China Business, Law & Sourcing Blog
The content found in this blog is intended to serve as general information about China law, business & sourcing; it is not legal advice nor intended as legal advice
Most Recent China Business Blog Posts
Supplier Payments: Dangers of sending money to a 3rd party or Hong Kong sister company.
I have seen situations where the buyer takes the seller to court because the product had bad quality or was delivered late, but the case was lost because (even though the buyer had clear signatures on the invoice, PO, and warranty terms) the mainland supplier claimed that the PO was never activated because no funds were received to their corporate account. They say “how can we be help liable for an order that was never paid for?”.
Supplier Payments and Bank Transfer Headaches: What is the zip code for Hong Kong?
Here is an edited discussion (to protect identity of parties) regarding a question from a US buyer regarding how to answer questions from his local bank when sending money for the first time to the Hong Kong Bank account of a Mainland China supplier What is the Hong Kong postal/zip code? “I’m getting ready to send a bank transfer (TT) from my Bank (HSBC) to the Hong Kong bank account (also a HSBC branch) provided by the Chinese supplier.…
Importing from China: Documents, Paperwork, Certificates & Compliance
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing LED light bulbs from China to India, but the answer is applicable to a wide range of products, so I decided to blog about the Q&A. Can I Import LED bulbs from China to India? What is the process? Can…
China Sourcing: Making Safe Payments and Expectations about Credit
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing motorcycle part from China, but the answer is applicable to a wide range of products, so I decided to blog about the Q&A. I need motorcycle spare parts on credit. Currently, I am selling oil for motorcycles and now my…
Older China Business Blog Posts
Payment Methods & Counterfeit Products from China
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing cognac from China, but the answer is applicable to a wide range of products, so I decided to blog about the Q&A. I am interested in ordering Hennessy cognac, for which…
Due Diligence and QC are important. Contracts are Essential.
Executive Summary: Initial productions runs in China are particularly challenging as there are so many unknowns. Distance and language complicate transparency. This is the story of a US buyer who did everything right in terms of due diligence and quality control. But for reasons beyond his control, the entire order was defective. They had the foresight to create a bilingual contract with the supplier. Without the contract, this would have…
Dispute Resolution in China: Negotiation, Mediation, Arbitration, Court Action
Here is an edited discussion (to protect identity of parties) regarding a question about dispute resolution in Guangdong Province involving electronics sourced by a US company, but the answer is applicable at a national level for a wide range of products, so I decided to blog about the Q&A. Thank you for your help preparing the demand letter. If that doesn’t resolve the situation, I understand we may need to…
What is a Demand Letter and how is it used in China to solve disputes?
Negotiations with your supplier going nowhere? Have you been wronged by a party in Asia? Need help getting your money back? Demand Letter Service Unfortunately, there is no Better Business Bureau in most parts of Asia where you can take your grievances. You will find very little support from government agencies and local police unless your loss is large or you have political connections. Unless you are sure you have…
Vietnam vs China: Sourcing 2021 and Beyond
“China + 1” is a sourcing strategy that became popular in the past decade in response to the increased costs of doing business in the PRC. International buyers of all sizes, employed this strategy in order to diversify risk by not having all their production “eggs” in one “China basket”. Vietnam was often touted as the ideal “+1” because: Global Sourcing: Is Vietnam the new China? it was less expensive…
China Shipping 2021 and Beyond: Delays, Dangers and Best Practices
Shipping rates continue to rise, experts expect the situation will remain problematic beyond Christmas and Chinese New Year. China Shipping 2021: Background and why we wrote this article There are plenty of articles out there explaining the factors that contributed to this mess (Covid, Price Gouging, Shifts in Supply/Demand…) and no shortage of pundits offering their forecasts about when a correction may take place, but there is not a lot…
What To Do When You Find Your IP being Knocked-off on Alibaba?
The lawyers in our network receive this kind of request on an almost daily basis: Pitfalls and Best Practices for getting copycats shut down on Alibaba in specific and in China in general In theory, you don’t have to be a lawyer to contact Alibaba and report the knockoff. If you show Alibaba, you are the legitimate owner of the IP, they may take action without the need to take…
Freight Costs From China Continue to Escalate
If higher prices, increased raw material costs and IC chip shortages weren’t enough to make you pull your hair out, if you’re doing business in China, you know freight costs have also been steadily going up. But recent quotes for clients to ship containers to the USA have reached stratospheric heights, sinking hopes for a return to favorable rates. A quote for a 20-foot container from Shenzhen in the…
Be An Exciting But Honest Potential Customer
I mentioned in my previous blog that it’s not a good practice just to say “What’s your lowest price?”. 4 tips on How to be an Exciting but Honest Potential Customer In this blog post, I will share with you some tips on how to be an exciting but honest potential customer: What I like to do when visiting the trade show, first I walk by, I pick up brochures,…
Most Popular China Business Blog Posts
Common Mistakes and Tips when Visiting Trade Shows and Factory
In this blog post, I’ll share with you the common mistakes that new buyers often make when visiting trade shows for the first few times.…
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What is the Biggest Red Flag When Looking for the Right Type of Supplier at a Trade Show?
Today’s blog post, I will expose how two very common scams can unfold when you are doing business in China. While both these scams have…
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Common Scams when doing business in China
Today’s blog post, I will expose how two very common scams can unfold when you are doing business in China. While both these scams have…
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Tips and Practices to Avoid Scams
In my previous blog, I was talking about The 3 Most Common Scams. So you might be thinking “Oh my God how do I protect…
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The 3 Most Common Scams You Should Know
Here are a few examples of the most common scams targeting foreign buyers. Scam #1: “The Classic” This is where the scam artist convinces the…
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Huge Red Flag that a Website is a Scam Artist
In this blog post, we will talk about some of the red flag that you should notice when visiting the website of a scam artist.…
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Dealing with Defective and Non-conforming Goods in China
In this blog post, let’s talk about where the quality and contracts meet. Based on my 20 years’ experience in China, I’ll share with you…
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How to Make the Contract Officially Binding in China?
In the previous post, I covered how to get the supplier to respect the contract and if penalty clauses in supplier contracts actually work. Now,…
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How to Get The Supplier to Respect The Contract?
Do you have the right terms in place in your China contracts? Perhaps you are wondering if the supplier will respect the contract? In this…
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The Bad, The Ugly, and The Good When It Comes to Agents and Middlemen
Today, I just want to be a little bit better-rounded and explain that sometimes the agents are very good but sometimes they’re the root cause…
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2 Main Problems When Buying at the Wholesale or Retail Level
Whether you’re buying at the wholesale or retail level, the main problem is two-fold: stability of the supplier & stability of the supplier’s supplier! What…
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Finding The Right Supplier in China
Today’s blog post is about finding the right supplier and finding the “right supplier” is a different process for different industries and order sizes. It…
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