How to start business with China

How to start business with China

Сообщение HainanWel.com(e)! » 16 фев 2015, 19:28

What are the problems most commonly faced by novice?
Lack of business ideas;
Difficulty to start, since you do not know where to start, fear of failure, the failure;
Search start-up capital and ignorance of what is possible without making major investments;
Too low income from established businesses;
Ignorance of effective schemes, which need to act in order to get a good income from businesses on goods from China.

What does it take to start a business from scratch with China and succeed?

Choose the right areas in which you will develop;
Familiar with the different business models on goods from China;
Get practical skills with suppliers;
Choose a profitable product;
Be aware of possible difficulties on the path to success and be able to pass them.



Consider what aspects should be considered in order to successfully start a business from scratch with China.

Working with suppliers
Opening the business from the ground up with China in the first place, you should check the manufacturer, which is scheduled to begin collaboration on the quality and reliability of its products. Unfortunately, many businesses allow one very big mistake: they are initially too trusting. Should not believe the quality of product samples. Promotional products can not give an exact guarantee that the manufacturer will release a whole lot of just such a product without making it any changes related to the cheapening of the whole batch.
Often the presentation goods produced with intentionally inflated level of quality. Based on the statistics, the products presented in presentations always coincide with a series of only 20%. You can verify this by gathering all the documents and certificates, as well as adding the company is the manufacturer or reseller.

drawing up a contract


Starting a business from scratch with China, it is necessary to conclude a legally-competent contract with the Chinese law. Must be considered in the same position PMO USSR-China and Chinese standards of GB. Be sure to specify the place of arbitration. Better to resolve disputed issues in a court located in China. The treaty should take into account the packaging standards, establish terms of delivery and payment, to determine the percentage of possible marriage and contain options for the selected product. Contract must be drawn up in three languages: Chinese, English and the language of the customer.

production control

Independent inspections will help identify the true quality of the product, rather than the way in which it is described. Regular independent inspection force manufacturers to follow the rules in the contract, without making any changes without prior notice of the customer. Most prefer to check the goods before delivery. That is, goods, descended from the conveyor and preparing for shipment, will be checked for compliance with the agreed rules. This is done in a few days, the chosen randomly goods in the amount of several copies of each batch is tested in the laboratory. But the most economically and strategically overlooking inspection (inspection), is a test at the beginning of production. In this case, the marriage will be stopped immediately after it is detected at the manufacturing stage. Thus, the customer can independently carry out quality control and correction of the ordered goods.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 18 мар 2015, 17:03


China for beginners: how to do business in China

What entrepreneurs need to know to succeed in China: Tips Russian lawyers


The history of the work of Russian entrepreneurs in the Chinese market has more than 20 years, many have been able to make the right connections and gain valuable experience that allows to produce or purchase goods quality, enjoying a real demand in the Russian market.

Examples of success, make more and more of our fellow citizens to pay attention to China. A huge new market seems Klondike, and trying to get him relatively small and inexperienced players. However, they do not always take into account that business in China is associated with many risks, many of which are simply not ready.

Risk of fraud

From the outset, it is worth remembering that Chinese businessmen are not so afraid of losing the client that may be related to the population of the country. China is rightly enjoys the reputation of the "world factory", where you can find almost any product. But, unfortunately, not always contacts with Chinese suppliers lead to the desired result: sometimes partners simply disappear after receipt of payment and stop to get in touch.
Typically, the amount of deposit to start the relationship with China is $ 20 000 - 50 000. For unscrupulous partners such amount is considered sufficient to go to the fraud, because they are convinced of their impunity. Too much will have to incur costs to the Russian side on the wanted list of those responsible and bring them to justice, and too small probability of recovery of such amounts.

A typical case in practice trading with Chinese firms is fraud chemical products, such as polyester. Unlike clothing or toys to check the quality of chemicals and plastics is difficult. Especially that scammers usually stock up examination results (issued on a small sample of the goods) and make sure that it sent the goods quality that stipulated in the contract.

Starting a business in China should be wary if a counterparty is located in Tianjin, Shijiazhuang and Jinan.

These cities - a kind of "golden triangle" scam. However, unscrupulous companies may be, and from other cities. As a rule, they have a Hong Kong or offshore registration. Immediately you should pay attention to the press: the company from mainland China must be red round seal with an asterisk in the middle. Do cheaters can be a real office (shot on a month to sign the contract) and a bank account (an offshore account opened by Chinese banks to foreign companies). But when checking on the basis of the Chinese Commerce Administration turns out that a company in China is not. But when checking in Hong Kong - the company with the same name is registered.
It should be borne in mind that scammers do not bother developing websites: they have a very simple site or in English (of course, being in a foreign hosting), or even one page on any B2B-service.

Read the contract

The treaty, Russian investors are not always take into account the peculiarities of Chinese law. As a rule, contracts with Chinese partners for beginners Russian businessmen are in Russian and English, because it is cheaper than a translation of the text into Chinese. That's just from the traps it does not save. Can give an example, when the Russian version of the document the parties have agreed that 50% of the total cost of each order is paid as an advance payment and the rest buyer lists within three working days of receipt of notification of readiness for shipment, and in the English version it was no longer a prepayment, and the deposit. In this case, the contract stipulated that the English version prevails over the Russian.
Unlike prepaid deposit under the laws of the PRC is not refundable pay it aside in case of failure to perform the contract.

That is, if the delivered goods are not satisfied with the quality you, your money, you will not return. In this case, it is clear that the agreement is not a lawyer and was preparing for a basis was the standard English text, most likely, proposed by the Chinese side.

Another common trick is to include in the contract obviously impracticable clause on dispute resolution in the arbitration court. Virtually all contracts arbitration clause is constructed so that it will be Chinese law or invalid, or very controversial. Can be specified a nonexistent arbitration or arbitration with uncertain status, such as a branch of the China Economic and Trade Arbitration Commission in Shanghai, whose authority the commission itself (the main arbitration institution in China) does not recognize. May also be referred to just two Chinese arbitration commissions - that of the PRC Law "On arbitration" makes a reservation is not valid without additional agreement on the choice of arbitration institute.
How to avoid becoming a victim

Before you sign anything, it is necessary to check a potential partner in the base of listed companies. This will allow to understand whether there is a company in China, which she registered authorized capital and paid whether he what she permitted activities and who is the legal representative of the company with the right to sign contracts without a warrant. It will be possible to evaluate the stability of the counterparty and the possible risks.

If you find that the company has just been created, or is losing, avoid prepayment terms of the contract.
In this situation, the letter of credit, for example, can be an excellent way of calculations that will protect you from the risks.

Finally, in China necessarily need to control when shipping goods (pre-shipment inspection). Such control may hold spokesman for the Russian buyer, if it is possible to determine compliance with the specifications by simple inspection. But if you want to check the entire consignment of goods, it is recommended to attract the expert organization, which will issue a certificate.

Sign in with Hong Kong

For contracts with Chinese suppliers Russian businessmen often establish a company in Hong Kong. In this case, the ease of doing business in the Special Administrative Region (SAR) of China into the hands of fraudsters is not, as a bona fide businessmen. The right of Hong Kong, based on English, can successfully protect the buyer of Chinese goods. Therefore, the contract is recommended as the dispute settlement body to indicate the Hong Kong International Arbitration Centre. In the case of rendering its decision in favor of your Hong Kong company the probability of its enforceability in China is high.
It is important to note that in contrast to mainland China to Hong Kong to foreigners is much easier and quicker to set up a company. Creation of Russians directly in mainland China is quite costly, and, moreover, pointed out the problems of using Russian passports for the founders. A real example: the Chinese refused to accept the passport, since it must be replaced every five to ten years, which means that it "change data" and the Chinese proposal "legalized by the Embassy of the Russian passport" refused to comply with the Russian Foreign Ministry, which did not even realize the essence of the request .

The undoubted advantage of Hong Kong as a jurisdiction for the registration of international trading companies is the lack of VAT.

The tax rate on corporate profits is only 16.5%. Applied territorial system of taxation of profits, that is, a tax is chargeable only on income from sources in Hong Kong.

The advantages of using Hong Kong companies to work with Chinese partners are based on the Agreement of China and Hong Kong SAR of the Closer Economic Partnership on 29 June 2003. Under its provisions, among them a simplified regime of trade and investment. Interestingly, according to the agreement made in Hong Kong goods are exempt from customs duties on importation into mainland China.
Thus, doing business in China - an easy craft for Russian businessmen. For the sake of future profits must make considerable investments already in the planning stages of business processes. The presence of a professional representative in China is the key to minimizing the real risks. In addition, it is impossible to save on legal services, which, firstly, will help to create a legal basis for further work, and secondly, provide sufficient security when choosing Chinese contractors.

Forbes
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 25 мар 2015, 17:50

Benefits from a trip to China

When you receive samples and make sure that this is what you need, you can start to gather in China. It is necessary to go to see for himself. Even if you can not sign a contract, in any case, the experience of getting acquainted with China is valuable, and I think that your trip will not be in vain.

Here are a few benefits that you will receive, personally visiting China:
• In person will see who you are dealing.
• improve their status in the eyes of the Chinese.
• Rate-term relationship.
• Feel the difference in the manner of doing business, at the same time and you will understand why they are "not as" we.
• Make sure the vastness of choice of products in the Chinese market.
• Finally, an unforgettable experience on the culture of this country and culinary delights!

Getting Started on arrival

The trip to China has been more effective if you combine time visiting factories with specialized exhibitions. There you can see a lot of companies, chat live with the producers and intermediaries, "feel" products. And still be able to make appointments at the exhibition with the companies with which you have already established contacts in the network. Even if they will not participate, then just come to look at the achievements of their peers.

So you've decided to go. Take care of the visa in advance. Ask potential Chinese partners to send you an invitation. I think that this will not have problems. If under any pretext they refuse to help with the invitation, please note - this is a bad sign. Specify whether the original invitation to the embassy. When you receive an invitation, go to the embassy and apply for a business visa. Buy the ticket. You can also ask your partner to stay for you or you can do it yourself sites www.ctrip.com, www.elong.net, www.sinohotel.com.

Do I need a translator? Need more room for complacency and more confidence. Search translators can be done on the Internet. Translation services, depending on qualifications will cost 700-1000 yuan per day.

I am sure almost 100% that you will not have to deal with the factory, but rather with the mediator, who speaks English at an acceptable level, or provide an interpreter. Even if your spoken English is very bad, do not worry too much, the Chinese have it no better. Therefore, do not be nervous about your level.
However, upon arrival in China:
• Do not expect that the Chinese will meet you at the airport or provide transportation. Plan your trip so that no one could depend.
• Do not expect that you will find in China a taxi driver speaking in English - here it is very rare. Ask you to write Chinese Name Address in Chinese. Moreover, always keep ready the phone number of your Chinese partner, so that if necessary you could dial his number and let him talk to the driver.
• If you are traveling in the Chinese metropolis, learn to correctly calculate the time. Believe me, the streets of big cities in China sometimes resemble Babel.
• Do not eat in China everything, even if you love culinary delights. If your stomach is not accustomed to such food, then either disappointed or ill.
• If you are invited for dinner, then get ready for the fact that the meal with the Chinese you have to drink a lot. If you do not drink, better arrange another time and place for the meeting.
• Always carry cash in RMB, as your credit card will be rather useless outside the hotel.
• Have you come up with a Chinese name and Chinese as possible is the name printed on the reverse side of your business card.

If you have and the legal address, title, and other information, it would be nice and print them in Chinese. Bring as many business cards - you need them, because the rules of etiquette are usually given a business card to everyone with whom you conduct business talk.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 26 мар 2015, 16:00

How to calculate the break-even point

Break-even point - it is a state of the business, where profit is the cost. Net profit is zero.

This is an important parameter in business planning. For example, you decide to open a shop, found the good in your opinion, the place and now we have to make preliminary calculations of projected profit magazina.Dlya it is necessary to define the forecast turnover or sustainer mode store. Then, to make the calculation of turnover in the break-even point. The difference between the turnover in the marching mode and turnover of break-even point will show the attractiveness of this business idea.

Let's make the calculation of break-even point on the example of the store.

To do this, we need to know two parameters: the total costs and interest margins.

Our costs:
Rental 150000 rubles
wage fund of 130,000 rubles
Other costs 15,000 rubles
Total cost: 29,500 rubles
The percentage markups or realized margin (% LV) - 28%

The formula for calculating the breakeven point:

TO (trade at breakeven) = cost x (1 +% RN) /% PH

TO = 295000h (1 + 0.28) /0.28

Turnover in the break-even point is 1348571 rubles.

Now we need to determine the forecast turnover. The more the forecast turnover exceeds turnover at breakeven, the greater margin of safety for your future store. Calculation of break-even point is always reflected in the business plan.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 15 апр 2015, 20:36


5 things you need to know about the suppliers from China

Suppose you have a business and would like to work with the Chinese. You have already cooperated with foreign businesses, and all went well. And now for some reason you think that with all the businessmen of China will be exactly the same as with the Europeans or the Eastern Slavs. We believe that it would happen. But. Here is a short list of "rake", which you may occur:
1. It is important to know and understand the structure of the product, which in the end you want to get

Constantly there are small companies that do not understand what it is made of their own product. Often they receive goods from a Chinese supplier, made the prototype or design project, and all the technical parameters and specifications remain with this supplier (or manufacturer), not the recipient. As a result, the client is aware of the bad Panton, specific weight, material grade, finish, etc.

Foreign businessmen often ask for prices with Chinese merchants, but are not interested in even the most general specifications. At a minimum, this would mean that the valuation of the goods you have made as accurately as possible.
2. Many people do not realize that in China, as elsewhere, there is the concept of "window of opportunity"

The Chinese market is volatile suppliers. The seller can offer a good price today, and three months later, when you want to extend the relationship, the price can be three times higher. If you are not sure that you are going to work for a long time with new partners in China, do not spend a lot of time on the negotiations and overtures. Chinese is very capricious. If your time to you spend it, and you, in the end, take a timeout, then the return to negotiations, perhaps you do not want to work. Well, because I already have a new big order. Or not taken.
3. It is important to immediately calculate the costs associated with production in China

There is a huge amount of additional costs associated with the production of the ocean, since mailing costs, such as FEDEX, - for sending samples. And, most likely, will have to hire third-party consultants and conduct quality control checks of your order - before he leaves China. Some of these costs can significantly increase the cost per unit of your product. Make sure you know your real costs when computing the amount. Mortgage costs for external verification costly part of your project. Many small businesses think that such control in China - a luxury. This is - a necessity.
4. Do not forget about the so-called due diligence

Almost no one in the beginning does not take into account the fact that sometimes the Chinese work, what is called "slack". "Due diligence" is the same "due diligence" - one of the most important points that you have to control if you want to deal with the Chinese. Moreover, we can not wait for the development of the situation - need to discuss the issue.
5. Co-operation with the Chinese need to prepare

Most people who are planning joint projects with China, do not read books about the Chinese industry, and perhaps even that did not read any books about China. And for good reason. For very valuable to understand that what you are going to get involved. If you are traveling abroad, it is usually buying guide. If you're going to produce something overseas, do not you ought to know something about the country in which you want it to do this? And you need to read before you start. Especially because in the 21st century to do it - very simple.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 19 июн 2015, 15:05

Chinese factory or export company: what to choose?

Cooperate with the export company or product manufacturer in China? The question asked by many business people at the dawn of the creation of their own business related to China. And at first glance it may seem that direct work with manufacturers more profitable. The answer is not so obvious.

There are factories in China, which are loaded with "the eyeballs" and often expose new customers too high prices for their products. There are plants that are part of the delegate's own orders to other manufacturers (which, consequently, does not always guarantee the quality of the goods declared).

The task of the competent businessman - to find a professional provider in China. They can act and direct manufacturer and export company.

Let us examine in more detail in this issue. What factors should influence your choice of supplier of products?

Having your own website company

And not just a website. Major trading and manufacturing company in China care about their web resource has been made in several languages ​​for the convenience of customers. The site should contain detailed information about the product, it must indicate all the possible ways of contacting the supplier.

Product photos, videos

Acquainted with the product or plant exporting company can from photographs. Many advanced manufacturer declines for customers own factories, production lines. They need to demonstrate the level of technology and production scale. The higher image quality than their range is more detailed, the more assurance that you find really serious, successful provider.

Certificates for products

There are several ways to determine the quality of the products that you offer to the purchase. Independent certification of Chinese products, in this case - in fact, the ability to evaluate the reliability and quality of the goods. The most popular CE certificate is considered a document - it shows that the proposed products are environmentally friendly, adopted on sale in the EU is characterized by full compliance with safety requirements. In other words, if the production plant or export company aimed at the successful co-operation and promotion of the products, they will try to obtain such a certificate.

Do stocks of products in stock

The very fact of having products in stock suggests that the plant manufacturer or supplier focused on serious work. An important factor will be how quickly the company responds to your request, if there is enough loaded its warehouses, whether there is an adequate reason why a particular product is currently in stock is not enough.

Cost of goods

On any product in China, prices from different manufacturers and export companies may fluctuate in the range of 10%. This is due to a highly competitive price. We export companies commodity prices are usually slightly higher. At the same time, too low a price for the products may indicate that you are communicating with the scammers. And this must also be taken very carefully.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 26 июн 2015, 19:32

Useful advice to entrepreneurs engaged in wholesale purchases in China

Wholesale purchases of Chinese goods - it is an opportunity for active business development at the expense of serious turn and the purchase of products at competitive prices. But the obvious benefits of working with in bulk goods and supplemented by certain risks, including the most powerful - is the risk of losing large amounts of money. How to reduce the risks of wholesale purchases to a minimum and to establish favorable relations with China?

1. Think carefully about their trading strategy. The most profitable are the sales strategy of the Chinese counterparts popular products, new products and niche products with high price density. However, in the case of new products is high enough risk to make a mistake with an innovative and overemphasized interest of buyers. In some cases, it is advisable to first take small wholesale party to check the relevance of goods on the Russian market.

2. The wholesale party is best to buy directly from the manufacturer. If you do not plan too big wholesale (less factory party) refer to wholesale suppliers. For traders with second and third-level contact has meaning only when buying small wholesale, but do something with them it is better not have anything to do: cheat price will be too high.

3. Of course, you should take precautions to fend for themselves against fraud. Carefully examine the data of the Chinese partner. Do not put the payment through payment systems that do not allow to trace the money.

4. Go to the study of the goods, which are going to buy in bulk, with the utmost seriousness. Do not be amiss to visit production. Even better - if you control the whole process of making your consignment (in Chinese factories one product for different customers can produce with different levels of quality). If you can not do it yourself, contact a professional intermediary who will act as your representatives.

5. Be sure to present in person or send a representative to the reception of finished goods consignment. Affordable cost option - an appeal to the responsible services of the carrier, who will check the quality of the delivered goods and photograph it for the report.

6. Consider organizing wholesale store consignment stock in China. This problem can also take on the freight carrier.

7. The previous two paragraphs have brought you to think about the importance of the choice of the carrier, you can trust your cargo. It should be a respectable company with extensive experience and excellent reviews.

8. Analyze the cost and delivery time various types of transport. Select the best. Sometimes it makes sense to take advantage of combined freight. Be sure to find out where the goods will be delivered: a warehouse in Russia or the carrier directly to you. The second embodiment is obviously more convenient.

9. Take care of correct registration of customs documents. It is best to use the services of a customs representative who will act as a declarant of your cargo and ensure trouble-free customs clearance.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 30 июн 2015, 01:46

Ways to reduce the risks when buying Chinese products wholesale

For a successful business in China it is very important to correctly implement the selection of products. If you do not want to "run up" on goods of poor quality, want to learn to choose their suppliers, it is necessary to follow the proposed rules below.

So, what should be done be sure to:
1. Never agree to work with stakeholders to seek factory or producers.
2. Advance to find out about all possible contact information.
3. Make a list of questions for potential suppliers of goods, to clarify all your points are already at the first meeting or at the first telephone conversation.
4. Check whether there is a provider outside of China representative office, offices, intermediaries, with whom it will be possible to work in parallel.
5. Visit the company's website to find out as much as possible to meet with the review of the company's products, to find partners, to ask their opinion on cooperation.
6. Check all the possible ways of contacting the managers of the manufacturer, clear information on the process of supply, the courier services and more.

What actions can hurt you:
1. Pay for goods can only be two possible options: through the international payment system PayPal or bank transfer. For large orders it is imperative to consult with experts on the use of letters of credit. Other forms of sending money to use is strictly prohibited!
2. Do any orders in any volumes to how you see the real product samples. If the vendor refuses to provide you with samples, working with him is definitely not.
3. Make large orders initially. Pre-need to discuss with all the specifications of the product, enter into a written agreement on the terms of delivery, terms of delivery and payment orders.
4. To work with companies that specialize in the manufacture of pirated products or counterfeit branded goods. All the "gray" products are low quality in the market and creates a lot of problems during the implementation.
5. To work with manufacturers who are actively trying to impose too unfavorable to you the terms of cooperation, in a hurry to contracts, make demands, not fully meet your needs.
Do not let you fool! Careful and thoughtful attitude to work with suppliers allow you to save a lot of money.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 18 июл 2015, 13:47

What should be taken into account when imports from China

Only the big problems provide great opportunities, says a Chinese proverb. We do not know as there is in most of China, but the Chinese give Russian customers and then, and more. Then you and benefit from the perspectives and suddenly full container of marriage breakdown or delivery dates. To make sure your business is not stopped before it began, be prepared for a variety of misunderstandings and even trouble.

When working with the Chinese is best to adopt the English principle of "hope for the best and prepare for the worst." The worst thing is different. Here are some assumptions that allow you to retain customers and nerves.

1Horoshy English manager does not guarantee that the company - good. It happens that plants with a weak power does not stint on the competent salespeople. The task of the last - vtyuhat you the goods, and then how it goes. Just do not forget that behind the beautiful facade of the walls may be chipped.

2Postavschik who agreed to cooperate, do not necessarily understand what you need. The manager can, for example, to clarify some nuances. Because he is cunning or stupid, or something third. As a result, the Chinese poshyut jeans with buttons instead of a zipper, as you would like. On the negotiations and signing of documents to delve into all the details and get an answer to specific questions, or buy a pig in a poke.

3Kitaysky manager can casually acquainted with your order. Or not available at all. Or rely only on keywords. The bike won only two wheels and a steering wheel, so why the extra details?

Chinese manager can not look into your demands

In the Middle Kingdom made first to answer the questions of foreign buyers, and then we check with production

4 Chinese managers may not possess accurate information. On the equipment, which is available on the production of materials of which the product is made of the date on which the order can be ready. In the Middle Kingdom made first to answer the questions of foreign buyers, and then you check the production. And no voice heard, if it's at odds with the needs of the client, and the client has already tepid. By the way, in some cases, the manager can simply lie. Because he - see paragraph first.

5Pervy sample may not correspond to your order. And not because the Chinese do not know how to do well, but because they misunderstood, hurry, do not get feedback, etc. If you do not control the process, do not put them on the Cross at once. Change your behavior strategy, or with new suppliers history may repeat itself.

6Postavschiki can not inform you about the progress of the order. For example, do you think that you still have time to make changes to the drawing, and they have all been produced by non-approved templates. And refuse to remodel. Or require a fortune for it.


7 voiced value of the goods may be incomplete. A full - inconclusive. For example, you can name the price excluding the cost of materials, testing or packaging. Always ask clarifying questions and admit that you do not take into account, and the account will be a different number. It happens that you have considered all but the figure is still another. Just provider changed it for whatever their reasons. Sometimes it is cheaper to pay than to sue, especially if the difference is not so great, and you are ready for such a trick.

8 Your supplier representation on the calculation of delivery time may vary. There are also different variants: with the completion of the production, the arrival at the port of loading or to the ship. And the Chinese supplier can not take into account the last day of the acceptance of the cargo on the ship, and then the product a week, ten days or more will be collecting dust in warehouses.


9Postavschik can not ship the product until it has received payment of one hundred percent. Are you sure that the product is on the way, and the Chinese did not think to send them. Even if the contract stipulates that you make an advance payment, and full payment is made after delivery, do not rely on the conscience of suppliers and monitor the movement of goods.
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Re: How to start business with China

Сообщение HainanWel.com(e)! » 26 июл 2015, 14:17

How to recognize a Chinese factory with mismanagement


Literally every article on cooperation with the Chinese, we exhort: control the whole process personally. Plan to play vdolguyu and big - first of all go to the plant supplier. Require you to spend a detailed tour of the shops along the way and keep an eye on everything. Good equipment and quality products - are important indicators. But there is such a thing as business management, and with it the Chinese, too, have problems. We'll show you how to recognize them.
The problems with the management of the plant can turn into a problem for you

Let's start with the main danger - fraud. Director or manager of your plant can be fake.

Sometimes dishonest Chinese businessmen intermediary collude with the head of the factory and speak on his behalf. As a result, you lead the enterprise one "director", the next group of customers - is another. You think you are dealing directly with the manufacturer, but in fact it is the mediator who wind the price, and in case of what might slip away. Once you got to the Chinese factory, under any pretext spend there as much as possible. If the company was involved in a similar scheme, friendly people will see it. Ask the manager to show her office (if already sitting at the table the other person, it's a reason to doubt the personality of the director), asking employees about the head. By the way, even if you and potential partners speak English, grab a Chinese interpreter, so reliable.

Managerial arbitrariness

Suppose you are lucky, and all negotiators present. Satisfied with what he saw, you sign a paper back home in Novosibirsk, and further communication with the supplier closes on some manager. If the plant from which you ordered the goods, fails management system, various surprises. The manager may not have the information and answer you, they say, from the bulldozer. It can lie on the date of manufacturing or delivery. Or feed the breakfast. It may require you to roll back (yes, the Chinese there). And a dozen different "may".
Chinese managers may require a rollback

Problem areas

Decals "Problems with management" in any plant, unfortunately, no. But there are signs of stupid leadership. Looking at the light to the vendor, pay attention to the following.

1Direktor chasing teas

Chinese - hospitable people and always treat friends, guests and potential partners tea. But if the director spends the whole day in the office for a cup of tea and gossip, he hardly aware of what is going on in the factory. If you are seated in a chair and hold a conversation instead of a tour of the factory, it should be alerted. If you lead the enterprise any manager, and the director sits out at - the same.
This is what happens when the director - a formal position, and in fact, he does not solve anything, but simply looks solid and sign papers. Such hockey is not needed.
It happens that the director - a solid man, but does not solve anything

2 managers not in the subject

The man who leads you by the company you need to ask a variety of questions. From the "Where bought supplies?" To "How often lubricated with the gear?". If the manager raises his eyebrows in surprise, or something starts to babble instead of answer or indeed beckon informed person - he is probably not in the subject. I do not know how established work, does not know who is responsible for what. And most importantly - do not want to know. How, then, it will monitor the execution of the order according to your wishes?

By the way, another indicator - record keeping. During the tour manager, with whom you are speaking, and should make notes on recordings. No computer, he!


Ask managers to plant a variety of issues.

All three offices scattered throughout

With dedicated offices managers in China is thriving system of kickbacks - especially in procurement
In recent years, Chinese companies are trying to seat the employees in one big space. It is easier to establish communication between departments and supervise the work. If your plant for all private rooms, there is a risk that the management is bad there. Worst of all, when the walls are fenced off the heads of departments. Their task - to stand over employees, and they are sitting at their computers and scribbling letters. By the way, thanks to a separate office managers in China is thriving system of kickbacks - especially in the area of ​​procurement.

4Bardak workplace

On a normal company in shops must be clean. If piles of semi-products lying on the floor mixed with a ready, not the fact that you eventually marry will not send - disarray inextricably linked with errors. Hygiene, too, has not been canceled, as well as safety.

5Net visual inspection

Chinese factory producing a huge amount of product. How do they keep track of the production process? Perhaps the heads of departments and enjoy some service business process automation. But the simple hard workers who stamped stationery, of such hardly heard. The right choice for shop - board with the plan of work for the week. The reality reflects just such visual statistics. Otherwise, customers located thousands of kilometers away somewhere in Yekaterinburg will be poured on the unprecedented rate of production and the shortest delivery times.
HainanWel.com(e)!
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