Guest Column: Importing from China — Managing Risk

China is still a growing market that offers rich sourcing opportunities, as well as a degree of risk. But following a few fundamental steps can help minimize those risks.


Second in a series of articles from Global Sources. Also read the first article, "Importing from China — Getting Started."











Understanding the Market





Finding a Trustworthy Supplier









Factory Visits and Inspections





  • To meet the management and see if the company is competent.
  • To gauge the factory's level of technical sophistication.
  • To check if the factory complies with regulations and labor laws.
  • To see who else has placed orders with that factory.
  • To determine if the factory's production capacity is as claimed.
  • To see if the factory is subcontracting production to other factories.



Before the Goods Are Shipped











Compliance Issues







Landing Costs









Sidebar: List of Common Shipping Terms

Pro-forma invoice (PFI)

Purchase order (PO)

Commercial invoice (CI)

Free on board (FOB)

Letter of credit (LOC or L/C)

Minimum opening order (MOO)

Force majeure

About the Author Global Sources Online Directory sourcing fairs sourcing reports www.globalsources.com


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