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China Factory or China Trading Company, Which One is Ideal

Many European and US importers wrongly believe that procuring products from a trading company equal to buying products from the middlemen. They prefer to directly deal with the China factory suppliers in order to make sure they secure the best price. To clear this conception ther are few things foreign importers need to clear out. In this blog, we are trying to supply you with valuable information that may help you a lot to streamline your China sourcing.

China Factory or China Trading Company, Which One is Ideal

What is a China Trading Company?

A China trading company doesn’t do any assembly at all. They receive your order and forward your deposit to a local partner factory. In many cases, that’s also everything they do, without offering any added value. Their big benefit is that they are able to offer a wide variety of products. In the past, before the opening up of China, trading companies were essentially the only way to import from China. It can be quite challenging to determine if your supplier is a China trading company or a manufacturer. Having a China trading company on the ground who knows the Chinese business culture provides a great advantage over going it alone.

China Factory or China Trading Company, which one is ideal?

Neither factories or trading companies are inherently bad or good. It entirely depends on how you are dealing with the particular company and the relationship you have managed to build. Expert China exporters advise to try both, a factory and a trading company and then realize by yourself which one looks good for doing business. Ther is no hard and fast rule that says buying from a China company is the only solution or depending on a trading company is the ultimate way for successful sourcing. Whether it is a factory or a trading company, if it is a reliable supplier, there may be a slight difference in the price of the product, but you will end up with a quality product. As an importer of the Chinese goods, the ball is in your court. You have to identify with whom you are comfortable in doing business.

The sheer number of enterprises in China is staggering and makes it really difficult for any foreign buyers to easily identify a factory and a trading house. Whatever your selection would be, you must know precisely who you are placing order with. Whether it is a factory or a trading house, a genuine company (or person) with experience in your product may prove highly invaluable for your business. They can develop a long-term China sourcing advantage required to succeed in your market.

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