Below are some of the warning signs which you should take very seriously when dealing with a new Chinese supplier for yourself. These can be implemented upon both manufacturers and traders.
- When they ask you to send payments by bank transfer/TT Only.
- When they insist for a 100% deposit before confirming an order with you.
- When they refuse to send you their business license copy.
- When they try to discourage you not visit their factory or office by coming up with all kinds of creative excuses.
- When they seem insecure and not confident upon your requests to have an inspection done of all goods during your initial negotiations with them.
- When they don't or can't provide you with valid certifications which you might need for a particular product or market.
- When they say that you don't need to see the samples before an order confirmation because time is limited, their production lines are already quite full and hence they don’t want to delay the delivery time for your order.
- When they change the price more than twice/thrice or are trying to confuse you with FOB, EXW, DDP, DDU price terms.
- When they start coming up with new magical costs for your product after receiving your deposit.
- When you have a hard time communicating with them due to a language barrier, slow response, or them not understanding their product and business very well.
Of course, many of these kinds of suppliers can still be potentially very good and safe to work with eventually. Some of them will have killer quality products, but the risks for you as a buyer will always be higher and the leverage will often be on the side of your supplier. Also, at the end of the day, the intent is what matters no matter who you are dealing with.
We are bringing here together years of experience in dealing with Chinese market.
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