why you shouldn't deal with china!

**rejoice** · 07-15-2007 05:01 AM

A big part of the problem is that so many Chinese businesses only care about the immediate deal, and try to make as much money as possible. They do not see the potential for many, many orders to follow.

One of the biggest factors that makes this type of business practice possible is that most of Chinese business remains cash based, and as a customer sourcing something, you're going to pay 50% cash up front and 50% when the order is ready. In general, there are no terms given. You don't get to pay in sixty days. If something goes wrong, your money is gone. You will never see it again.

Communication is the biggest obstacle right now between China and the Western world. If you are fluent in Mandarin or Cantonese and can read this posting as well, go and spend time learning up on Chinese business and go there. You will become one of the most valuable pieces of business real estate, because you can communicate between two very very very different worlds. This is something both sides need.

The Chinese supply chain is driven by ladders of sales agents, who sell 'up the ladder' each adding their own markup of course. This creates tonnes of issues, your price is higher of course, but also, if something goes wrong, you're never going to get it fixed if there are six sales agents in the way.

Things go missing, and boats sink. They do not yet have the same regulations, check points and safety codes (and where they do exist, they are rarely enforced.) Boats sink.

Many of them will send you amazing quality samples but when it comes down to sending your final orders some places will ship you a mix of good quality items and a mix of items that are worthless, or close to it. I’m not saying everyone is like that, it’s around 50/50

Dealing with china or even Pakistan or other places these days is risky, so do as much homework as you can about the company you want to deal with.

I would like to say not all china suppliers are bad just like not all of them are good. Open your eyes,be cagey,then you can get what you want.

**PowerPython** · 07-15-2007 08:07 AM

Greta advice backed up by great reasons!

**crackah** · 07-15-2007 10:12 AM

Way to true, have you been burnt?

**funk** · 07-15-2007 10:13 AM

I agree - I bought 2 stuff in the past from China, both from Ebay

One - "Official" BillaBong shorts

Two - Street Fighter 2 Cammy Statue - Official again

When I got them, both were of bad quality

**Unreal030** · 07-15-2007 02:55 PM

I am more of an import from Mexico kind of guy.

**Ian** · 07-15-2007 03:58 PM

And they're commies dontcha know...

**JackIssac109** · 07-15-2007 04:36 PM

I think with Chinese suppliers, you have to know how to deal with them. I worked with a toy manufacturer in China; a company from Harbin in Northern China and they did wonders. Granted, we was actually on the ground there to inspect the products before they went in the shipping containers. The Chinese like to think that they can squeeze out every last drop of your hard-earned money if they try hard enough.

A couple tips I can give when dealing with them is

1) Be in China to actually talk to them; your presence is important

2) Bring a gift as a token of appreciation; trust me this helps amazingly. We brought the owner we were working with a bottle of Merlot and he was grinning like a 16 year old.

3) Don't deal with the middlemen, find someone who can speak or write Chinese, and look up the numbers for the factories directly and call them. Good electronics producers tend to be near GuangZhou, ShenZhen, and in southern China near Hong Kong. I stayed away from websites that linked you to Chinese companies and instead I found my own.

4) Safety codes. The Chinese consumer safety laws are enforced by local magistrates and these local office almost have sole discretionary control on what is acceptable and what is not. We found that in GuangSui and ShangDong provice, the codes are enforced the harshest. Also, more developed provinces also tend to enforce them stronger. Comparatively, some provinces take it as a mere piece of paper and make you post it on a wall in hope you will somehow read it and decides to follow it out of the goodness of your heart.

In the end, even though it was a good amount of work, we got an amazing deal. The quality was great and we had a good time dealing with them through our interpreter.

**Unreal030** · 07-15-2007 05:31 PM

This is all true. I did not have the time to post such things earlier when I noticed this post as I had to go out for a bit. However China has good products and service. They just operate differently then us. While I do not have personal experience with them yet my father had to travel quite frequently to China, especially Hong Kong and GuangZhou, to speak and do business with people when he worked for Energizer batteries as they have quite a lot of people working there. He has never had any issues there and all of their meetings and arrangements were of the highest quality.

One should not stereotype an entire country due to a bad experience with a certain group or product.

**Ian** · 07-15-2007 06:05 PM

Well yeah in all serious as an aside to my (obviously sarcastic) earlier comment, I think the Chinese economy is amazing..this one guy, he's like 26? I don't recall his name but he's a billionaire already, company makes electrical appliances.

And think of it this way, "red" china..he wasn't exactly born into his wealth now was he?

Ian

**Finandom** · 07-16-2007 09:03 AM

I have not deal with China people in business yet but I already heard a lot of news that Chinese people are good in bluffing. Even as a tourist, we also have to be careful in shopping or what...

**Grev** · 07-16-2007 09:19 PM

Originally Posted by rejoice

Communication is the biggest obstacle right now between China and the Western world. If you are fluent in Mandarin or Cantonese and can read this posting as well, go and spend time learning up on Chinese business and go there. You will become one of the most valuable pieces of business real estate, because you can communicate between two very very very different worlds. This is something both sides need.

I'm fluent in a few languages, English, Cantonese, Mandarin, Spanish, and over the past few months I have sensed that I could become something VERY valuble as well.

And you also have to realise that the cultural differences between Western and Eastern cultures, it can be something that's elusive yet it's fundamental.

Personally I haven't dealt with any of the actual mainland Chinese businesses since I was of Hong Kong decent and completely left for another-union-jacked country before the 1997 handover back to mainland China, although as a result, I can say that it's safe to deal with people that are in Hong Kong. The immigration from mainland China to Hong Kong is minimal so it's still relatively safe.

But yes, note on the cultural differences, it really helps.

**syia** · 07-17-2007 09:26 PM

great advice.. I have stop working with 1 guy from China.. he actually scammed me into buying a stolen good

**bulkylime** · 07-18-2007 08:42 PM

i was about to do buise=ness with 2 chinese companies glomarket and crdynamics.com (which i think i got from here) the people seem very nice when i talk to them but the problem is time diference it is 9pm in new york then its 9am in china basicaly i would i have to start buinsess early morning or late at night which would suck for me mostly since i'm in high school . plus payment methods and having a confirmation number is difficult to do

**SAMG** · 07-19-2007 01:24 AM

see I can't agree with this post 100%, maybe about 30% and here are the reasons. You get alot of people that one day wake up and go, hell I will buy some cheap merchandise from a chinese company and sell it here for alot less. They don't have the money needed, or the expertise. Yes China and America are very, very different in many aspects. But you can't say don't deal with them, cause then you are the one loosing out. 70% of the items you purchase daily, are made in China, or some part of them are made in China.

You get people who look around on the internet, are to stupid to do a little research and get scammed by someone they think is in China, when the scammer is most likely someone sitting at a desk 4 blocks down the road telling you they are a supplier from China, and you were dumb enough to take the bait. I have dealt with hundreds of suppliers in and around China, (I own a international broker business) yes there are scammers in China. But what would you say if I told you I wont deal with American suppliers because I got scammed from a guy in Mass? Because I have, but that doesn't make me say I won't deal with American suppliers. There are scammers all around the globe, its what you have to deal with on the net, so get use to it, learn how to identify a scam, or get out of the trade business, and use a broker.