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

english speaking chinese lawyer

English Speaking Chinese Lawyer: Intellectual Property Q&A (Part 1)

February 22, 2021

  English Speaking Chinese Lawyers: Introduction to this series of blog posts Western lawyers aren’t allowed to practice in China. Chinese lawyers fluent in English are hard to find and expensive. AsiaBridge Law carefully screens, trains and coordinates a network of local lawyers across Asia. Lawyers are selected for the right mix of professionalism, honesty and affordability. AsiaBridge Law paralegals coordinate local lawyers on behalf of the AsiaBridge Law clients while providing account management in English, Spanish, Portuguese and other major…

potential customer in china image

Can my Chinese supplier deliver to my potential customer in China?

February 21, 2021

Let’s say you have developed a great supplier in China that ships affordable products, on time at the agreed quality level. You are aware that the Chinese domestic market is full of potential customers.   If you want to explore the opportunity to leverage your Chinese supply chain to capture China-based customers, then this article is for you!   Here is a typical email I received last week from somebody in that exact position: Hi Mike, We are considering a…

NNN agreement in china

Defining “competitor” when drafting an NNN agreement in China

February 19, 2021

  NDA = Non-Disclosure Agreement NNN= Non-disclosure, Non-compete, Non-circumvention How to define “competition” under the NNN agreement?   In a recent blog post we explained why the NDA does not offer enough protection when buying from China. A key element of a robust NNN is wording that prohibits the supplier from doing business with the buyer’s competitors. Sometimes the suppliers are hesitant to sign the non-competition clauses of the NNN if it is too open-ended, especially when there is a…

How to Source Safely from China

How to Source Safely from China: 4 Key Steps

February 19, 2021

For today’s blog post, let talk about the important topic of safe sourcing from China. By far, the single most frequently asked question I get in the mailbag is something along these lines: “Mike, I found what looks like a good Chinese supplier, but it is my first time buying direct from China. I have read the horror stories and want to source safe. What advise do you have?”   Here is my answer to the question about how to…

Older China Business Blog Posts

NDA-VS-NNN

NDA vs NNN

February 18, 2021

NDA vs NNN. What’s the difference? Which is better when buying from China? Short Answer: NNN stands for “Non-disclosure, Non-compete, Non-circumvention” and is a more robust version of the traditional NDA (Non-Disclosure Agreement)”.  Simply put, the NDA is a promise that “they won’t tell anybody outside their organization about the idea”.  The NNN adds more layers of protection because it makes them promise to not only keep it a secret but also…

Cooperation with China Supplier

Setting the Right Tone for Cooperation with China Suppliers

February 17, 2021

  Many foreign buyers have struggled with their cooperation with the China supplier. If you are among them, you’ve probably looking for a guide or tips to improve your cooperation with the China Supplier. For today’s blog post, I thought I would share four advanced, yet simple, tactics that I have used to ensure there is a greater likelihood that my Chinese supplier will actually meet my expectations: 4 Tactics…

Factory Audits & Product Inspections

Quality Control: Factory Audits & Product Inspections

February 15, 2021

  Audits and Inspections Overview In this post, you will find the standard factory audits and product inspections as an essential part of the quality control when sourcing products from China regardless of the order volume. Only a naïve, new-to-China buyers would ever make final payment without inspecting the order before it leaves China.  Some importers think they are being safe by withholding final payment until shipping documents have been…

A Simple Way to Negotiate Price

A Simple Way to Negotiate Price

February 12, 2021

If you are looking for advice or guide on negotiating price in China, in this blog post, I will share with you a simple way to negotiate price with the Chinese suppliers. Different industries have different margins, and even within the same industry, some suppliers quote high, some quote low. So, I am sorry to say there is no set formula for negotiation of the price in China.  It’s not…

China Project Management: A template for tracking who is doing what when & why

China Project Management Template: Who, What, When, & Why?

February 9, 2021

Even the most professional of project managers paired with intensive quality control will not be able to make a bad supplier great.  So, if you find the right supplier early on, you have put yourself on the right path and both project management and QC will be much easier. Related Content:  Supplier Selection & Verification Overview: Project Management in China In the US and most of the Western countries, when…

Supplier Selection and Verification

Supplier Selection & Verification

February 5, 2021

Thanks to online directories like Alibaba and Global Sources, it is pretty easy to come up with a long list of potential suppliers. But it is not so easy to take this long list and narrow it down to the best one single supplier in all of China for your particular needs. While the directories may use terms like “verified supplier” and “safe payment system”, if you look at the…

Realistic Clauses in the Bilingual Contract

Realistic clauses help you to get support from Chinese courts

January 28, 2021

Learn how realistic clauses helps you to get support from the Chinese court.  When your Chinese attorney drafts a bilingual contract for sourcing products in China, it is important to include how to address the imperative terms in the agreement when there’s a breach of contract happening. Here’s an example situation of how the clear contract will protect you. A lot of us are thinking we’ve got this great contract…

Retain a Chinese Law Firm

Why Should I Retain a Chinese Law Firm?

January 22, 2021

There are many benefits when you retain a Chinese law firm. Often times having boots on the ground is indispensable. Whether you are operating within Asia or abroad, it is always reassuring having someone on-site and ready to respond at first notice. Additionally, there are many procedures and functions that a foreign attorney, even with an international firm, simply cannot do. You need competence in the drafting of documents and…

Hallmarks to Secure a Good Bilingual Contract in China

Hallmarks to Secure a Good Bilingual Contract in China

January 15, 2021

There’s really no excuse for not having a bilingual contract in China and these are the hallmarks of a good contract. Preparing a quality bilingual contract is likely to increase confidence in the process as you are protecting your rights and needs. It is most certainly a way of ensuring both parties understand and agree to its content.  A short situation below is an example of what will happen when…

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Most Popular China Business Blog Posts

How do you know if your sourcing project is a good fit for China?

Would your sourcing project get past Mark Cuban’s feasibility audit?

How do you know if your sourcing project is a good fit for China? Last month, I posted an article “Starting a Business in China:…

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Middlemen Series -Bait and Switch Strategy

What is a bait and switch strategy in the China Sourcing context?

  The bait and switch strategy does happen, whether you’re dealing with the trading company or sometimes even with the manufacturer themselves.  You need to…

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Product Portfolio

Red Flag Alert: A Product Portfolio that makes Jeff Bezos jealous!

Look at the product portfolio on the supplier’s website landing page.  They’ve got a snowmobile, Segway, jet skis, bicycles, motorcycles, and even more variety when…

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Middlemen Series - Be explicit that there eventually may be a production location audit - Bait and Switch Strategy avoidance

Be explicit that there eventually may be a production location audit

When speaking about a production location audit, it is assumed that the building and facilities, management staff, factory workers, production, warehouse and storage, quality, and…

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Why do the scam artists target small scale foreign buyers?

Why do the scam artists target small scale foreign buyers?

Let’s talk about why the scam artists target the small scale foreign buyers.  It’s pretty simple. They’re easy to find. There’re so many buyers online:…

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Factory ownership papers reduce the middlemen risk and fear!

Factory ownership papers reduce the middlemen risk and fear!

Red Flag Assessment Don’t be afraid to ask for ownership papers for the factory.  If the factory has some excuse about why they can’t share…

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Starting a Business in China - Is your sourcing project a good fit in China

Starting a Business in China: How and Where to Start

Right now, small and medium sized entrepreneurs can work on starting a business in China (P.R.C.) with more confidence than ever. The Chinese government has…

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Truth about sourcing famous brands in China, not all Apples are equal

Truth about sourcing famous brands in China, not all Apples are equal

A Chinese supplier is offering famous brands at lower prices than your country, due diligence would be wise, it may be a scam. Even if…

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Straight to the Source! Are you talking with the factory owner? Avoid the Bait and Switch Strategy

Straight to the Source! Are you talking with the factory owner?

How can you tell if you are talking with the factory owner? You want to go straight to the source to find out about the…

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Small buyer, high risk & E-buyer beware! Don't fall into a scam trap!

Small buyer, high risk & E-buyer beware! Don’t fall into a scam trap!

  When is it likely that you will fall into a scam trap? You’re highly likely to fall into a scam trap if you meet…

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Focus on those factories that can clearly show production experience

Focus on those factories that can clearly show production experience

How do you know if a supplier has production experience? Focus on those factories that can clearly show production experience with your particular product or…

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What are the two types of Scams?

Be wary of these two types of scams when sourcing in China

I’d like to share the various types of scams that you might possibly encounter if you are not vigilant. Even in this pandemic, other people…

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China Sourcing: 10 Common Mistakes

 

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