Centuries ago, China was popularly known for its monarchies and prehistoric civilizations. Now, China has changed. China continues to become a ginormous economy, overpowering Japan and positioning next to United States. China is indeed growing more and more in the import export business. China is now known to be the largest producer of hundreds of products that are exported to other countries like mobile phones.
Aside from this, an over-populated China with 1.3 billions of people, have also turned into a major automotive market. If China’s developments in the import export business is predicted to continue on as the fastest growing economy and is growing 10% ever year. With this, China will likely overtake the United States as the world’s economic superpower.
So, here are the factors which contributed to China’s status for the past 30 years:
Undoubtedly, China’s goods can win over products from other countries. Mostly, people of hear false stories regarding the products imported from China. These products are believed to have quality problems. But producers have quickly dismissed these false stories and they claim that majority of their buyers are the ones ordering them the standards of the products they need to manufacture. Thus, China is not really at fault. There are those who resort to lessen the products’ qualities. But there are a lot of big companies too whose products are made in China utilizing all the best materials and adhering also to stringent manufacturing standards and quality control.
Before, the Chinese government has prevented foreign businesses from transacting or conducing business with Chinese suppliers. But when China linked with the World Trade Organization in 2001, it has continually enticed international businessmen to venture to a more liberated trade in the country. China’s connection with WTO has helped China draw in more international buyers. Through this linkage, China has totally embraced the international trade practices and laws which made the import products from China convenient and safe.
Because China is over-populated, it’s guaranteed that they have a lot of workers. China’s cost of living is also lower, so workers are not looking forward to grasping the same wages as the workers in US or Europe are having. China’s cheap labor greatly results to a reduction in its product manufacturing costs.
So, there you have it. But that’s not all there is to China because these benefits and opportunities are coupled with various risks.
Language differences can be a barrier. It’s often difficult to conduct business with companies not having an English-speaking employee or staff. But recently, large manufacturers have already employed multilingual sales staff to help foreign businessmen. Aside from language differences, various Chinese business etiquettes have a greater impact on business transactions. China may have gone through trade liberalization. But China’s traditions and culture plays a big role in the business. Thus, these should be given consideration especially when dealing with the Chinese.
Importers should not only rely on one or two suppliers. Different circumstances happen along the way. Most of the time, suppliers succeed but there really are times, when they do fail. So, it’s best to flex a little and look into several other sources of your products. As you start off with this business, it would be best to link with private companies who are already knowledgeable with China’s trading practices and distribution channels. It’s also imperative to realize and value the Chinese businessmen and the culture they’ve grown of. To help you understand them better, you can find a lot of information in the Internet. You can even find import export coaches, import export training courses and e-books that continue to keep businessmen aware of China’s policies and practices. It’s also best to hire the services of import export agents and experts who totally know the ins and outs of the China import and export business.