http://www.chinawhy.net/blog/index.asp chinawhy.net's blog English images/logo.jpg http://www.chinawhy.net/blog/Article.asp?id=77 ChinaWhy.Net 2010-7-5 Managing the relationship with Chinese suppliers is not easy, the cultural difference, the language issue, the communication problem, China has another social system, different business culture and practice. Managing the relationship with Chinese suppliers is not that difficult at all, if you can answer one question: How do you define the relationship with Chinese supplier? Do you think your relationship with the supplier is equal? Do you think your order is a blessing or giving to the supplier? Do you often threat the supplier that if they don¡¯t do this or don't do that, you will change the supplier, as you said there were handful of qualified suppliers lining up for your order? The relationship should be equalWe recently read a story on the leading international trade forum fobsha http://www.chinawhy.net/blog/Article.asp?id=76 ChinaWhy.Net 2010-6-15 "Certifications You Need To Know" New importers sometimes may be puzzled by so many certifications, such as UL, CE, FCC etc. You may wonder: what are these product certification standards? Which countries and product categories they apply to? In this article, we will give you a complete guide of the major products certifications. CEThe CE marking (also known as CE mark) is a mandatory conformity mark on many products placed on the single market in the European Economic Area (EEA). The CE marking certifies that a product has met EU consumer safety, health or environmental requirements. Countries that adopt UL certification: EU countries. Which product categories UL apply to:Examples of European Directives requiring CE marking include toy safety, machinery, low-voltage equipment, terminal http://www.chinawhy.net/blog/Article.asp?id=75 ChinaWhy.Net 2010-5-28 It is always a good habit to visit the official website of any exhibition before prepare your business trip, there are always great resources out there we have neglected. You don¡¯t have to attend Canton fair to get supplier informationSeriously, you don¡¯t have to go to canton fair every year to gather supplier information and new product ideas, especially for small and medium size business. On Canton fair website, you can search a list of exhibitors in your industry who attend the recent session of Canton fair. You could go to the following link http://promoter.cantonfair.org.cn/?version=en, you could search by company name, product name, for example, if you are LED light buyers, you could search LED by company name, then you can get a list of 207 exhibitors who attend 107th canton fair, http://www.chinawhy.net/blog/Article.asp?id=74 ChinaWhy.Net 2010-5-2 This is not my first time to visit Canton fair, I have attended the fair several times both as exhibitor and buyer, however this is my first time to make the preparation(the ticket, hotel reservation, transportation planning etc), so I have quite something to say on how to make your canton fair trip much easier. Application and registration for Canton fairBoth regular buyers and new buyers need to apply for invitation letter, with the invitation letter, you could apply for visa, the invitation letter is also necessary when you apply for free entry IC card at exhibition complex. The following documents are needed to apply for free entry IC card(this IC card can be saved to use when you come to canton fair next time): printed invitation letter, your passport, passport photos. I would sugg http://www.chinawhy.net/blog/Article.asp?id=73 ChinaWhy.Net 2010-4-12 Sourcing from China is a technical job, you have deal to with issues like Chinese laws and regulations, policy, tax, insurance, shipping, payment, certification, lawsuit, etc. In many cases, overseas buyers are struggling to figure out where to find correct information, who to contact, which place to make complaint. We would like to share a list of online resources that you might find interested to your import business from China. 1. Foreign Investment(FDI)FDI is the best place to find both English version and Chinese version laws and regulations. It has compiled the most complete list of laws and regulations introduced by Chinese governments. It is free to use. FDI is also a great resources for overseas investors, with complete list of government policy and in-depth interpretation of th http://www.chinawhy.net/blog/Article.asp?id=72 ChinaWhy.Net 2010-3-18 We have been advising our clients to make payment to company account only, however,when sourcing from china, oftentimes you find you have to send money to third party account, it might be a business account of export company, a business account of offshore company in Hongkong or a personal account of the factory owner. How can you secure your payment if you have to make payment to a third party account? Generally, in following situations, the suppliers will ask you to make payment to a third party account:1) Make payment to export companyMany suppliers in China don¡¯t have direct import and export certificates. Import and export certificate is not difficult to apply, however, you will need to hire 2 to 3 experienced professionals to handle tax rebate, customs clearance, document preparatio 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 chinaimporting 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/ http://www.chinawhy.net/blog/Article.asp?id=70 ChinaWhy.Net 2010-3-2 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 Equipment: Production Lines of Various Light Industry Products Small m 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=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