China Trading

Many people would think that trading raw materials is mutually beneficial between countries. The US economy depends on profiting globally, and we understand the benefit of using cheap labor in foreign countries through FDI. However, what happens when a state financed enterprise in China strategically buys up raw materials like iron and petroleum. I am not just talking about an even percentage, I mean “greater than 90% of the world’s raw supply of iron” and complete control over the U.S. petroleum supply.1 Fortunately, the US government noticed what they were up to and made it illegal for another county to purchase a controlling interest in the U.S. petroleum supply. On a side note, it was only five years ago that the North Korean government financed a massive plant to produce billions in counterfeit U.S. currency. Everyone knows that the U.S. military forces are superior to any other country, but there is one thing that we do not have. China has a “population of 87 million exceeds most European nations”.2 Many of these people are living in less fortunate conditions. You might even assume that they would prefer a better life, and the right leader could influence them to do so at the expense of other nations.
We are vastly out numbered, so what makes our military forces superior?

The answer is technology, industry, petroleum, and iron. Technology is always either for sale, or it can be gathered through espionage. China can buy the same level of technology from intermediaries or allied governments. Industry can be built with economic growth. Currently China is the number one growing economy in the world. It nearly controlled our petroleum supply domestically and failed, so China decided to buy petroleum from Saudi Arabia through German intermediaries. Now our gas prices are going through the roof and stock analysts are saying its some kind of market fluke created by a belief that oil prices will continue to soar.

Iron, the main export that I would like to discuss, is five times its original price four years ago when China started buying up the world’s supply of raw iron. Right now, they are using this iron to create cranes and other machinery to export to the US and other nations, but most of the iron is being stockpiled in China for future use. What future use? We can only speculate. Why would China stockpile their ever-increasing supply of iron and still buy more, regardless of the price (literally)? What big plans do they have for such an immense stockpile of iron? Aren’t bullets, guns, factories, and tanks made out of iron? Absolutely, here is a piece of an article on the Chinese economy.

“In recent years China’s booming economy, fueled by large inflows of foreign direct investment (FDI) and rapid export growth, has emerged as a significant force in the global economy. This year, China surpassed the United States as the world’s largest recipient of FDI, and its bilateral trade surplus with the United States reached $117 billion in the 12 months up through August 2003. Both inward investment and export growth create strong demand for China’s currency, the Yuan. All things being equal, such demand pressures should cause the Yuan to appreciate relative to the U.S. dollar and cause China’s external position to return to balance.”3

Since China is the number one growing economy on the planet, they also have the number one growing currency relative to the US and other nations. Everyday China is become more industrialized. They used to be a purely state controlled economy, but they are starting to develop into more of a free economy in some areas. Overall, they are not shutting down as many businesses that do not pay the government officials regular bribes, which is definitely a move in the right direction.

The US wants to encourage free trade with China because of their enormous population. This means that US companies would have access to a huge new market of consumers. It also means improving the quality of life in China. It is also widely known that many native Chinese women perform acts of prostitution or marry solely to support their family. It is also common in China to see people walking barefoot because they cannot afford sandals, or seeing people including children who are starving. China also has more than 300 organized crime syndicates with a history that goes back to the Shaolin Monks. China is a desperate nation, so desperate that they engage in foreign currency scams to inflate the value of the Renminbi (pronounced Yuan). In 2000, the exchange rate was 8.3 Yuan per U.S. dollar. Today, the exchange rate is 7.6 Yuan per US dollar. Here is the second piece of the article above.

“But all things are not equal: China pegs the Yuan to the dollar at a fixed rate and strictly regulates imports and the allocation of foreign exchange. In order to maintain the Yuan’s fixed value, China must create a residual supply of Yuan to counter growing demand for its currency; China achieves this by buying dollars in foreign exchange markets. Between December 2000 and July 2003, China more than doubled its foreign reserve holdings from $168 billion (16% of its GDP) to $361 billion (31% of its GDP).”4

“How should the United States respond? On nine occasions between 1988 and 1992, the U.S. Treasury found that similar external surpluses accompanied by much smaller accumulation of foreign reserves constituted evidence that countries—including China—were manipulating their currency’s value for competitive trade advantage. When such a finding is made, U.S. law requires the Treasury Secretary to undertake negotiations to end such manipulation. Current evidence indicates that China is engaged in just such a manipulation of the Yuan for competitive gain.”5

Today, foreign “investment, combined with China’s swelling export earnings, have pushed the country’s foreign exchange reserves beyond $600 billion”.6

One thing that I learned from experience is that desperate people and people that try to steal from others generally cannot be trusted. This is why, among all the other evidence I provided above, I do not think we should let the Chinese government do whatever they want. They should not have a majority of the world’s iron, petroleum or our country’s economic and physical security in the palm of their hands. What good are tanks and supply trucks that do not have gas? This may seem silly today, because we are not at war with China.

In support of this opinion, many nations like Japan learned long ago that warfare in the physical sense is foolish and destructive, because it diminishes the productive capacity of the nation unless they can build new factories just as fast as their enemies can blow them up.

Today, the real modern warfare is economics. If China shuts down U.S. companies that depend on buying iron at a certain price in order to earn a profit after U.S. labor costs, then they take our market share and our productive capacity depends on whether China will sell us what we need. Prices are good today because Chinese labor costs are low, but it will not stay that way according to economic theory. Eventually the FDI, which exceeds our nation, will create even more jobs and economic prosperity in China. The end-result will increase wages, and hopefully it will improve working conditions.

However, if China does not sell to us anymore and they do the same bullying routine in other international markets, then we could be at a serious economic and military disadvantage. Should we trust China and believe that they want to change for the better? Here is an article that may shed some light on that question.

“China wants to suspend human rights talks with the United States. The news came after Washington said yesterday that it will condemn Beijing’s serious violations with a resolution at the UN Human Rights Commission currently underway in Geneva. The Chinese foreign minister called the action taken by the Americans a ‘serous meddling in China’s internal affairs.’ China’s Vice Foreign7 Minister said the ‘clash intentionally provoked by the United States has now seriously damaged any basis for dialog and discussion on human rights issues between both countries. China must immediately suspend talks and discussion.’ Yesterday, US State Department spokesperson, Richard Boucher, expressed the American government’s disappointment with Beijing’s inadequacies in improving human rights conditions in the country, after commitments it undertook in 2002 and 2003. Boucher also stressed Washington’s concern about ‘backward steps’ being taken by China, as reported in the American government’s world human rights report released last Feb. Last year the United States asked for a resolution, stating that Beijing had made limited, though significant progress in the sphere of human rights. The resolution was presented each year after the brutal repression of the student protestors in Tiananmen Square in June 1989. This year various human rights organizations, like Human Rights Watch, asked that the United States to put back a motion to blacklist Beijing. Even American trade union representatives requested that their government condemn China for the way it trades its labor force. Meanwhile Amnesty International called for a moratorium on the death penalty on China, reporting that the Chinese legal system does not guarantee fair trials and often punishes innocent persons. Yesterday the AI published a report titled ‘Executed according to law?’ ‘The report was released following statements made by a member of Chinese Parliament who said that every year there are at least 10,000 people sentenced to death in China 5 times more than all cases of capital punishment registered worldwide’.”8

The Chinese people are very much like our own with the exception that they communicate more through context and women are not valued very highly in their society. They also have four different cooking styles based on the four different regions. They speak different languages in each region, and they have a wide array of different traditions based on the former cultures that lived there before. China does not tolerate freedom of speech and they frequently kill anyone who is suspected on saying negative things about the current government. There is no defense or
fair trial, and basic human rights are not valued by their government. Their economy is state controlled, but they are slowly changing into a free enterprise economy.

I think that trading with China is mutually beneficial as long as they are not buying up significant amounts of raw materials that affect our national security. After the “911 attacks on New York and the Pentagon”, security measures at the ports are very strict in the US.9 The Port of Tacoma and the Port of Seattle have cameras, tall fences, and security personal strategically placed. They also conduct more customs inspections than before, and canines are commonly used to find people and contraband. The US also has a satellite system that detects nuclear radiation, infrared (heat signatures), records and filters every electronic conversation in the US, and video records the activities of the world’s ports. They also pay very close attention to refrigerated and abnormally heavy containers for biological weapons and shielded nuclear material.

China does not perform any significant security measures other than custom inspections accompanied by armed guards. Custom inspectors frequently accept bribes to expedite export and import processing, which creates a huge delay for companies who did not pay bribes or paid less. Dogs are also used for detecting contraband, but they use german sheppards instead of beagles. German sheppards are know to be effective in chasing down people and enforcing security. However, beagles have two hundred times the ability to smell contraband. This means that their port security is seriously lacking unless they physically inspect every crate, which they do not normally do whenever a bribe is taken to expedite the customs process.

Recently, the Port of Tacoma purchased three cranes from China to unload containers off the ships. They purchased scrap iron from suppliers in Washington State, melted the iron down, manufactured the cranes, and sold them back to us for less than domestic companies could make them.
Inventories of iron are currently state managed and exceed “70% of iron imports internationally”.10 US laws regarding customs are identified as governing security measures domestically. Otherwise, maritime laws apply to shipments.

The political ramifications of cutting off certain resources to China will make them an enemy. In order for the US to be effective at cutting off the massive purchasing campaign of iron by China, it will need allies who are all the current trading partners to do the same thing. However, this would also make them enemies of China, and suppliers are becoming very wealthy by selling their raw materials for a higher price to China. This means that international trading partners must have a significant reason to cut China off or limit them other than the US’s economic prosperity.

Culturally we also have to consider that the Chinese want a better life, and they want independence. It is unlikely that the US will be able to push the Chinese government into giving their people human rights without completely replacing their government or waiting a significant number of years for their human rights policies to catch up with the rest of the civilized countries in the world.

Geographically, China has taken over Hong Kong, which is the largest shipping location of Chinese imports and exports. The decision of the Chinese government to take over Hong Kong assures their ability to distribute goods internationally without major changes in worldwide distribution. Economically, we must understand that China has a lot to offer in terms of cheap labor and outsourcing, but it may come with a steep cost in the near future.

Letters of credit are guaranteed by international banks in Malaysia and China based on current deposits. This insures payment on receipt of goods for both imports and exports. The global marketing process for government contracts is the same as it is in the US. Foreign bidders are required to send a proposal to the government authority issuing the contract. Whether they choose to buy or not from a foreign source is a balance between price driven economics and supporting local companies.

China has no restrictions on the treatment of their employees, the ages of workers, the hours they work, the healthcare of employees or their working conditions. US employers must abide by laws concerning the treatment of minors, paying overtime, paying wages, paying health and unemployment benefits, discrimination, etc.

Foreign investment in China is carefully controlled in specific sectors and industries. Foreign investment in the US is allowed as long as it does not negatively impact our national security. This is why the US government stopped China from purchasing a controlling position in the U.S.’s primary oil supplier. However, it is almost a guarantee that they will try again.

If you choose to do business in China, please carefully consider the implications of your actions. Making a great profit is very important, but it can never come at the expense of our lives, the lives of our children or the world’s stability and security. I think the world has a great opportunity everyday to change for the greater good, maybe our enemies will decide that building a better world for everyone is better than petty arguments over land, money and religion.

Bibliography
Flannery, Russell. At Your Service, China! New York, NY: Forbes, 2007

Goodman, Peter S. China Ends Fixed-Rate Currency. Washington DC: Washington Post, 2005

Hersh, Adam S. China’s currency manipulation and U.S. trade. Washington, DC: Economic
Policy Institute, 2003
http://www.epinet.org/content.cfm/webfeatures_snapshots_archive_10302003se

Hill, Charles W.L. Global Business Today 5th Edition. New York, NY: McGraw-Hill Irwin,
2008

R., M. Beijing suspends human rights talks with United States. Geneva: Asia News, 2004
http://www.asianews.it/view4print.php?l=en&art=524

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It is not that easy to get an entry in the international trade market of China, especially for global health products. The legal and government system in China is very complicated and it involves a good amount of paperwork, which sometimes baffles the investors. The work council and labour unions in China outsourcing are very influential and the laws are very strong regarding the security of the international trade. The real fun of China outsourcing business regarding global health products is that we meet a lot of great people along the way. Everyone we meet has a wealth of experience that is invaluable in terms of China outsourcing in international trade of global health products. Phenomenal growth of global health products has a lot to do with the relationships with customers, vendors, and strategic alliances in the international trade market. Creative ideas are tossed around when we interact with clients, vendors and China outsourcing professionals. Involvement is the key word in any business. Obligation is not the same as a social connection that stresses the importance of relationships. Aspiring to profit from a China outsourcing business is not always the same as succeeding in international trade business.

China should incorporate total quality management techniques in its outsourcing of global health products to assure its international trade customers that Chinese outsourcing global health products are of the highest quality. In addition, Chinese Government should implement stringent oversight mechanisms on its global health products to maintain its economic growth and consumer confidence in Chinese global health products.” Buyer beware,” is applicable on both China outsourcing and international trade scale. And in an international trade food market, the phrase, “we are what we eat,” takes on a whole new meaning. To develop and execute a successful business plan for outsourcing Chinese global health products, it requires a good understanding of the profits and losses associated with it. The international trade for China outsourcing market is a network which works competently using their connections in the market for the sale of global health products.

China global health products’ directory or database is undoubtedly the best place to begin our search for China outsourcing procedures in international trade. A good China outsourcing Directory will invariably place us in a position to approach supplies of our choice based on facts and figures. Using a China supplier’s data base, we’ll immediately have the driving position with respect to China global health products suppliers and be able to bypass middlemen and wholesalers and thus the associated costs, as per latest procedure adopted in China outsourcing and international trade. There are online and offline databases for China outsourcing professionals, global health products suppliers and most of these are pioneers in international trade. While choosing a general database may present us with countless options, China outsourcing specific directories can be assumed to be more authentic both in their choice of credible global health products suppliers. International trade specialists, China global health products suppliers directory, recommends China outsourcing as No.1 in the international trade market.

If you are interested with us, please visit the website tootoo.com (http://www.tootoo.com/?source=articles)

Chinese males are increasingly faced with a perennial dilemma that has perplexed Western males for over half a century: Whether to buy a box of beer in glass bottles or cans. China’s beverage packaging market, once extremely glass-based, is rapidly evolving into newer forms on the back of technological advancements and changing consumer habits. Cans, PET bottles, and one-way glass bottles have emerged as more viable vehicles for the sales of beverage products.

HORECA sales of beverages (i.e. the food services sector) in China remain an important source of revenue – this is especially true for beer; around 95 per cent of glass bottle sales of beer are for on-premise consumption. However, in the face of decreasing average earnings per hectolitre of beer in China over the past few years, breweries are looking to the home consumption market to improve revenue growth. This is the same for other beverage makers.

The growing home consumption market has been identified as a key target to improve sales volumes, but it remains a challenge. Changes in demographics, consumption behaviour, purchase patterns, and the rise of organised retailers (supermarkets, convenience stores etc.) over the years have necessitated the increasing use of new primary packs and price point strategies to drive the home consumption volumes. These new primary packs have to incorporate solutions to address: Product shelf life (vital for carbonated beverages); ease of handling; distribution; and environmental concerns.

As competition increases, marketing and brand managers have to continually identify new ways of staying ahead of the competition and defend their products’ market share. This in turn has further increased the impetus on using the primary packs as an effective tool for brand differentiation on the shelf.

When considering the most effective home consumption primary pack for the Chinese market, physical factors such as the size, spread, and homogeneity of the consumer population, quality of roads and other distribution infrastructure, nature of retail trade need to be looked at. Looking at the development of markets in Europe, countries that have large populations and hence require high-capacity filling lines as well as transportation of goods over long distances due to a greater spread of target population have all developed into strong cans markets. The advent of modern retailing and consumer choice has helped to turn many Eastern European countries into can markets too.

Following the European experience cans have a clear case for developing as the preferred primary pack for Chinese beverage makers. The same experience was made by the cola majors, Coca Cola and Pepsi, who began shipping their beverages across long distances from the US to the Middle East market in the 70s and 80s.

However, a successful cans strategy needs to focus beyond addressing and conquering these physical business attributes. Even if there are clearly identified advantages of cans being the preferred packaging for home consumption, to achieve growth in sales any strategy needs to build in a clear market approach targeted towards influencing consumer behaviour in favour of cans.

Here, we lay out the fundamentals of establishing a legal entity for business purposes.
There are several ways to establish a presence in China; how to do so will depend on your level of commitment, the size of your planned investment and the particular industry in which your company operates.

When a foreign investor decides to launch a business venture in China they will need to decide whether to launch the business in the form of an actual capital investment or whether to look for local distributors or suppliers. The latter approach does not require sizable investment but you should ensure that your contractual arrangements are binding and enforceable.

The business registration process is prone to bureaucracy and over regulation. Using an authorized agent or legal representative can assist with the process. Even when using an agent for registration, you should bear in mind that certain locations in China and special economic zones are geared to attract different types of industries and offer tax incentives or financial inducements.

Foreign investors without a comprehensive understanding of the China market may wish to test the market strength first to see whether it is worthwhile to establish a full operation in China and invest a large sum of capital.

The investment required is dependent upon the scope of business, volume of sale and company size, and is judged on a case-by-case basis. Chinese authorities will consider what would be a reasonable capital injection for each specific project in question, and where the intended investment is in the field of manufacturing will look closely at whether there are environmental impacts or waste disposal requirements.

Those with more experience and understanding of the China market who intend to conduct a full range of business activities need to establish a legal entity. In that case, the form of the entity chosen is quite crucial. Aspects that have to be considered are the sector of business and amount of money invested; if a Chinese partner is desirable or even mandatory for the business; and other general commercial and strategic considerations. Foreign investment is classified into encouraged, restricted or prohibited categories, so it is important to determine which category your industry falls within.

In Summery, A clear understanding of the investment and business options available will be crucial to successfully establishing a business and operating in China. With China’s gradual compliance with its WTO membership obligations, the business registration process should also continue to become more streamlined and transparent.

For more information visit: http://www.chinadirectsourcingservices.com.au

1. Take all the time in the world

Foreign business visitors are often deadline-driven and unwilling to slow down to the Chinese pace when discussing business. But in China the pace can be quick and slow at the same time. Those involved in negotiations know how long they can drag on when the Chinese side is consulting internally or has other reasons for delay. But Chinese negotiators can move with great speed on other occasions. Part of this feeling is subjective. Any chess player knows how long you have to wait for the other player and yet how fast you must move yourself. Nevertheless, Chinese negotiators use time more consciously than their Western counterparts.

2. Understand to separate fact from fiction

Almost everything you hear about China is correct, and so is the opposite. Western thought is centred around linear logic whereas Chinese thinking is influenced by early philosophers, who saw a paradoxical balance of opposites in all circumstances. Where Westerners tend to look for exact alternatives (option A instead of option B), the Chinese may examine ways to combine both option A and option B. This difference in approach may make a foreigner think that a Chinese negotiator is being implausible, evasive or devious, when they believe they are actually being straightforward.

3. Build relationships

Foreigners generally build transactions and, if they’re successful, a partnership results. However, the Chinese believe that prospective business partners should build a relationship first and, if successful, commercial arrangements will . This difference underlies many misunderstandings arising from business negotiations. Almost all successful transactions in China result from careful cultivation of the Chinese partner by the foreign one, until a relationship of trust evolves.

4. Cultivate ‘guanxi’

The logical development of tight relationships is the Chinese concept of guanxi, pronounced gwan shee. According to business analyst Tim Ambler of the London Business School, the kernel of guanxi is doing business through value-laden relationships. In a very centralised, bureaucratic state, the use of personal contacts was the only way to get things done. Guanxi is the counterpart of a commercial legal system. Where the latter is relatively weak, as in China, the need to rely on guanxi will be strong. As long as the partnership is more significant than the transaction, it is logical to honour it. The thought of a relationship leading to business is . But Easterners who are familiar with guanxi are more cautious than Foreign converts. The accountability of guanxi are very real. In the incorrect place, at an inappropriate time, with unsuitable people, the obligations can become a trap that is hard to escape.

5. Exhibit extra caution with contracts

Chinese and Westerners often approach a transaction from different ends. To a Westerner, starting with a standard contract, changing it to fit the different circumstances, and signing the revised version, seems fine. Commercial law is built intoour thinking. But traditionally, commercial law rarely existed in China and certainly indicated bad faith. The early appearance of a draft legal contract was seen as inappropriate or, more likely, irrelevant, because it carried no hint of commitment. The business statements might form a useful agenda, but obligations came from partnerships, not pieces of paper. Today, returning home with a signed piece of paper is a symbol of progress, but that is all. The Chinese may be signing a contract to humour their guests. To them, a completed contract may merely be the proof that both sides have become close enough to develop a trusting partnership. Further concessions may then be requested – a difficult prospect for the Westerner who has reduced his margin down to barely.

6. Mobilise local assets

The challenge of learning to speak Chinese fluently, the complexities of the Chinese way of doing business, and a strong sense of patriotism mean that a foreigner will only rarely be acknowledged by Chinese interlocutors on equal terms. The solution is to find a reliable local ally to work with you. An effective Chinese colleague will be able to analyse body language at meetings, work out who in the other negotiating team holds real power – not always the boss – and assist to smooth out any inadvertent issues. Conversely, the presence of a foreigner should be exploited to the full. Chinese interlocutors will often see a visit by a foreigner as an indication of sincerity and commitment by the Foreign business. Perversely, they often do not accord mainland Chinese or Hong Kong representatives the same status as a foreigner. The perfect sales team, therefore, is usually a local to take care of the working level contacts, and a foreigner to do honour to the higher echelons.

7. Respect face

Face is an important component of the Chinese national psyche. Possessing face means having a great status in the eyes of one’s peers, and is a gauge of personal dignity. The Chinese are very sensitive to acquiring and maintaining face in all parts of social and business life. Face is a valued commodity which can be given, lost, taken away or earned. Causing someone to lose face could ruin business prospects or even invite recrimination. The quickest way to have someone to lose face is to put-down an individual or criticise them in front of others. Foreigners can accidentally insult Chinese by making fun of them in a joking way. Another error can be to treat someone as a subordinate when their status in an organisation is high. Just as face can be lost, it can also be given by complementing someone for great work before their colleagues. Giving face earns respect and loyalty, but praise should be used rarely. Over-use suggests insincerity on the part of the giver.

8. the pecking order

Mao Zedong’s thoughts on discipline published in 1966 give a valuable view into structures which exist in Chinese organisations even now: “The individual is subordinate to the organisation. The minority is subordinate to the majority. The lower level is subordinate to the higher level.” This quotation, which underlies the way China was governed for over 2 decades, why Chinese society and organisations are very hierarchically organised, and why Chinese people seem to be more group oriented than individualistic and often do not like to take ownership. Similarly, people are seldom willing to give an opinion before their collegues as it might cause loss of face with a trusted ally.

9. Know the tricks of the trade

Eastern negotiators are shrewd and use a wide variety of bargaining tactics. The following are just a couple of the more common strategies:

- Controlling the meeting area and schedule
The Chinese know that foreigners who have traveled the great distance to China will be to go home with nothing. Putting pressure on foreigners just before their planned return can often bring useful benefits to the Chinese side.

- Threatening to do business somewhere else
Foreign negotiators may be pressured into making allowances when the Chinese side threatens to approach rival firms if their demands aren’t met.

- Using friendship to extract allowances
As soon as both parties have met, the local side may remind the foreigners that true friends would come to an agreement of high mutual benefit. Make sure that the pay off is in reality mutual and not just one-way.

- Showing your anger
Despite the Confucian aversion to displays of anger, the Chinese side may put on a show of deliberate anger to put pressure on the foreign party, who could be afraid of missing out on the contract.

- Attrition
Chinese negotiators are patient and can draw out discussions in order to ground their interlocutors down. Excessive hospitality the day before discussions can be another variation on this theme.

10. Play the game yourself

Foreign negotiators dealing with Chinese could find some of the following tactics successful:

- Be totallly prepared
At best one individual of the foreign team should have a thorough understanding of every part of the business arrangement. Be ready to give a long and all-inclusive presentation, taking into account not to give sensitive technological information before you arrive at a full agreement.

- Play off competitors
If the going gets hard, you may let the local side know that they are not the only manufacturer {in the are area. Competition between Chinese producers is increasing. There may be other sources in the country for what your counterpart has to offer.

- Don’t rush
Easterners generally believe that Westerners are always in a rush, and they may try to get you to sign an arrangement before you have adequate time to go over the details.

- Be prepared to deal with your losses and go home
Let the Eastern side know that failure to agree is an possible alternative to making a negative deal.

- Cover every aspect of an agreement before you commit to it
Talk over the whole agreement with the Chinese side. Make sure that your interpretations are consistent and that everyone understands their duties and obligations.

11. Get expert advice
Often, strong enthusiasm to deal with the Chinese replaces normal due diligence that would be expected before committing. Too frequently, Australian companies try to negotiate with local distributors, wholesalers, joint ventures and manufacturers, and get what they believe are good trading terms, only to find out things aren’t what they seemed. Communication is the key to avoiding this, and if you don’t you have quality representation in China, you will find this difficult.

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