doing business in China
Can my Chinese supplier deliver to my potential customer in China?
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…
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NDA vs NNN
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…
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Setting the Right Tone for Cooperation with China Suppliers
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…
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Quality Control: Factory Audits & Product Inspections
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…
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A Simple Way to Negotiate Price
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…
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China Project Management Template: Who, What, When, & Why?
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 &…
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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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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 committed itself to the protection of foreign partners’ investments, profits and legal rights. These guarantees protect against nationalization and uncompensated takings. Whether you want to start an import-export store, boutique…
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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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Coronavirus: Alarms & Opportunity for China Sourcing; Wuhan aftermath!
The Coronavirus appears to have slowed down significantly with factories and the manufacturing infrastructure coming back online. Cautious optimism post Coronavirus. In today’s blog post, I’d like to look at the Coronavirus in terms of its impact specifically on the China sourcing industry. For example, if you are importing products that are made in…
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How a Business Advisor can complement Legal Counsel
Having both a local Chinese Lawyer and an International Business Advisor can complement your Legal team to not only save you money, but also offer deeper insight than hiring just one or the other. Force Majeure – a clause found in a contract to remove liability for natural and unavoidable catastrophes. Having both a local…
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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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Foreigner Registering Intellectual Property in China (IP)?
Here is a short Q&A for a very common question about foreigners registering Intellectual Property (IP) in China With regards to the certificate of incorporation, can the company holding the IP rights in question be registered in the UK? Otherwise, what options do we have? The applicant for the IP in China could be…
Read More 4 Simple Ways to Protect yourself in the New Year
It’s a new year and new scams are on the rise. Make sure you’re prepared. An English speaking Chinese lawyer explains the best ways protect yourself in China Be sure to register your IP. China recognizes IP if it’s registered in China and not if it’s on the market or already registered in your home…
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3 Protections Registering Your Trademark in China Will Grant You.
If you are reading this blog, then you know by now that you must register your trademark in China to get any real legal protection in China. But you my be asking what specific protection can be expected? According to the revised Trademark Law, implemented in 2013: An English Speaking Chinese lawyer gives 3 tips…
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How Much Tax Do You Have to Pay?
After a long long discussion, Law of the PRC on Individual Income Tax (“IIT Law”) has finally been promulgated at June 30, 2011 and here is an answer to your question of “How Much Tax Do You Have to Pay?”. According to Chinese law, two types of expats should pay Individual Income Tax (IIT) For…
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