http://www.chinawhy.net/blog/index.asp chinawhy.net's blog English images/logo.jpg http://www.chinawhy.net/blog/Article.asp?id=71 ChinaWhy.Net 2010-3-8 I guess you would agree with me that it is important to learn some basic laws and regulations in China if you are trading with Chinese companies. Every business behavior is governed by relevant laws, in this article, we will try to compile a complete list of laws and regulations that are related with your sourcing business. Contract law http://www.fdi.gov.cn/pub/FDI_EN/Laws/law_en_info.jsp?docid=82499Especially pay attention to the chapter of validity of contract, liability for breach of contracts, and dispute settlement Foreign Exchange Control Regulations http://www.fdi.gov.cn/pub/FDI_EN/Laws/law_en_info.jsp?docid=95726Important to figure out how to withdraw money from China and how to send payment to China Regulations on Import and Export Dutieshttp://www.fdi.gov.cn/pub/FDI_EN/Laws/l http://www.chinawhy.net/blog/Article.asp?id=70 ChinaWhy.Net 2010-3-2 2010 Spring Canton Fair Guide: sections, date, phases, exhibitors The 2010 canton fair will be open soon in April, as usual, the 107th China import and export fair will be held in 3 phases. Overseas buyers or exhibitors might be puzzled of which phase to go. We will list all sections in 3 phases in this article so buyers and exhibitors can use to decide which phase to attend. Phase 1: April 15-19, 2010 Sections of Phase 1 Large Machinery and Equipment Large Machinery: Metal Cutting Machine Tools, Large Woodworking Machinery, Textile Machinery, Pharmaceutical Machines, Plastics Machinery, Packaging Machinery, Tobacco Machinery, Printing Machinery, Food Processing Machinery, Rubber Processing Machinery, Chemical Machinery, Forging Machinery, Foundry Machinery. Complete Sets of Equi http://www.chinawhy.net/blog/Article.asp?id=69 ChinaWhy.Net 2010-1-27 In the practice of international trade, it is very common that the buyer will prefer to choosing suppliers that have passed certain certification, such as UL, CE, ETL, GS. It is safe to say that the quality of certified products are somewhat better than those that have been tested yet. Some of the certification like CE is mandatory, some aren¡¯t. So how do we use certification resource like UL to source high quality and high end suppliers in China(Well, not necessarily in China)? For example, a US client approached me to source UL certified high quality decorative lighting suppliers in China, or they just asked us to source for high quality decorative lighting suppliers in China(we assume those suppliers that with UL approval are generally better than others). Here is how we can use UL o http://www.chinawhy.net/blog/Article.asp?id=68 ChinaWhy.Net 2009-12-22 Many buyers(even senior buyers) have the same puzzle:"I have visited Canton fair, talked with 100+ suppliers there, every suppliers claim they are more experienced, successful and reliable than others, I can't visit their factory address one by one, how can I tell who is better? " "I need to find quality skateboard suppliers that have experience exporting to EU market, also they need to have CE certificate. I have contacted tens of suppliers on Alibaba.com, most of them don't haveCE certificates. How can I find reliable Christmas light suppliers that are eligible to export to EU market? " To sum up, how and where to find most reliable, experienced and successful suppliers for large quantity purchasing? We have introduced on how to use data service of China Customs to find buyers in Chi http://www.chinawhy.net/blog/Article.asp?id=67 ChinaWhy.Net 2009-11-13 Due to the language barrier, cultural different, time zone difference, unfamiliarity with Chinese business manner, many buyers find it very difficult to get a reply to your inquiry. In many cases, you find a supplier online, you send an email or submit an inquiry form online, you wait for weeks but get no reply, then you call them, surprisingly, you found it is difficult to understand their English, or they don't speak English at all. So how should we do to get prompt answer from the supplier when you contact them and how to communicate with them smoothly? Here are a few tips we want to share. How to write a good email that makes sure the Chinesesuppliers give you a proper answer?-Use company email account. Don't use email account from free email provider like yahoo mail, hotmail, aol mai http://www.chinawhy.net/blog/Article.asp?id=66 ChinaWhy.Net 2009-11-4 Cheap Sea Container Shipping For Your China Products: Practical Advice On Pricing It seems very difficult for new importers to figure out the container shipping in China. Why should we use container shipping? How to get container shipping quotes? How to compare and get a cheap quote? How to choose shipping forwarder and shipping companies? What factors influence shipping prices? So on and so forth. We will guide you through on how to get cheap sea container quote. Why use container shipping?Sea container shipping isn¡¯t the only shipping solution, but practically it is most popular and cheap solution. You have air freight, sea freight and land freight to choose from. Air freight is very expensive, and of course fast. Sea container shipping is cheap, but it will take around a month to 45 d http://www.chinawhy.net/blog/Article.asp?id=65 ChinaWhy.Net 2009-10-15 Recession is over, business is back to normal, it is time to import from China again. There are many factors to consider, many knowledge to learn as to how to source from China. We will try to write down all aspects and process of sourcing in China to a single article, which I hope will show you the ins and outs of how to import from China. Step 1 Choose the right productsIf you run established business, this might not be an issue for you. Focus on the products you are familiar with and expand from there. But always open to new product ideas, to win over tough competition, you will need to provide products that your competitors can¡¯t provide. For newly founded import business, do a thorough market research of the product ideas. The best professionals you should use for such a research is http://www.chinawhy.net/blog/Article.asp?id=64 ChinaWhy.Net 2009-4-16 China sourcing ultimate guide Part 3 - Price Negotiation Price negotiation is one of the most tricky parts in international sourcing. But meanwhile it isn't that difficult if you do enough homework, research and follow some basic principles.Some misconception:I have visited China, people seem to bargain for everything, oftentimes we can cut down the price from 100RMB/pc to 10RMB/pc, so it is really hard to figure out where the bottom price is.Clarification: Sellers in low-end markets and stores do quote ridiculously high prices, waiting for buyers to cut it down dramatically, especially in retailing. But in international trade practise, the prices are quoted very reasonably as the price in the market is relatively transparent, so you shouldn't expect to cut the price down dramatically, li http://www.chinawhy.net/blog/Article.asp?id=63 ChinaWhy.Net 2009-3-9 top 5 issues to consider when doing business with China 1. Cultural DifferenceYou should already know that China has a totally different culture than your country, including Business Culture. Some approaches that worked in your country might not work well here. The first thing I would suggest is to hire a Cultural Consultant, so that you will know what is considered proper and improper behavior. 2. Know the Laws and RegulationsYou should know what Chinese Contract Law says before you negotiate a contract, what Chinese Company Law provide before you set up a JV, and what Chinese Labor Laws state before you recruit staff. Hire a professional legal consultant. 3. Bilateral Political RelationshipYou should be aware of the potential political risk, especially for investors from major western http://www.chinawhy.net/blog/Article.asp?id=62 ChinaWhy.Net 2009-3-9 Preparing for China Trade Shows: Part 3 of 3 Is it necessary to meet suppliers face-to-face at China exhibitions, and what should you do when you get there? This final installment highlights what you can do at the fair itself to get the most out of it. Some crucial questions You see an interesting product. Now what? Once you are talking to a supplier, it¡¯s an excellent opportunity to find out if this supplier meets your requirements. No matter what tradeshow you are visiting, some areas you¡¯ll want to cover are:•Price: What is the price? Is there Free On Board? (FOB means the supplier pays to get the goods to the Hong Kong port) Often the supplier will tell you the price per unit if you order 1 container¡¯s worth of the product. Make sure you understand what quantity is being quote http://www.chinawhy.net/blog/Article.asp?id=60 ChinaWhy.Net 2009-2-17 What are the advantages to meeting China suppliers face-to-face at trade shows in Hong Kong, and what should you do when you get there? In this installment we look at China Trade Shows and the types of shows that exist. What is a China trade show like? Hong Kong trade shows tend to have thousands of booths of suppliers, mainly from China, but also from other Southeast Asian countries. If you haven¡¯t been to one of these shows, the following videos provide a sense of what happens in such trade shows. They are taken from the China Sourcing Fair: Gifts & Home Products and China Sourcing Fair: Fashion Accessories. Types of China trade showsTrade show season every April and October brings a wide range of specialized shows. Suppliers display all their products for visitors to see, touch http://www.chinawhy.net/blog/Article.asp?id=58 ChinaWhy.Net 2008-9-19 Tonight, I found by random that a guy called Tony Yu from Shanghai, steal 100% content and design of www.chinawhy.net, this guy created a site called www.byclear.com, use all the same content and design. Below is a screenprint from that website: You can see, everything is the same with Chinawhy.net, except he change the name from Chinawhy to byclear.com. I also have his photo, and everything, but won't publish them at the moment. Tomorrow will give that guy a call to see what he want to do. This guy claim to have a MBA degree from Zhongshan University. I am curious how he will make use of that copycat website and how he steal everything from my website(Seems he has hacked my database), is he awared that: 1) a duplicate website will be banned by search engine http://www.chinawhy.net/blog/Article.asp?id=57 ChinaWhy.Net 2008-9-16 By Peter Zapf What are the advantages to meeting China suppliers face-to-face at trade shows in Hong Kong, and what should you do when you get there? In this first of three installments we talk about Hong Kong, especially for those that haven¡¯t visited Hong Kong previously. Hong Kong hosts a number of great trade shows that are easy to get to. There is nothing like meeting a prospective supplier in person to know what he can deliver. Knowing what to expect and asking the right questions will give you the best use of your time. The world¡¯s buyers have been flocking to Hong Kong for decades to find the suppliers they need for their business. Why? Because Hong Kong is a modern, world-class city. With its British influence, English continues to be commonly used. Most people speak English http://www.chinawhy.net/blog/Article.asp?id=54 ChinaWhy.Net 2008-8-6 2. Screen and verify China supplier Screen and verify supplier is just like dating. Someone you will lose interest at first sight, someone you will gradually find out that they don¡¯t fit you, someone you can¡¯t tell by appearance so you need to do some test/research to know if he/she is your Mr/Mrs. Right. If you do your homework properly, you will find a great partner, if you just chance your luck, you might be the lucky guy, but more likely, you will get a pain in your ass. Many buyers have been scammed by ¡°suppliers¡± or have contractual dispute with ¡°suppliers¡± due to the following reasons:a. they don¡¯t realize they should verify the supplier.b. they know you need to verify, but they don¡¯t verify them properlyc. they know they need to verify, but they don¡¯t have resources to verify the http://www.chinawhy.net/blog/Article.asp?id=53 ChinaWhy.Net 2008-8-4 China sourcing makes the headline in every main media. One fact can indicate how hot it is. Chinawhy have recently launched a PPC campaign on Adwords to promote China product sourcing service, we didn't make to first page when raising the bidding price to 1USD/click. In this article, we will try to cover all the issues and challenges you are facing when sourcing from China, including: find suppliers, screen and verify suppliers, price negotiation, contract negotiation, production coordination(follow-on), quality inspection, shipping arrangement, etc. 1.Find China suppliersa.Chinese Trade fairThe best place to find reliable China suppliers is to attend Canton Fair, which is the biggest trade fair in China. In 2008, more than 10,000 Chinese companies have attended Canton fair(spring session http://www.chinawhy.net/blog/Article.asp?id=52 ChinaWhy.Net 2008-7-1 We have answered hundreds of China inspection, quality control, trade dispute related questions in Ask Steven forum. Some of the questions have been asked repeatedly, some question can be answered by business common sense, while some questions need to be researched by our experts. You might find the answer to your question in this Q & A list. China due diligence and company inspectionQ: Can you help me find reliable iphone sellers in China? A: There are no authorized Apple iphone sellers in China yet. But there are millions of copy iphone makers & sellers out there. Don¡¯t try to buy international brand electronics like iphone, Nokia mobile phone, Toshiba laptop etc. from China, you will be scammed. For details, please refer to our blog post ¡° counterfeited product and scam in Chin http://www.chinawhy.net/blog/Article.asp?id=51 ChinaWhy.Net 2008-5-18 Business is about culture. It is extremely important to learn and understand the culture, logic and thinking of your businesspartnersespecially when you are talking about international business. My journalist friend Matt is writing a blog about China business culture, he writes many interesting and in-depth articles about the business culture here, you can check it out at bizcult if interested. Recently, a French friend send me an email asking if I can help him fill out a questionair about social and business life in China and how to deal with Chinese people. I found these questionair may also help our users to understand the basic aspects of dealing with Chinese both in daily and business life. With the French friend's permission, I would like to publish the questionairs and my answers http://www.chinawhy.net/blog/Article.asp?id=50 ChinaWhy.Net 2008-5-15 Internet is gradually becoming the No.1 media and source for people to learn, research, entertain and DO BUSINESS. E-commerce is booming in China like it is elsewhere. This article will mainly focus on B2B and B2C market as our users are mainly businesses/companies. In B2B market, Alibaba is dominating, it really change the way people doing business here, especially for small and middle sized suppliers in China, who haven't exported enough amount of products so they are not qualified to attend Canton Fair(which have high threshold and is a main channel for suppliers to obtain overseas buyers) and can't afford to attend the overseas trade fair. Alibaba claimed that it is an era of "internet business" several years ago and they set a mission to connect china small and middle size supplier http://www.chinawhy.net/blog/Article.asp?id=49 ChinaWhy.Net 2008-5-14 I am in a deep sorrow when I learned that the death toll in Sichuan Earthquake are approaching 15,000 by 2 PM today. My heart totally go out with them, I hope life will become better very soon there. God bless China!! 15,000 people have lost their lives over night, many more are buried under the debris waiting for rescue workers to come. But the transportation system was totally destroyed by the earthquake so the rescue workers can not arrive at the first time. My eye welled this morning when I saw the desperate cry of a little girl who lost her parents in the earthquake, the Premier Wen stood by her, but a powerful person like him also can¡¯t bring her parents back. How many children orphaned, parents lost kids, young couple lost lovers, how many home destroyed¡­.. This is really a dis http://www.chinawhy.net/blog/Article.asp?id=48 ChinaWhy.Net 2008-4-27 The China labor law revision is an issue concerned by most dicision-makersof wholly foreigned-owned companies(WFOE), joint ventures(JV) and representitive offices(RO) of foreign companies in China. The new labor contract law which became effective on January 1st, 2008 will greatly influence the industrial relations in China. This article will give some general analysis on the modifications in new labor contract law and its implications. Change No. 1 The definition of employerThe new labor contract law's definition of employers: enterprises, individual economic organizations, non-enterprise private entities and other entities, while the old labor law don't include non-enterprise private entities as employers. The new law has broader application scope. Change No. 2 Unfair employment relati