Your China project, handled on the ground.

Most failed import projects fail on the numbers, not on the product. Work through these questions first:

1. Demand: Who will buy this in the U.S., and at what price? Look at competitors' prices, reviews and complaints.
2. Landed cost: Add up the factory price, packaging, inspection, freight, insurance, import duties, customs brokerage, and delivery to your warehouse. Then add returns, marketing, platform fees and your own time.
3. Margin: A common rule of thumb for physical products is that landed cost should be well under half of the retail price, and often closer to a quarter to a third once marketing and fees are included. Run your own numbers.
4. Minimum order quantity (MOQ): Can you afford the MOQ, and the storage, if sales are slower than expected?
5. Regulation: Does the product need testing or certification (see Chapter 7)? Is it restricted or heavily regulated?
6. Intellectual property: Is your design protected? Are you infringing someone else's? (See Chapter 5.)
7. Timeline and cash flow: Money is tied up for months before the first sale. Can you carry that?

Typical timeline (varies by product, season and route)

• B2B platforms (Alibaba.com, Global Sources, Made-in-China.com): easy to start, but listings include many trading companies and some unreliable sellers. Treat them as a starting list, not a recommendation.
• 1688.com: China's domestic wholesale platform. Prices are often lower, but it is in Chinese and generally needs a local buyer or agent.
• Trade fairs: The Canton Fair (Guangzhou, held in spring and autumn), plus industry-specific shows in Shenzhen, Shanghai, Yiwu and other cities, let you meet many suppliers in a few days.
• Industrial clusters: Many products are made in specialized regions. For example, electronics in Shenzhen, small commodities in Yiwu, furniture and general manufacturing across Guangdong, and textiles in Zhejiang and Jiangsu. Going to the cluster shortens the search.
• Referrals and sourcing agents: Often the fastest route to a reliable factory, if the agent is transparent about how they are paid.

Factory or trading company?

Factories offer lower prices and direct control, but have higher MOQs. Trading companies offer lower MOQs and mixed-product sourcing, but add a margin. Neither is bad, but you should know which one you are dealing with.

Basic checks you can do from home

• Ask for the business license and its 18-character Unified Social Credit Code. Check it in China's official National Enterprise Credit Information Publicity System, and confirm the company name, status, registered capital and business scope match what they told you.
• Confirm that the bank account is in the company's name.
• Request a live video tour of the factory, not just photos.
• Ask for references or past export customers in your market.
• Compare quotes from several suppliers to understand the real price range.

Red flags

• Prices far below every other quote.
• Refusal of a live video call or a visit.
• Requests to pay a personal account, or via Western Union or gift cards.
• Mismatched names between the company, the invoice and the bank account.
• Pressure to pay quickly "before the price goes up".

Go further with an on-site audit

For orders of any size, an in-person visit or third-party audit checks machinery, capacity, QC process, working conditions and whether the factory really makes what it claims.

• Write a clear specification (drawings, materials, dimensions, colors, packaging, labeling, tolerances). Vague specs lead to disputes later.
• Sample in stages: an initial sample, a corrected sample, then a signed-off "golden sample" that both sides keep as the reference. Insist on a pre-production sample for larger orders.
• Ask for an itemized quote (unit price, tooling, packaging, sample fees, lead time, Incoterm, payment terms) so you can compare suppliers fairly.
• MOQ is often negotiable, especially for a first trial order or if you accept standard materials and colors. Expect a higher unit price for a lower quantity.
• Agree on tolerances and remedies in writing: what happens when a batch fails inspection?

Working with Chinese suppliers

• WeChat is the main business channel. Messages are quick and informal, but important decisions should be confirmed in writing by email.
• Relationships matter. Patience, respect and consistency pay off, and a visit builds trust faster than months of messages.
• Plan around holidays. Chinese New Year (between late January and mid-February) can shut factories for several weeks, and the early-October Golden Week slows production and shipping. Place orders well in advance.

Payments

• Bank wire (T/T) is the most common method. A deposit before production and a balance before shipment (for example 30/70) is typical, but terms are negotiable.
• Platform protection (such as Alibaba Trade Assurance) can reduce risk on supported orders. Read the terms.
• Letters of credit offer more protection on large orders, but add bank fees and paperwork.
• Pay only to an account in the company's name. Never pay by gift card or personal transfer.
• Hold back the balance until the pre-shipment inspection has passed.

Contracts

Use a written purchase agreement that covers specifications, price, quantity, delivery date, quality standards, inspection rights, payment terms, penalties for delay or defects, and dispute resolution. A bilingual contract (English and Chinese) with Chinese law and a Chinese court or arbitration clause is often easier to enforce in practice than a purely U.S.-law contract.

Intellectual property

• China uses a first-to-file trademark system. If you plan to sell a branded product, consider registering your trademark in China before sharing it with suppliers.
• Use an NNN agreement (non-disclosure, non-use, non-circumvention) written under Chinese law, and ideally in Chinese.
• Share only what each supplier needs, and keep molds and tooling ownership clear in writing.

Pre-shipment inspections commonly use AQL (Acceptable Quality Limit) sampling tables. Many buyers of consumer goods use General Inspection Level II with limits such as 2.5 for major defects and 4.0 for minor defects, with zero tolerance for critical (safety) defects. Define your own limits in the contract.

Where relevant, add laboratory testing for safety and compliance (for example chemical, flammability or electrical tests).

Incoterms: who pays for what

Sea, air or express?

• FCL (full container): best for larger volumes. LCL (shared container): good for smaller volumes, at a higher cost per cubic meter and with more handling.
• Air freight: faster and costlier, best for urgent, light or high-value goods.
• Express courier: best for samples and small orders.

Importing into the U.S.

• You (or your broker) act as the importer of record. A customs bond is usually required.
• Correctly classify the product under the HTS code. It determines your duty rate.
• Duties on goods from China have changed several times in recent years and can include additional tariffs on top of the base rate. Always confirm the current rates with a licensed customs broker before you place an order.
• For ocean shipments, an ISF (Importer Security Filing) must be filed before the cargo is loaded.
• Check product-specific rules: CPSC for consumer and children's products, FDA for food, cosmetics and medical items, FCC for electronics, and labeling and country-of-origin marking requirements. Make sure your supply chain complies with the Uyghur Forced Labor Prevention Act (UFLPA).

Exporting from China to other countries

If you sell outside the U.S., the same approach applies, with different import rules. Each destination has its own duties, VAT or GST, labeling and certification requirements (for example CE marking in the European Union). Tell us the destination early, and we will check the requirements before production.

• Visa: Entry rules for U.S. citizens change from time to time. Check the current requirements with the Chinese Embassy or consulate, or the official visa application center, well before you book flights. Business (M) visas typically need an invitation from a Chinese company, and tourist (L) visas need an itinerary and hotel details.
• Passport: Make sure it is valid for at least six months beyond your trip and has blank pages.
• Travel advisories: Review the U.S. State Department's current advice for China before you go, and consider registering with the Smart Traveler Enrollment Program (STEP).
• Payments: Mobile payment (Alipay and WeChat Pay) is used almost everywhere in Chinese cities. Both can now be linked to many foreign cards. Set them up before you travel, and carry some cash and a card as backup.
• Connectivity: Many Western apps and sites (including Google services, WhatsApp and Instagram) are restricted in mainland China. Set up your connectivity solution before you arrive, and install WeChat, a maps app that works in China, and a translation app.
• Getting around: High-speed rail between major cities is fast and convenient, and ride-hailing apps work well in cities. A driver or accompanying interpreter saves time on factory days.
• Combine business and leisure: Many clients add days for sightseeing before or after meetings and trade fairs, in cities such as Beijing, Shanghai, Xi'an, Chengdu, Guilin or Hangzhou.

1. Choosing a supplier on price alone.
2. Skipping samples, or approving a sample that does not match the mass-production version.
3. Working from vague specifications and verbal agreements.
4. Paying 100% upfront, or paying to a personal account.
5. Skipping inspection before the balance payment.
6. Ignoring compliance and certification until the goods are at the port.
7. Forgetting duties, brokerage and inland freight when calculating margin.
8. Sharing designs without NNN protection or a trademark filing.
9. Not planning around Chinese New Year and Golden Week.
10. Going it alone with no one on the ground who speaks the language.