Product Sourcing from China: How International Merchants Make it Work in China

A characteristic of the Chinese economy has been a strategic method to exporting manufactured products to the world market. China has an extensive and inexpensive workforce. Products are made in large quantities and then exported at a practical price. This is the reason why millions of goods are being exported from China to almost every country in the world. The country has rapidly become the world’s second largest economy, so naturally foreign markets see promise for trading.

How to Source your product from China?

Best ways to do it:

1) Hire a trustable and local Chinese agent.

2) Set up a representative office (RO) in China upon gaining government approval.

3) Open a company office or branch (subject to licensing and other conditions to be named by China).

4) Obtain a Chinese partner to create a joint enterprise.


Businesses and organizations want to partner with Chinese businesses because of the diverse market and steadily growing economy. When considering trading overseas be mindful of the following, as they are particularly relevant to succeeding:

1)      You, the buyer, are responsible for familiarizing yourself with the country’s current laws and regulations as well as product liability problems pertaining to any raw materials you are prepared to acquire.

2)     You are responsible for understanding the raw materials necessary for production and product reviewing. Fundamental to this is:

a.    Conducting feasibility research before looking for feasible goods. Make it a habit to buy top quality products. Because there are countless brands in China, a little research on any goods you want to buy goes a long way.

b.   Seek out a reliable supplier. Consider a supplier’s track record, product quality, pricing and more before choosing the best option for your needs. Allot the necessary time to look into well known suppliers like Alibaba, eBay and Amazon.

c.    Sell goods and build your brand.  Once you have chosen the best products and have retained a supplier successfully, you will notice your business picking up speed. Marketing your high-quality product at a competitive price and maintaining a good relationship with your supplier will encourage customer loyalty and repeat business.


In order for international trade to succeed, investors who have already mastered the Chinese market suggest the following to create a winning buying strategy:

·       Conduct adequate market research. This means being aware of the competition’s products and brands, their growth rate and market shares and trends.

·       Find prospective elements to the supply chain and final buyer.

·       Properly promote your product before it is launched.

·       Have your infrastructure in place for when you begin to make sales.

Sourcing products overseas is pretty much an expected practice for any profitable business nowadays. Many western companies are partial to and grossly benefitting from manufacturing products in China. Companies can also have China inspect it, pack it and ship it if need be. Be advised that skillful navigation of Chinese business and import/export laws will be crucial to succeeding.