and to keep your options open. Working with a local consultant or agency may help to identify more potential suppliers and to get the products that you just bought accross the border to their destination.

Find the right suppliers in China

China, located in East Asia, is a global economic powerhouse known for its diverse exports that span manufacturing, technology, and agricultural products. The country is renowned for exporting electronics and electrical machinery, including smartphones, computers, and consumer electronics, which are pivotal to its massive manufacturing sector and global supply chains.

Wages in China vary across different regions and industries. Generally, wages are lower compared to many developed countries, which has driven the growth of industries like electronics assembly, textile manufacturing, and automotive production. On the other hand, average wages are higher than in Vietnam, Myanmar or Cambodia. The cost of living in major cities like Beijing, Shanghai, and Shenzhen can be on Western levels, impacting disposable income levels.

China is also a major exporter of textiles, apparel, and footwear, leveraging its large workforce and competitive production costs. The country has a significant agricultural sector, exporting products such as rice, vegetables, and fruits. Additionally, China is known for its heavy machinery and equipment exports, including construction machinery, steel products, and industrial goods.

In addition to its export prowess, China offers extensive outsourcing capabilities across various industries, including manufacturing, IT services, and business process outsourcing (BPO). The country’s skilled labor force, infrastructure development, and favorable business environment have made it a global hub for outsourcing and investment.

Shipping your products

If you purchase tangible products, you have to ship them out of the country. Depending on the country where you want these goods, this may have implications.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.

There may also be non-financial barriers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

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A structured sourcing approach in China

Step 1

Supplier search

Try to identify in total 6 to 10 possible suppliers and check their websites. Approach them with a general request to see whether they have the products or services you need.

Step 2

Supplier selection

Submit your requirements to a group of three to five selected suppliers and ensure you get the right comparable quotations to make a choice. Negotiate with one or two of them to get the best result.

Step 3

Supplier management

Now start collaborating, making sure you have an efficient ordering process and limited risks where it comes to quality control and shipping the products.