Procurement and transportation services in China

Procurement and transportation services in China

Why trade with China?

There are several compelling advantages to trading with China. Here are a few of the main reasons why countries trade with China:

Manufacturing Hub: China is known as the world's factory due to its strong manufacturing capabilities in various industries. It offers competitive prices, efficient production, and a wide range of products, making it attractive for importing goods.

Market Size: China has a large domestic market with more than 1 billion consumers. This makes it a lucrative destination for exporters looking to tap into its consumer base and expand their market reach.

Infrastructure Development: China has invested heavily in infrastructure development, including ports, railways, and highways, providing an efficient logistics and transportation network for international trade.

Cost Efficiency: Due to economies of scale and lower production costs, goods made in China are often competitively priced than those made elsewhere, benefiting importers and consumers around the world.

High-Quality Manufacturing

Despite many negative comments about the quality of Chinese products, you can still find the best products in China at reasonable prices.

The fact that they produce goods in a variety of qualities allows you to offer different prices and qualities to your customers

Supply Chain Diversification: Many countries rely on China as a major source of components, raw materials, and finished products, contributing to the diversification and resilience of global supply chains.

These factors, and others, have made China a key player in global trade and a strategic partner for many countries seeking opportunities for economic growth and market expansion.

How to Find the Best Time to Trade with China

Finding the best time to trade with China depends on several key factors, such as production cycles, holidays, and market demand. Here’s how to choose the best time:

1. Avoid major Chinese holidays:

- Chinese New Year: Factories shut down for 2-4 weeks and production slows down. Avoid placing orders during this time.

- National Day: A week-long national holiday that disrupts logistics and business operations.

- Mid-Autumn Festival and other local holidays: Shorter holidays, but still affect the supply chain.

2. Plan around production cycles:

- Peak production period: Many manufacturers increase production from March to June and September to November. This is a good time to stabilize production and fill orders faster.

- Off-season: July-August and December will have slower production and more flexible pricing, but be aware of potential delays.

3. Pay attention to global demand trends:

- Pre-holiday peak: If you are importing Christmas or Black Friday promotional products, place orders a few months in advance (June to August) to avoid shipping delays.

- Back-to-school season: Order supplies, electronics, and fashion items around April-May for timely delivery.

4. Shipping and logistics considerations:

- Ocean freight costs: Container prices tend to spike before global holidays and the year-end peak (September-November). Book shipping in advance to save costs.

- Rail and air freight: China-Europe rail services such as Wuhan to Hamburg can see high demand during peak season. Check the schedule and book in advance.

5. Monitor currency exchange rates:

Good exchange rates can reduce procurement costs. Keep an eye on the Chinese yuan (CNY) and local currency trends.

6. Check the trade fair calendar:

Attend major events such as the Canton Fair (April and October) to meet suppliers and explore new products in person.

China’s Main Exports:  

China is one of the world’s largest exporters, known for a wide range of manufactured goods. Key exports include:  

1. Electronics and Machinery:  

   - Mobile phones, computers, and consumer electronics  

   - Electrical machinery and equipment  

   - Semiconductors and integrated circuits  

2. Industrial and Mechanical Equipment:  

   - Construction machinery  

   - Vehicles and automotive parts  

   - Industrial tools and manufacturing equipment  

3. Textiles and Apparel:  

   - Clothing, shoes, and accessories  

   - Home textiles like curtains and bedding  

4. Furniture and Household Goods:  

   - Furniture, lighting, and home décor  

   - Kitchenware and appliances  

5. Plastics and Chemicals:  

   - Plastic products and raw materials  

   - Organic and inorganic chemicals  

6. Medical and Pharmaceutical Products:  

   - Medical devices and protective equipment  

   - Pharmaceuticals and active ingredients  

China’s Main Imports:  

Despite being a manufacturing giant, China imports a variety of essential goods to support its economy and production needs:  

1. Energy Resources:  

   - Crude oil and refined petroleum  

   - Natural gas and coal  

2. Raw Materials:  

   - Iron ore, copper, and aluminum  

   - Timber and pulp for paper production  

3. Agricultural Products:  

   - Soybeans and grains  

   - Meat, seafood, and dairy products  

4. High-Tech Equipment:  

   - Semiconductor chips and electronic components  

   - Advanced machinery for industrial production  

5. Vehicles and Automotive Parts:  

   - Luxury cars and specialized vehicles  

   - Auto components not produced domestically  

6. Pharmaceuticals and Medical Supplies:  

   - Advanced medicines and healthcare products  

   - Medical research equipment  

Steps to Start Trading with China

Whether you want to import goods from China or export products to the Chinese market, trading with China involves several key steps

1.Research and Identify Products:

Choosing the right product is the most important step in your trading as it determines your profits.

You need to consider many factors such as:

• Market demand

• Profitability

• Competition

Decide what you want to import or export. Research demand, pricing, competition, and regulations. For example, if you are importing electronics or textiles from China, check product quality standards and market demand.

2.Find the best suppliers

If you are an importer, look for trustworthy Chinese manufacturers or suppliers through platforms such as Alibaba, Made in China, or trade fairs such as the Canton Fair.

If you are an exporter, look for Chinese buyers, distributors, or partners - usually through B2B platforms, industry networks, or local chambers of commerce.

There are many potential suppliers in China, many of which are trustworthy. However, you need to find the best suppliers to increase your profits and reduce transaction risks. Remember that no other country has such a rich information of wholesale markets, suppliers, and manufacturers. Therefore, do your best to find the best suppliers and build long-term relationships with them.

3.Understand regulations and compliance:

Importing from China: Make sure products comply with your country’s quality, safety and customs regulations.

Exporting to China: Comply with China’s import requirements, including product certification, tariffs and labeling rules.

Negotiate terms and contracts:

Agree on pricing, payment terms, delivery schedules and international trade terms (such as FOB, CIF, etc.). Make sure all details are in writing to avoid misunderstandings.

4.Get the best price from the seller

Of course, the price of the product is the most important factor in the transaction. It determines how much profit you make, so try to get the best price possible.

You have to research the typical costs in the field so you can compare. After that, you can negotiate with the seller and even get discounts for bulk orders.

5.Arrange Payment Terms

Choose secure payment methods like:  

   - Letter of Credit (L/C) for large orders  

   - Telegraphic Transfer (T/T) for faster payments  

   - Trade Assurance for safe transactions on Alibaba  

6.Handle Logistics and Shipping

You’ll need a reputable shipping company for this step. The more experience the company has in handling international shipments, the less risk you’ll have to take.

Decide on transportation:

Sea Freight: Cost-effective for bulk orders; ports like Ningbo Zhoushan are key for global shipping.

Rail Freight: Fast and cost-efficient for Europe-China trade; Wuhan to Hamburg rail is a major route.

Air Freight: Fast but costly; best for small, high-value goods.

Remember to check all the details with the shipping company. For example, you have to consider factors such as shipping time, cost and type of cargo. VIPUTRANS can help you in this regard because we provide the best shipping services. We will provide you with the best shipping method based on cost, quantity and time.

7.Prepare Documentation do customs clearance

 Ensure proper paperwork for customs clearance:  

   - Commercial invoice  

   - Packing list  

   - Certificate of origin  

   - Bill of lading or airway bill  

What are the modes of export transportation from China?

China’s export transportation network is one of the most advanced in the world, offering multiple efficient and cost-effective options. The main modes of export transportation from China are:

1. Sea Freight (Maritime Transport)  

   - Most Common and Cost-Effective: Ideal for large volumes and heavy goods.  

   - Major Ports: Ningbo Zhoushan Port, Shanghai Port, Shenzhen Port, and Guangzhou Port handle a huge portion of China’s exports.  

   - Container Shipping: FCL (Full Container Load) and LCL (Less than Container Load) options.  

   - Best for: Bulk goods, raw materials, and manufactured products.  

2. Rail Freight  

   - Fast and Cost-Effective for Eurasian Trade: China-Europe rail routes, like the Wuhan to Hamburg railway, offer reliable delivery with shorter transit times than sea freight.  

   - Main Routes: China-Europe Railway Express connects Chinese cities like Wuhan, Chongqing, and Xi’an with European hubs like Hamburg and Duisburg.  

   - Best for: Electronics, machinery, and high-value goods requiring faster delivery.  

3. Air Freight  

   - Fastest but Most Expensive: Best for urgent shipments and lightweight, high-value goods.  

   - Major Airports: Beijing Capital, Shanghai Pudong, Guangzhou Baiyun.  

   - Best for: Electronics, pharmaceuticals, and luxury items.  

4. Road Transport  

   - Cross-Border Trucking: Used for exports to neighboring countries like Kazakhstan, Russia, and other Central Asian nations.  

   - Flexible and Direct: Good for smaller shipments or areas without direct rail or sea access.  

   - Best for: Regional trade within Asia.  

5. Multimodal Transport  

   - Combines Two or More Modes: For example, rail-sea or air-road to optimize cost and speed.  

   - Example: Rail from Wuhan to Hamburg, then road transport for last-mile delivery.  

   - Best for: Balancing cost, speed, and flexibility.  

If you want to purchase goods in China and transport them to your own country, please feel free to contact us. We can provide you with one-stop service.

Lora Yang       E-mail: sales02@viputrans.com      SKYPE|WECHAT|WHATSAPP|MOB:+86 13424468029