Checklist for Due Diligence on Chinese Makers, Suppliers
China has been labelled as the Globe Factory for far more than a ten years. Whatever you can think of, it is most likely that you can discover it becoming produced in China. In addition, World wide web gives a best tool to identify a extended record of self-claimed Chinese manufacturers with decent internet sites in a second. Nevertheless, foreign businesses often uncover by themselves lost in a huge sea of alternatives, stop up with fault goods imported from China or work with a “suitcase” business – a Chinese term to explain fraudulent/fake corporations.
The important word is qualifying. Conduct due diligence on your Chinese production partners/suppliers ahead of you indicator the agreement.
Here are some factors you must include in your due diligence on Chinese producers / suppliers:
– Is the enterprise a real enterprise? Obtain duplicate of their business licence and, if feasible, check out with regional Commerce and Market Administration Bureau on the legitimacyof the Chinese enterprise.
– Is the business a producer? Wise Chinese middlemen recognize you would like to cut down expense and go immediately to makers. Therefore they might perform on a manufacturing site image, place it on their internet sites and claim they are manufacturing what you need. Yet again get the duplicate of their organization licence to verify their organization scope and/or look into with local federal government companies/industry bodies straight or through China organization advisor.
– Does the Chinese producer have surplus production ability and capabilities to meet your latest and possibly growing need? Check with the staff of the firm on their manufacturing capabilities. If you are placing large orders and/or glimpse at operating with a lengthy-phrase production companion, it is value going to the Chinese makers to far better evaluate their manufacturing capabilities.
– Does the Chinese producer have good quality management method in area? Do they have an international high quality accreditation? Receive a copy and examine with the authorization organization.
– Is the Chinese manufacturer a reliable company in the industry and protect clients’ intellectual property? Check out with business bodies, their consumers and suppliers and conduct secondary analysis to discover data on the company’s reputation.
– Is the Chinese manufacturer committed to perform with you? If your company is not crucial to them, you are at the really bottom of the checklist when they prioritize orders and therefore may delay the production or delivery for your order for the duration of peak time.
For a lot more data and ideas on carrying out enterprise with China, check out Sara Cheng’s weblog: http://ChinaSolutions.wordpress.com
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