Business dealing with China

千人千般苦，无人苦相同

Thousand people thousand suffer, each difficulty is different

Further question is how to be categorized scale 1 – 2 – 3 manufacturer?

You have to asking how is the factory size and employee number there?

Scale 1 small: 10 – 50 employees,

Scale 2 medium: 100 – 200 employees,

Scale 3 large: 500 employees up

Anyway, it depends on industry type as well. Some manufacturer using much machine, so 300 employees will be lifted them up to large scale but in case still in 200 employee even using machine or automatic equipment it so call medium scale yet.

How is China goods quality?

I have to say there are still good quality on the land, do not forget IPhone is produced (Assembly) in China, most of brand name notebook are produced (Assembly) at China but the problem is, are you sourcing out the manufacturer? Because of mostly you will find manufacturer type 1 and 2 small and medium, low grade quality even copied brand name. You should sourcing brand name or OEM’s manufacturer which it is so difficult to be sourcing out. The goods in Global Hypermarket mostly will be from medium scale factory, this is the best one. Unfortunately, some Hypermarket can source it from small scale factory by the way.  

How to do if you have a small volume to ordering???

The answer for this question is you must find acquaintance or seeking for third party which we will call Customer Agent “CA”. 

This supplier will source the goods from many manufacturers to be selling. Trading fair, you can find this type of Customer Agent but the price will be marked up and product claimed is unacceptable

2 types for product claim normally done by manufacturer as follows;

1. 10% over quantity per order i.e., they deliver the goods 110 sets but in the price of 100 sets

2. Contract Note or Contract Agreement i.e., 1 – 3% defective per lot is acceptable (depends on type of product). Ship back to factory will be claimed in case over quantity as per note and/or agreement. Please be done, do not pity, respects your benefit.

Remarks: above 1 and 2 totally done by negotiation, do not asking for the manner or hospitality if you do not asking by yourself.

Business dealing with Chinese guys!!

• Face to face is very important if you are dealing with manufacturer.
• Now a day, Chinese people especially entrepreneur think of Mainland China is the World Trade Center (Due to Xinhua Press). This will be brought them to be nationalism, Chinese language a little bit (a much is preferably) will make a good impression and make a smooth starting.
• Technology of mailing, chatting, calling is the good alternative but are not the best alternative to be done.
• Big discount will be followed after hang out and drunk if you clubbing and get along with entrepreneur.
• Chinese Cuisine culture is different from Thai and Western, it means terrible taste if you keep quiet while dinning.
• Business dealing with Mainland China does not talk about Taiwan topic. Meanwhile business dealing with Chinese Taiwan does not call Mainland China as ‘China’, please call them ‘Mainland’ instead. In return call Taiwan as Taiwan country
• Do not give a clock to be present because of in Chinese language tone similar to Go to Hell. 送死