China Import & Business News: June 2009

Exporting to China - 10 Steps to find the Chinese buyers (ezine article series)

Many business women/men are dreaming about selling their products or services to China. Is it really possible, even for small business owner to succeed in the Chinese market? YES it is!

If you start on your own, you need to work very hard for 3-4 years, to achieve success in China export business. But according my experience, if you follow these easy 10 steps, you may shorten this time to 1 year.

1- You must have a website with informative content about your product and company. My advice: add a Chinese language option. Most business owners in China don't speak English.

2- Advertise on Chinese business directories. Much more powerful, if the ad is in Chinese.

3- Find possible buyers from search engines and contact them via e-mail. Introduce yourself, your business and your company. If possible in Chinese language additional.

4- After you found some possible buyers, you should build relations with the owners, general or import managers of these companies.

5- Exchange samples to understand the buyers real needs.

6- If you participate on any international trade fair, you should inform and invite your possible Chinese buyers. Even you think they will not visit your booth, but they will see that you are in international business and this will make them more confident about your products or services.

7- You should participate at least at 1 big international Chinese trade fair, which is popular for products or services, like yours.

8- You should visit each possible buyer. Calculate at least 1 day for each company. In China, usually the business decisions made during dinner.

9- If you don't speak Chinese, you should arrange a tutor with good translation skills for these meetings.

10-Promise them, that you will seriously consider, having a representative office in China and they don't need to worry about the after sales service.

The above 10steps are to ease your way, to successful business with China. Of course it needs some investments and efforts to achieve success in China. But what is for free today? If you need more free information, you might visit my blog or our company website. Don't hesitate to contact me for professional assistance in China.

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Launch Your China Business Within 10 Days (ezine article series)

China Canton fair is a great opportunity for small to mid-size business owners, aiming to start their import business from China. But how and where to start? Here is a checklist and some advices, things to do before arriving in China, for visiting Canton fair.

  • identify the right phase from the organizer's fair-schedule, to be able to locate the right suppliers for your item at the fair. Canton fair has 3 phases, each phase is 5 days.

  • Book your flight ticket to Guangzhou or Hong Kong. Flights to Hong Kong are more common.

  • Book your hotel in Guangzhou, Dongguan or Shenzhen. Guangzhou is very expensive.We prefer to stay in Shenzhen.

  • Apply your visa for China.

  • Identify and locate your possible suppliers. Make a list with their booth numbers.

  • Prepare at least 200 business cards and some other PR material of your company.

  • Prepare a passport picture. You will need it for the Canton fair badge.

  • Prepare some samples, you would like to show your possible suppliers.

  • Search for a tutor. It is necessary for the communication with the Chinese suppliers. Only few can speak and understand English properly. You might test his/her English level first. Don't be to stingy, choose the best.

If you want to start your China import business as soon as possible, i would recommend you to cooperate with an import consultant like us. They can organize your whole China business trips or your fair visits, like Canton fair. It is the most secure way to launch your China Business. For more details, you are welcome to visit our website or blog.

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China Import Business - How to Achieve Success For SBO's (ezine article series)

China is still the biggest manufacturer and exporter. Even in economic crisis times, China is still an important business partner to hundred thousands of small business owners, all over the world.

Many of them made some imports, using b2b websites or other online directories. Some have never been to China, but found the right supplier and could set up a successful relationship. But many couldn't achieve their big Chinese dreams. Even some have lost money, in huge amounts. Because of the high failure rate, the majority of midsize and small business owners, even didn't attempt to import from China.

Yes, it is really risky to import from China. Especially, if you don't have your own team in China. As this may causes too high of expenses for a small business owner, there is another cost effective solution:

To cooperate with an import consultant. It is vital, to have an experienced professional, as a partner in China. Understanding the local business mentality and in first line your needs, is the most important key -to success. Advise: Choose a consultant with western origin, who can show some international references.

This kind of professionals, can prevent any misunderstandings between you and the supplier. Solve any possible problems, that can be caused by manufacturer side. They can be your eyes on the whole procedure, till your goods are shipped. And not forgotten, it is possible that you want visit China and your suppliers, which is important for long term cooperation. In this case your consultant will organize all your trip and assist you, visiting present and new Chinese suppliers.

China Trading - Dealing with Letter of Credit

Here is a brief introduction of L/c:

A Letter of Credit should be China importers most used international trade payment term. By opening a Letter of Credit it promises payment, provided the seller complies with the terms and conditions inside the Letter of Credit. The Irrevocable letter of credit can't be canceled or varied without the approval of both parties. This type of L/c, is the most common and preferred one, in China.

A bank issues a letter of credit (L/c) on the behalf of buyer or importer under the following conditions:
a) When an importer is importing items to its own country.
b) Any purchasing, where products from the country is sold to another commercially.
c) When an exporter from China is executing a contract outside his own country, importing items from a third country to sell to the second party.

These 3, are the basic, to obtain a letter of credit in present day of trading.
There are certain charges and payments, related with this sort of trading terms. The issuing bank charges the applicant costs, for opening a letter of credit.

The fee depends on the credit of the applicant, and primarily consists of:

A) Opening Charges: This comprises of promise and procedure charges for the time of the letter of credit.

B) Retirement Charges: This is to be remunerated when the time of letter of credit ends. The bank offering the letter, analyzes the bill according to UCPDC (Uniform Customs and Practice for Documentary Credits), and tax charges based on cost of goods.

There are some risks also, that are connected opening this kind of account:

• Basic risks : Financial position of the Importer, the products involved the exporter, national and foreign exchange risk.

• Quotation can be another important risk factor, related with all forms of international trade. All banks evaluate their risks on the above mentioned criterias, before issuing a letter of credit.

Best Chinese Manufacturer Directory

This is a really good question:) Ok, many of you will say or Everyone is representing his/her own experience. Some really are/were lucky, in finding a reliable supplier. But some have experienced "nightmares".

As a professional import consultant and sourcing expert, i made a deep research and rated the directories, according my knowledge. I hope it will help all new-starters (and some disappointed veterans).

#1 :
With the most members (paid and free), it is still the biggest directory. No wonder, it has the most visitors and it is the most popular China manufacturer directory. It is very user friendly and always updated. But be aware of the "scammers" ! Even paid members with 1-2 years "gold supplier" labels, can be one of them.

Whois info: Corporation-Room 2403-05 Jubilee Centre Wanchai Hong Kong SAR
" Corporation" owns about 517 other domains.
Visitors by Country: China 43.4% India 10.8% United States 9.2%Indonesia 2.6% Pakistan 2.6% Great Britain (UK) 1.9%
Visitors by City: Beijing 11.3% Shanghai 6.2% Shenzhen 5.1%Hangzhou 3.4% Guangzhou 3.2% Madras 1.5%

#2 :
It is not only a directory for mainly Chinese manufacturer and trading companies. They sell also physical catalogs and sourcing reports. The paid advertisers are more professional and reliable (my personal opinion). Amount of member is much less.

Whois info:Trade Media Holdings Limited
c/o 4718 E. Cactus Rd., Ste. 108 Phoenix, AZ 85032 USA
Visitors by Country: United States 26.5% China 15.7% India 12.5%
Great Britain (UK) 3.6% Indonesia 2.6% Australia 2.5%
Visitors by City: Shenzhen 6.6% Shanghai 4.8% New York 2.5%
Madras 2.2% Bombay 2.1% Beijing 2%

#3 :
According to the amount of members, it is the second biggest directory, after An advantage here would be, that the gold suppliers are visited at least 4 times (according to their statement). Easier to find reliable suppliers.

Whois info: Ningbo HuiMei Information & Technology Co.,Ltd. Room 407 Chuangye Building NO.66 Yanshi Road
Ningbo National New & HiTech Industrial Development Zone - CHINA
Visitors by Country: China 30.7% United States 19.2% India 8.5% Iran 3.1% Australia 2.8% Indonesia 2.6%
Visitors by City: Beijing 11.7% Shanghai 4% Shenzhen 3.9% Hefei 3.7% Wuhan 2.5%Guangzhou 2.4%

Conclusion: All 3 directories are great sources, especially to professionals. I mean "professionals" of sourcing in China. New starters may read my previous article, which was also published on

Blogger's Choice Awards (Off topic)

I am sorry for writing "off topic" again! But look at the picture, the race is hot:)

Blogger's Choice Awards is the most popular user-generated blog voting site on the planet! As you can also see from the banners, on our right, we are nominated for 2 catagories:


And our "twin" blog in turkish language is nominated for:


Please do support us, too! Votes for our 3 nominations.

The registration, to be able to vote, is very easy! It takes 4-5 minutes, including voting. register here
You can discover, vote and nominate other blogs, too.

Thank you in advance!

Blog Directories Submission (Off Topic)

It is really "off topic", but i had to write an article about blog directories.

After searching the web preciously, i found 2 sources, which allowed me to subscribe to almost the best blog directories on the www.

Except 2 of them, i submitted my blog for free! I will not mention these blog directories (you can see them clearly on the pic), but i would like to say some words to the admin of super blog directory(the only directory, which rejected my submission 2 times):
"look at this picture, sbd will be never listed in my blogs again" (i am really disappointed).

Anyhow, i listed the best (most popular) free blog directories on this blog, for my visitors and followers. You can choose which ones you like. I like them all and our traffic is increasing, day by day:)

Thanks to all free blog directories , allowing us to promote our blogs!

P.S.: soon we will submit to eaton and botw:)

5 Big Mistakes Made - Importing From China (ezine article series)

Mistake 1: Never take sourcing too easy.

Finding suppliers from b2b websites is getting more difficult. Take advantage of professional sourcing companies. You may read my article "china manufacturer sourcing", if you want go your own way.

Mistake 2: Don't communicate on line.

Be sure that your supplier understood 100% what you want. Communicating through e-mails is more effective and reliable, than chatting with some programs like "trade manager" or "messenger". Most of the sales representatives in Chinese companies are using translation programs. And anyway Chinese people are used to say "okay" and "no problem" in most cases. Let them confirm your order by e-mail.

Mistake 3: Don't fear some costs for the cargo of samples.

Secure your order by confirming with samples. If you want to order o e m, you should send a prototype or formula with exact specifications. The manufacturer will ask you for possible mold and material costs. Negotiate a pay-back after reaching a certain amount of order. Re-confirm by receiving samples, they have produced according your wishes.

Mistake 4: Never ask for CIF prices at first.

Request quotes on FOB basis. Its easier calculation for the supplier and you have the control of shipping your goods with your own forwarder. Cheap solutions from manufacturer side, can cause delays and damages of your goods.

Mistake 5: Never decide for the supplier, before you have visited their factory.

China may be far away, from your country, but it is a must for a smooth and long term relationship with a Chinese manufacturer. As you will make the far way to China, you should consider to visit at least 4-5 suppliers, before you decide. You may need assistance from consulting companies, who are western origin with local experience. They can organize all the meetings in China and assist you with translation, during factory visits.

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China Manufacturer Sourcing (ezine article series)

How to source for a reliable Chinese supplier? There are many ways to do it. Like, b2b websites offering suppliers, some with labels like "gold supplier". These are only paid members, which can be done by any company. There is absolutely no guarantee that they are reliable.

Another way would be, to visit trade fairs in China and meet the suppliers directly. According my 6 years China experience, I know that 70% of the exhibitors are trading companies. Only if you have a well organized schedule, you will be able to find the right suppliers, out of thousands exhibitors. Now, I will tell you some secrets, how professionals do sourcing. The best way to source on line, is to search through search engines. Put in your product and search. Usually, you will find the b2b websites in the top results. No problem, go on and search there. Make a list of 4-5 factories, which you can find common, on most b2b websites.

Check their own websites. A serious supplier should have a website in English language. Compare the contact information. If they are same like on the b2b websites, go on to search the "who is" info. Are the websites registered with the same company name, go on in searching again in Google, but this time, only with full company/factory name. Check at least 20-30 results. After all this, you now know, that you have found some serious suppliers. Its time to contact the suppliers. Write a detailed, common inquiry with easy English. Send it to all as one mail. Let them see that you contacted their competitors, too. It will be like an open bid, enjoy it!

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