China Sourcing Guide — How to Source from China

Why Source from China?

China remains the world's manufacturing powerhouse, producing everything from electronics and machinery to textiles and consumer goods. For international buyers, China offers competitive pricing, massive production capacity, and increasingly sophisticated manufacturing capabilities.

Step 1: Identify Your Products and Suppliers

• Trade shows: The most effective way to meet verified suppliers face-to-face. Key shows include the Canton Fair, East China Fair, Yiwu Fair, and specialized industry expos.
• Online platforms: Alibaba.com, Made-in-China.com, and Global Sources are the major B2B platforms. Always verify supplier credentials — look for Gold Supplier status, Assessed Supplier badges, and years in business.
• Sourcing agents: Local agents can help find suppliers, negotiate prices, and handle logistics. Typical fees: 3–10% of order value.

Step 2: Factory Visits and Verification

Before placing a large order, visiting the factory is essential. Look for:

• Clean, organized production lines
• Quality control processes (ISO certifications, testing equipment)
• Real production capacity (not just a trading office)
• Existing export experience and references

If you cannot visit in person, hire a third-party inspection company like SGS, Bureau Veritas, or TÜV Rheinland for factory audits ($300–800 per audit).

Step 3: Negotiation and Contracts

• FOB vs CIF: Most suppliers quote FOB (Free on Board) prices. Understand Incoterms before negotiating.
• Payment terms: Standard is 30% deposit, 70% before shipment (T/T). Letters of Credit (L/C) are used for large orders.
• Contract essentials: Product specifications, quantity, price, delivery date, payment terms, quality standards, and penalty clauses.
• Samples: Always request pre-production samples and keep them as reference for the final shipment.

Step 4: Quality Control

• Pre-production inspection: Verify raw materials and components.
• During production (DUPRO): Check 20–50% of production to catch issues early.
• Pre-shipment inspection (PSI): Mandatory — inspect a random sample of finished goods before shipment. AQL 2.5 is the standard acceptance level.
• Container loading supervision: Ensure correct quantities, packaging, and loading procedures.

Step 5: Shipping and Logistics

• Sea freight: Most cost-effective for large shipments. Transit time: 15–40 days depending on destination.
• Air freight: Faster (3–7 days) but 5–10x more expensive. Suitable for samples, urgent orders, and high-value small goods.
• Rail freight: Growing option for Europe and Central Asia (15–20 days).
• Customs clearance: Work with a licensed customs broker in your country. Have all documents ready: commercial invoice, packing list, bill of lading, certificate of origin.