The trade wiki provides you with perennial articles about the basics of doing business abroad. This essential sourcing guide covers all issues; from product specification to supplier research and customs, all important technical, legal, economical and political aspects are covered. Furthermore, we have a series of articles for the our most popular product categories. We cover many production locations throughout the articles, but China is in the center of attention due to its popularity as manufacturing location. We sometimes refer to it as China trade wiki. This is the best place for you to look up any trade related topic. Make sure that you also take a look at our manufacturing blog for more specific articles and at our industry reports for the product category that you’re interested in.
Most Chinese suppliers & manufacturers accept a broad range of payment methods. Options to transfer money to China for paying suppliers differ most importantly with respect to their risk, speed and cost. Since usually a deposit of about 30% has to be made before production, consider it before any business is conducted.
China’s Logistics Sector is the biggest in the world. After opening up the industry within the scope of joining the WTO, almost all logistics providers from Western countries are present. A number of Chinese logistics companies is successfully competing, often largely limited to the domestic China logistics market.
The Chinese Legal System is obviously different from Western countries since there is no separation of the legislative. Existing laws are not always and everywhere enforced which leads to idiosyncratic judgments. The law in China is divided into three separate categories: civil law, criminal law and administrative law.
The WTO serves as international authority with respect to trade conflicts. Agreements, WTO law and allegations about violations are negotiated here. It is in fact the only supranational instance that is in the position to judge countries for misbehavior. The WTO dispute China faces is based on this legislation.
Despite that China is slowly cutting back its restrictions on foreign investment, mandatory Joint Venture Agreements are still common. Whether it is necessary to form one with a domestic company depends on strategic decisions by the government. Joint Ventures China based can be lucrative but also imply risks.
International Trade Terms are mainly the Incoterms by the International Chamber of Commerce (ICC). They commonly determine sales practices in contracts and imply what seller and what buyer have to pay for with respect to the stages of delivery. These Commodity Terms of Trade help to agree on contracts with suppliers.
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