Buying from China remains one of the most powerful competitive levers for European companies. But it is also a minefield for those who do not know the codes. Alibaba, incoterms, certifications, logistics — every step can become a problem if not handled correctly.
Here are the 6 critical points to validate before placing any order in China — drawn from 12+ years of field experience in Shanghai and Southeast Asia.
Verify Your Suppliers
Alibaba is a powerful tool — but it carries significant risk. The platform is full of traders posing as manufacturers, suppliers who subcontract without telling you, and intermediaries who inflate prices without adding value.
A physical audit or factory visit is mandatory before any significant order. This is not a formality — it is your only real guarantee that the factory exists, has the capacity to produce what you need, and meets your standards.
- Request and verify the company's official Business License
- Cross-check information against official Chinese business databases
- Compare the registered address with the actual factory location
- Assess equipment, workforce and real production capacity on site
Master Incoterms and Sales Terms
Incoterms define who is responsible for what, at which point and how far. Not mastering them means signing a contract without reading its most important clauses.
The most frequent mistakes: accepting an FOB price without anticipating the cost of sea freight, or worse, accepting EXW which leaves you managing logistics from the factory gate in China.
- EXW — ex-works: you manage everything from China. Avoid unless you have a freight forwarder in place.
- FOB — most common: supplier delivers to port. You manage ocean freight.
- CIF — supplier handles freight and insurance to destination port. Convenient but less control.
- DDP — delivered duty paid: all-inclusive. Ideal for first orders.
Verify Import Certifications and Standards
Every country, every product category, every material has its own regulatory import requirements. Ignoring this can result in goods being blocked at customs, fines, or even destruction of your shipment.
The correct approach:
- Check with customs and your freight forwarder before placing the order
- Identify required certifications (CE, FDA, REACH, LFGB depending on market and product)
- Request the corresponding certificates directly from factories
- Verify certificate authenticity with the issuing laboratories
Inspect Your Goods
Never pay the balance of an order without having inspected the goods. This is one of the golden rules of sourcing from China — and one of the most frequently ignored by first-time buyers.
- Require 3 signed copies of the approved sample — you keep an undisputable reference
- Do not hesitate to pay for a sample if necessary — it is your protection
- Implement a formalised quality control process before every shipment
- Commission a pre-shipment inspection by an independent third party on significant orders
Choose the Right Freight Forwarder
Never leave logistics in the hands of your supplier. This is an absolute rule. When your supplier manages transport, you lose control of your goods and become dependent on their relationships — not yours.
Be cautious with large names like DHL or FedEx too — they are convenient for small volumes but expensive and not always suited to industrial shipments.
- Work with an independent freight forwarder — not the one recommended by your supplier
- The ideal forwarder has its own offices in both the origin and destination countries
- Verify they are fluent in customs procedures in both directions
- Compare sea, air and express freight quotes based on your volumes and deadlines
Build Processes and Stick to Them
In China, process is king. Chinese suppliers are generally less proactive than their European counterparts — they wait to be told what to do, when and how. This is not a criticism — it is a cultural reality that needs to be built into your working relationship.
This means you must create the habit: regular check-ins, progress reports, step-by-step validations. This framework will reassure your supplier as much as it protects you.
- Formalise every stage: order, production, QC, shipment
- Communicate clearly, simply and directly — avoid ambiguity
- Use WeChat for day-to-day communication, email for contractual matters
- Always favour negotiation over confrontation — face (mianzi) is fundamental in Chinese business culture
To Summarise
Buying from China is not rocket science — but it requires method, rigour and a solid understanding of the local landscape. These 6 tips are the result of 12+ years of sourcing between Shanghai and Southeast Asia, hundreds of factory visits and dozens of orders managed from start to finish.
If you have a sourcing project in China or Southeast Asia and would like support, contact us — we would be happy to discuss it.