China Business

Why Your Chances Of Not Getting Your First China Factory Order Are So High.

China WFOE employees

Just about every week, one of my law firm’s international dispute resolution attorneys gets contacted by a company that ordered product from China and never got anything or got something multiple levels of magnitude less than what they ordered. Much of the time, this is a first order from China.

The company usually asks us what they can do to recover and most of the time (because the amount at stake is too little to hire an American law firm), I tell them to keep trying to recover and to retain a Chinese law firm to assist.

I also tell them not to order from China again without knowing exactly from whom they are ordering and without having someone on their side monitoring product quality. I also suggest they have a contract on their next go round to increase the likelihood of their getting good quality and decrease the degree of difficulty in their recovering if they do not.

David Dayton over at the Silk Road International Blog, who knows as much about the nitty gritty of Chinese factories as anyone, just did a post setting out possible reasons why companies so often get bad product on their first go round with Chinese companies. This post is an absolute must read for any first timers thinking about buying product from China. It also will likely confirm a few things for veteran China buyers as well. Entitled, Ancient Chinese Secret: Don’t Lie (to foreigners), it’s just not worth it, I urge you to check it out.

One response to “Why Your Chances Of Not Getting Your First China Factory Order Are So High.”

  1. David Dayton’s post and the advice of that wizened Chinese trader is better addressed to mainland Chinese than those foreigners whose greatest single mistake seems to be suspension of disbelief (abandonment of common sense and commercial experience) on entering the Middle Kingdom (sounds like a fairy-tale place, eh?). Oh yes, and the mistake of clinging to that old saw, “well, people are just the same everywhere”.

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