China sourcing
Are different skill sets required for sourcing vs inspection?
Here is how we answered a question about what is the main difference in the skill sets required for sourcing and inspection? As the answer is applicable to a wide range of products, I decided to blog about the Q&A. Question about the main difference in the skill sets required for sourcing and inspection: Does…
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How to Source Safely from China: 4 Key Steps
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…
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Supplier Selection & Verification
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. Also, keep in…
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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: How and Where to Start” and in that article it gives information on how you familiarized the business law in China and the relevant operating requirements when starting a business…
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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 be explicit “We visit this factory; I want the production take place here at the location we visit.” When we post about contracts as a next blog series soon, I’ll…
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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 you look deeper. Come on! Not even Mitsubishi, Sony, General Electric, Philips, and Ericson combined have this type of product portfolio. So something is very fishy here. Most likely, it’s…
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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 product development are all covered on gathering good information. In China, factory audits are not a legal requirement but is required if you really want to manage the risks. Why…
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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: eBay power sellers, people that have a small eBay store, or some online store back home and they buy ten units of this, 20 units of that. There’re so many…
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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 with you who owns the factory or a business license, that’s a big red flag. They’re obviously trying to hide something. Example (ownership papers): It may be awkward to go…
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Truth about sourcing famous brands in China, not all Apples are equal
The truth about famous international brands. If it’s fashion or electronics, please realize two things. Various major brands including apple manufacture their goods in China as it is cheaper there. This may lead the buyer to think that one can get products at a cheaper rate from China but it is not true. China suppliers that…
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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 production of your products. You might ask him … “How many of your employees are from Hunan province? How many from Sichuan? How many from Guangdong?” The trading companies that…
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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 the criteria as a small buyer or an e-buyer. So if this describes you, be very careful. Two types of common buyers that fall into a scam trap: You’re a small…
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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 the production method. When you ask “Show me some samples”, and it takes that factory weeks or months to get you some samples, it probably means that they don’t…
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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 might take advantage of the situation. This new series of blog articles will help you be aware and how to avoid these types of scams in China. Actually, China offers…
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PPE Part 4: Can you import Chinese made PPE into your county?
PPE Part 4: Can you import Chinese made PPE into your country? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking to import Chinese made PPE as the world scrambles to source equipment during the Covid-19 pandemic. Can you import Chinese made PPE into your country.…
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PPE Part 1: The dangers of buying PPE from “your guy’s” “China guy”
Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Introduction to our series on buying PPE from China during the Covid-19 pandemic. A growing number of buyers are…
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VAT Leak in China Manufacturing: Planning for Value Added Tax Rebate
In an earlier post on the Chinese Value Added Tax (VAT) system we raised the subject of a “VAT Leak” and talked about the need to pay close attention to the VAT rebate, especially when consolidating freight from multiple suppliers in China. Here is an excerpt: Why is it important to understand the VAT…
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Coronavirus & VAT in 2020: “In times like these…” Mark Twain answers
“In times like these, it is important to remember there have always been times like these”. – Mark Twain China Sourcing, Coronavirus & Value Added Tax (VAT) in 2020 In this blog post, we will answer the following questions: Why is it important to understand the VAT system in China if you source made-in-China products?…
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China’s Value Added Tax System: How to navigate VAT and negotiate a price when sourcing
China’s Value Added Tax (VAT): How to navigate the system and negotiate with suppliers like a pro Buying in China? Complexities of the Value Added Tax System China’s Value Added Tax (VAT) and VAT Rebate system is complex and very confusing. But if you are buying from China, understanding the basics of how the system…
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5 Essential Questions on Trademarks Protecting your Intellectual Property IP
Concise answers to 5 strategic questions about Trademarks Protecting your Intellectual Property. Additional links provided with info on Trademarks in China.
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Copyrights in China: Protecting your Intellectual Property (IP)
Copyright Strategy: China IS different Lawyers and businesspeople lacking China experience will tell you that since copyright is automatically granted when you create something original you need not worry about it in China. Those with deep China business experience paint a very different picture.
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HK and PRC Business Formation: Holding Companies, WOFE’s, Offshoring and Other Key Issues
Common Question: I am setting up a HK LLC because I hear I can operate tax free, do I need to file my taxes each year in HK? I’m also thinking of setting up a company in China to help w sourcing. At what volume does it make sense to set up my own company…
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Do I Have Coverage in China if I Register My IP Via WIPO/ Madrid System?
Do I Have Coverage in China if I Register My IP Via WIPO/ Madrid System? Have you found yourself wondering if you have coverage in China if you register your IP via WIPO/ Madrid System? If so, read below what each is and how they work. Background on WIPO and Madrid System: (Coverage in China) The…
Read More Penalty Clauses: Do they work when sourcing from China?
Need more info on Penalty Clauses while sourcing from China? Click here to do your due diligence on using penalty clauses while sourcing from China. Need more info on Penalty Clauses while sourcing from China? Read more to do your due diligence on using penalty clauses while sourcing from China. In today’s blog: we’ll answer…
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Managing Quality When Sourcing From China: Tips & Best Practices
Are you looking at the best ways in managing quality when sourcing from China? Read some of our tips and best practices… Are you looking at the best ways in managing quality when sourcing from China? Read some of our tips and best practices… Can high-quality affordable goods be “Made in China”? We have all…
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