Introduction 

Do you  want a successful importing business in China? Then, you definitely need a sourcing agent.  We have put forward 5 Plans with Prices to support your different needs.  We also give you some suggestions on How to Choose a Sourcing Agent in China.  Besides, there is a detailed introduction about our sourcing ability which will tell you Why Choose Us.

This post also offer you some guides and notes about sourcing in China:

1. How to Protect Your Intellectual Property?

2. Why must a sourcing company have a subcompany in Hong Kong ?

Price

Free

– General sourcing by EMAIL

– Urgent Asistance

  • translation for calling for emergency help
  • translation for calling the police in dangerous conditions
  • translation in hospital.

– Samples collection and send together

Basic

( Especially suitable for e-commerce and sellers of each platform )

– Including everything in the free plan.

– Find a supplier (on the Internet or in our company’s supplier inventory list)

– Photography of small products

– Free storage for one month

– Arrange shipping (transportation cost calculated separately)

– Replacement packaging or customized packaging

– Expense: 20% below 1000 / 15%1000-3000

12% above 3000 / USD200 paid in advance

Pro-L1

( Suitable for B2B )

– Including everything in Basic

– Supplier verification ( company certification, company risk alert )

– On-site inspection in supplier’s factory

– Communication with suppliers

– Shipment of goods

Pro-L2

( Suitable for B2B )

– Including everything in Pro L1

– Supplier verification (human resource, management interview)

– Suppliers map

– Relationship management of suppliers

– Development of suppliers in Southeast Asia

Pro-L3

( Engineering customization )

– Including all in Pro L2

– Manage suppliers’ business trip for the equipment adjustment

– Training workers

– Long-term after-sales service and maintenance

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Why Choose Us 

1. Team work

A team with distinct levels and responsibilities strictly guarantees that the time allocated to the client is sufficient.

2. Background benefits of injection molding machine manufacture

2.1 We are very familiar with plastics, injection molding processes and mold making. So we are good at controlling the product quality and offering production instuctions to manufacturers. The plastic parts of many products are produced by injection. We can give the factory strong guidance on production. When you are an expert for the factory, they will deal with you sincerely.
2.2 Support from a professional team of engineers. The engineering team of injection molding machines are: mechanical engineers, hydraulic engineers, electrical engineers.
2.3 Background knowledge of machinery (cast iron, steel, machining), hydraulic pressure, weak current (PLC 5v voltage, electromagnetic valve 24V voltage), strong electricity (220V and 380V voltage), this is the knowledge required for the injection machine.
2.4 Rich overseas turn-key project experience, overseas employee training, after-sales maintenance
2.5 Management of supplier and supplier relationship.

The injection molding machine has more than 800 parts, all of which are made by different suppliers. The machine can not be installed even with only one part missed. It requires a strong control of time and coordination.

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3. Background benefits of professional export company

  • We have been familiar with China’s export policies and processes since we started our exporting business in 2020.
  • We have extensive connections with suppliers and freight forwarders.

4. Security

– Perfect management for the suppliers’ contracts ensures the safety of funds

– Signing of DNF contract ensures the safety of customer information

5. We are ready

Foshan company, Dongguan company, Shenzhen headquarters, Hong Kong company and Cambodia company.

6. The next step

– Develop the SOURCING business in Cambodia, Vietnam and Thailand based on the Cambodian market.

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How to Choose A Sourcing Agent in China 

1. Team work instead of one single person

Team work is your only choice. The person you collaborate with must be an excellent one. If not, it will just waste your time and money.

But no matter how professional or friendly he is, his time is limited. In addition, such an excellent talent is also wanted by many other customers, which means he can’t totally focus on the cooperation with you.

2. Only one account

An account, you send money to the only account, which is the designated account of your SOURCING COMPANY, and then the money will remit to your different suppliers. If your sourcing agent is unable to deal with it, then they are so incompetent.

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Imagine that if each different supplier requires you to send money separately, this will be painful and risky. The basic requirement of these accounts for accepting foreign exchange is that the account is in good condition. However, not every Chinese supplier has the ability to handle the foreign exchange issues. Those who are capable are relatively large suppliers. But will such suppliers match up with you?

In recent years, China has strengthened its control over foreign exchange, which involves accounting issues, tax issues, and China’s foreign exchange money laundering issues.

In particular, the issue of hacker attacks needs to be noted. If your provider does not have the awareness of email security, this will generate a high risk, while you are completely the bearer of the risk.

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3. More than one account

What you need is a company entity. Because sourcing in China requires signing contracts with suppliers. Physical companies are the best choice. When there is a problem, the Chinese law will provide protection.

Both parties of the contract are Chinese companies, so problems can be solved properly according to the Chinese laws.

If you sign a contract as a foreign company with a Chinese company, it will be more difficult to solve the problems. Many professional foreign companies generally have branches in Hong Kong. If necessary, you can also sign a cooperation agreement with their Hong Kong branch. After all, the laws of Hong Kong are compatible with most countries.

Physical companies can provide a lot of practical help, such as sending and receiving express delivery, supplier visits, customer hospitality, etc.

4. Transportation fee

Choose asourcing agent who is close to your supplier to reduce travel expenses, because all expenses will be recorded on your bill.

The sending and receiving of small items is just a small case. The cost of express delivery in general cities is quite similar.

5. A specialized purchasing department

Purchasing needs to be supervised to stop salesperson from receiving kickbacks secretly and privately.

Purchasing can balance the ups and downs of the cycle, placing orders during the off-season of the factory and consuming inventory during the peak season. Optimize the procurement plan.

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To Know More 

FREE SERVICE

General Sourcing by EMAIL : The team leader who has 10 years of experience will put forward the related opinions and suggestions including the things we can do for you according to your specific conditions. If we don’t have the ability to benefit your business, then our business will not be for long.

Urgent Asistance : When encountering some troubles in an unfamiliar environment, for a foreigner not understanding the native language, what he needs most is a temporary translator. We have helped many customers. We believe any Chinese who knows English is willing to provide such help. But our team takes such an assistance as our necessary duty. Other business will be kept track of by the company.

Samples collection and send together : Receivemodel, inspect the surface of model, and collect all kinds of sample models before shipment. If you choose different models from different suppliers and send them to their own separately, the cost will be high. Besides, not all suppliers have an international express account.

Sometimes, suppliers are not sure that whether their usual ways of packing fit for the international express delivery. At this time, we can help. Customers can send a few samples to our office. After receiving the samples, we will give them a simple inspection and test, send pictures or videos to the customer. If the original packaging is not suitable for international express delivery, we will change them with a suitable one. If there are multiple samples, we will collect them and send them to you together. Of course, you need to pay for the courier fee.

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BASIC SERVICE

 Find suppliers : We will find suppliers on Alibaba, Taobao or 1688 for our customers. Then we will send you a file including the information collected and our advice, so that you can choose an appropriate supplier.

Photography of small products : We don’t have a very large photostudio, but we have dedicated photography equipment. So the photography of the small model is not a problem. If it’s a big item like mattress, then we can’t handle it.

Free storage for one month : We can offer you some place for your products in our warehouse and we will be very careful to classify and store them with charge of storage fee.

Arrange shipping : We will arrange the delivery of the goods according to your instructions. As for the delivery ways, express delivery or sea transportation, we will decide based on the specific situation. There is also a solution with one part of the products sent by express delivery to keep you meet the demand of market as soon as possible while the rest sent by sea to reduce the courier fee.

Replace or customize the packaging : Do you know most express delivery in China? To be honest, it is really not suitable for international express delivery. However, we can customize your exclusive packaging according to your requirements to make sure the customers can be content with the products.

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PRO-L1  SERVICE

Supplier verification : Our colleagues of the purchasing department will do a basic research about the authenticity of the company and check whether the company’s finance is at risk.

On-site inspection of the supplier’s factory : We will send people to the factory for field investigation and give you the corresponding pictures and videos so that we can promptly notice some problems and communicate with the factory to solve the problems.

Communicate with suppliers : Communicate with the supplier about the problems of goods, production, delivery, etc., so that customers can understand the production situations at any time.

Shipment of the goods : Shipment will be arranged by colleagues in the after-sales department after the goods are ready.

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PRO-L2 SERVICE

Supplier verification : It is the communication that makes the information truly get exchanged. We know deeply that the information scraping is a capability. And we have accumulated much experience in this field.

Supplier map : We can provide you with maps of current suppliers and potential suppliers, which will give you a chance to know about your supply system more intuitively.

Relationship management of suppliers : To establish the most appropriate supplier system for you, we keep optimizing the quality of suppliers. The problems should be preconceived and the solutions must be planned to avoid the passive situation.

Competitor monitoring : We will monitor the customs data of your competitors.

Development of Southeast Asian suppliers : We have branches in Cambodia that can radiate Southeast Asia, especially Vietnam and Thailand. Factories transferred from China continuously accepted in Southeast Asia. We need to prepare for the next five years.

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PRO-L3  SERVICE

Technological help : Accompany suppliers to adjust and test equipment in the overseas factory and train workers.

It is necessary for the suppliers to send professional stuff to the site to guide the some engineering work and the use of production facilities, so you don’t have to worry about it. We will make adequate arrangements including an accompanying interpreter. We are familiar with this job and have much experience in TURN-KEY projects in many countries.

Long-term after-sales and maintenance : Part of our work is the sales of injection molding machines. The life of injection molding machines is 5-10 years. If they are well maintained, they can be used for 15 years, which means we need to offer more than 10 years of after-sales service to our customers .

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How to protect your intellectual property?

I have listed some common opinions and suggestions below, most of which do not have the specific implementation methods, and some are even time-wasting. Let’s check if you have fallen into these traps:

  1. Investigate the manufacturersin advance and cooperate with a reputable one.

✘  Lack of specific operation approaches

  1. Register intellectual property rights

✘  Time-consuming and expensive, and probably doesn’t work.

  1. Set up a Product Manufacturing Agreement and Non-Disclosure Agreements with manufacturer.Be clear of Chinese laws.

✘  Unless you were a big-brand company with enough resources to get entangled with the other party. Otherwise, this kind of agreement is actually a piece of waste paper, which is useless even though you have signed it.

  1. Haveatrusted person to supervise the manufacturing process of the factory, or go to the factory in person.

✘  Lack of specific operation methods

  1. Segment the manufacturing, separating the production of key technologies. Give no chance for any facility to gain too much information.

✘  The action of large companies

  1. Pay close attention to market dynamics and prevent copycat products.

✘  Lack of operation guidelines.

My recommendations are as follows:

1. The law must be the last guarantee.

First of all, you need to be clear that the agreements you sign with any company or supplier in China are transnational agreements. The cost of dealing with such an agreement is enormous, and it is basically unfavorable to non-Chinese.

So you sign a cooperation agreement with your sourcing company’s subcompany in HongKong. You need to sign with one Hongkong company which have legal relationship with your sourcing company in China mainland with the term of legal arbitration place in Hong Kong. ( Why a sourcing company must have a sub company in Hongkong ? )

The legal system of Hong Kong is the same as that of most countries in the world. You can judge and deal with the matter according to your common knowledge in law. There is no need to hire a lawyer or become one yourself.

Then the sourcing company in China will sign a cooperation agreement with its suppliers and meanwhile transfer the responsibility to the Chinese suppliers. Once you found some problems, you can ask your sourcing company to sue the domestic suppliers with the valid agreement you have signed in Hong Kong. At this point, it becomes a domestic lawsuit in China, which is a serious issue. And you can even apply to the court to freeze the bank account of the other party.

Or you can require your sourcing company to sound a warning or send a lawyer’s letter to the supplier. Then, the supplier will be very careful and fatidious to deal with this kind of case.

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Of course, if it comes to the legal settlement, which is already a very serious consequence, and there is no way for both parties to continue their cooperating business again. Then we still need to proactively take measures to prevent such trouble from occuring strategically, because this means the supply chain is broken. If you don’t have a good substitute for the business, then you will be in a dilemma.

2. Investigate the suitable manufacturers and choose a reputable one as your partner. 

First of all, research the background of companies and share composition.

Second, inquire into the background of shareholders. Check whether there are bad records, whether there is a risk of legal litigation, and whether there is a risk of capital chain rupture.

We have a series of investigation plans, you can inquire us. More in-depth interviews with management, etc.

What is the way to talk about it?

That is definitely not a one-on-one face-to-face recording on the spot. In this situation, the supplier will only give a vague answer discreetly. When you walk in the workshop with them and when you have a meal, you can ask them some questions after they relax their vigilance. These questions must contain a pile of key questions. In terms of the intellectual property issues, for example, you can’t ask them if they will sell your design to others straightforward. They must say no.

As for how to ask such kind of questions, please carefully read the following section:

18 Questions to Suppliers-How to carry out the Q & A with Chinese suppliers?

For the protection of intellectual property rights, there are two methods:

  1. The first is the open question:

Ask them what newly developed products their customers have this period. Then you say it’s old and outdated no matter what they show you and see what they say and do.

If they reject with a reason that they have signed a Non-Disclosure agreement, then you can say you are from another country, which has no impact on the original customers to see what they will do.

    2. You have obtained the information (how to obtain real and effective information? Please see this paragraph)

You know that product A will be imported into your country, while this kind of product is protected by patent. Then you can find the pattern of product A from the Internet and send it to the supplier, and ask if he can provide you with the same product.

In fact, you can set a lot of scenarios and assumptions to predict the behavior of suppliers and watch their reactions. You can continue to test the managers, sales staff, ordinary workers, company executives, and then draw a comprehensive assessment.

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Take advantage of opportunities to meet suppliers on site. But all in all, you need to find an excellent and experienced translator, who can accurately convey your words to the other party and vise versa. Otherwise, the information you get is not true, which also cannot achieve your purpose.

This kind of testing needs to be carried out continuously, and problems should be handled in time.

  Monitor

Monitor the customs dataandthe goods exported by the supplier, find out your competitors. Then check if there are similar products that violate your intellectual property rights. This can be achieved by visiting suppliers from time to time.

  ❀ Logo or company name on the mold

If there is a mold parton your products, you can printyour logo or company name on the mold, which has a little trick inside. But this is a technical issue, and we’re not going to talk about it here. If you develop the mold yourself, it is easier to monitor. You can get the data from the injection molding machine and you will know. But how many sourcing companies knowing injection molding machines well can you find besides us?

   ❀ Quality control and assembly 

If your product has several molds, you can considerproducing them at different factories. But this will bring another problems: quality control and how to assemble. That’s when big buyers are needed to slove the problems.

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Why must a sourcing company have a subcompany in Hong Kong ?

Hong Kong is an international and diverse city, with easy access for people and goods.

1. Finance and economy

  • The third largest financial center in the world.
  • Having a highly developed free market economy, which is characterized by low taxation, almost free port trade and a sound international financial market.
  • Having the highest degree of economic freedom in the world. ( according to the “Economic Freedom Index” )
  • Economy ruled by active non-interventionism and highly dependent on international trade and finance.

Coupled with the use of modern English/Western business methods and technologies, it ensures that foreign trade, investment and recruitment opportunities are properly increased. Prices and wages in Hong Kong are relatively flexible. And they are dependent on the performance and stability of the Hong Kong economy.

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2. Legal System

  • Under the situation of one country and two systems, Hong Kong mostly preserved its own legal system developed under British rule. And it is distinct from Mainland China.
  • A common law: based on a combination of English common law and local legislation codified in the Laws of Hong Kong.

From the perspective of sourcing companies, they need a Hong Kong company, especially a Hong Kong account to regulate the foreign currency they receive because:

       (1) Foreign currency and exchange is strictly controlled in China. There are two types of accounts when it’s investment related, registered capital account and current trade account.

      ① Current account items :

 Transactional items

Payments and receipts related to commodity transactions, service provision and other ordinary fund transfers that occur in the daily business process.

       ② Capital account items:

  Items that increase or decrease an entity’s debt or equity through capital inflows or outflows include direct investment, various forms of loans, and securities investments.

For any foreign currency and their transactions, company need to report to the bank in time to announce the nature of the business transaction. They may need to use the standard codes defined by the State Administration of Foreign Exchange (SAFE) for such reports.

When you use foreign currency and convert it to RMB to pay the local expenses like salary, local supplier’s payment. You must basically submit supporting documents to show that the conversion is for business operations.

Another thing needs to be noted is withholding tax, especially when you pay the overseas provider for he services. You must go to the bank and pay the withholding tax on behalf of the foreign seller.

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Now under the rules of CRS, opening a Hong Kong company and operating a Hong Kong account, this requires a special person to deal with. This is a reflection of the strength of your sourcing company.