Everyone is moving to China, is this right for me? Where I can get help.
We will suggest you firstly do an assessment: You must make your own decision to move to China, and a careful cost analysis is a critical part of this decision. A China-based competitor's price, adjusted for quality and market position differentials, can serve as an initial guide. Total cost analysis will incorporate cost savings (the largest portion of which is usually cheaper labor and components) and additional costs incurred, such as the initial setup costs and higher freight costs and duty payments. A more complex model will include sensitivity analysis to anticipate different scenarios, such as a government-forced slowdown or widespread power shortages.
Don’t worry about cost appraisal research and analysis, we will help you with it to make sure you get the right figures and make right decision.
Are there any methods to check the reputation, credibility and financial status of China manufacturers and China factories?
No.
That's why it is so important to choose a manufacturing partner in China with rich experience and a track record. We have a proven track record of helping companies source a diverse range of their products from selected manufacturer from China and to invest in China. Our long term Contract Strategic Manufacturing Group which has been built up for years (a network of world-class manufacturers in the most strategic low cost regions of China) is second to none.
Will I be able to speak with someone in English about my product?
Yes.
We have management on the ground in China, also staffs in our UK office whose first language is English to communicate with you. Fully understanding of your requirement by efficient, accurate and technical communicate is an absolutely essential part of manufacturing successfully in China. Besides, we also help you with verifying contract both in English and Chinese by our solicitors to make sure your benefits are protected. Please visit our translation and legal assistance section for more information.
What do I need to know about approaching a Chinese manufacturer independently?
Overcoming the barriers of language and culture can be a challenge.
Trade negotiations are often drawn out and should be begun several months before you plan to start trading or manufacturing. In fact, your first couple of meetings with your supplier will usually be ‘getting to know you’ sessions. This is because business relationships in China are built upon friendship and trust, hence the saying ‘no friendship, no trade’. The good news is that, when you have successfully nurtured such a relationship, you can expect it to be a long lasting one.
A Chinese native and native language speaker is regularly offered a more favourable price than non-Chinese westerners. This is often because an outsider simply does not have the opportunity to get to know the supplier. In our experience, this could mean a difference of up to 20 percent between the unit cost price we are offered and the price our client was given when approaching the same supplier independently.
If I want to invest China or setup manufacturer in China, what is the benefits?
Foreign-invested manufacturers enjoy a tax rate of 15 percent, as opposed to 33 percent for domestic enterprises, and the government rebates up to 15 percent of value-added taxes (VAT) on exports. Though the government has plans to unify the business tax structure and phase out some of these incentives, localities are likely to continue to offer incentives to investors.
What are the purchasing channels for doing business within China?
As you are a foreign company, products which originate in China currently reach you through several purchasing channels, almost all of which involve commission being added to your cost of goods - even if you believe you are dealing directly with a factory, this does not necessarily mean that this is so.
Other companies currently source through the expensive gateway of Hong Kong or, as an outsider, get charged premium rates for their goods. This is because there is very often a significant difference between the prices manufacturers charge to native customers and those they charge to foreign ones. The difference is further exacerbated by membership of, or exclusion from, a trusted clique or network of business relationships. With our connections and our long term Contract Strategic Manufacturing Group (a network of world-class manufacturers in the most strategic low cost regions of China) we are already on the inside and can secure you significantly better prices and terms than you could manage independently.
Caymeo can, furthermore, introduce you directly to the manufacturers, in order to help you develop an intimate, trusting and long-lasting personal relationship--something that is not to be expected of other third-parties or middlemen, who are aggressively interested in concealing their sources.
What business etiquette should I be aware of when working with Chinese companies?
You could do a lot worse here than consulting our consultancy page for more information.
I want to import or manufacture products from China. If Caymeo acts as my import agent, how does it work?
There are several working models you can choose from or we can design a customized model just fits for you.
We could deal with manufacturers on your behalf, and secure the best price, quality and terms available. Once you are happy with the price, quality and, where applicable, samples, you will need to raise a L/C (Letter of credit) or TT (Telegraphic Transfer) payable to ourselves, or to the manufacturer depending upon the model we negotiate. Once this is in place we will place the order with the manufacturer.
What if I switch to you and things go wrong?
This is something we have done for years. We make the transition as smooth as possible and none of our customers has regretted the move - some have been with us over 10 years. We work with our customers to minimise the chances of this happening: Our specialist QA and QC staff can adapt our control checks to match your own; your approval is a central part of the process and you sign off every stage of manufacturing.
What about the copyright or patent of my product?
We can sign a Confidentiality Agreement or Mutual Non-Disclosure Agreement. In addition, remember that the Chinese legal system (Civil Law system) is not the same as you are used to (Common Law system). You can get legal protection by our China local solicitor team. Our legal assistant page will give you more information.
Are there MOQs (Minimum Order Quantities) ?
There usually will be a MOQ for different products especially for those products need tooling, it will be also determined on a case-by-case basis.
What is initial start-up time for sourcing China?
Getting a sourcing operation up and running may take longer than you anticipate, depending on the complexity of your product and your supplier's abilities. Finding a new supplier almost always requires new molds or new lines and plenty of quality control. With the help of Caymeo, we can massively reduce the time scale and our risk management keep you in a safe place.
Can I get my goods independently inspected?
Yes, there are world recognised inspection companies such as SGS whom you could contact help you inspect goods. A fully comprehensive report will be issued against your requirements set out in the purchase order. Caymeo also act as an independent inspector to inspect every stage of production by our industrial specialists from Pre-Production Check (PPC), During Production Check (DUPRO) till the last stage of Final Random Pre-shipment Inspection (FRI). Please check our service details by click here.
How long it takes and how much it costs ship from China?
Typically, shipping via ocean from China to the US and EU country takes approximately 26-35 days. Additionally, air freighting goods takes within 7 days for bulk shipments. Caymeo will look after all the logistics and ensure you benefit from “best value”. For cost details, please visit our logistics pages and information centre.
Where I can get import and export duty information from? What is my product export duty from China and import duty into my county?
You can visit our information centre to get more details on duty information. Usually, duty is paid to your country Customs and Excise. We can advise you of the relevant rate, when I have full product details. Once goods arrive at destination country, If VAT (EU/UK) is applicable, then it is also due.
How we charge?
Initial inquires are absolutely FREE! We help you start to look at China market without any pressure. Once you decide to working with us for mutual benefits, We can match our payment model to suit your requirements.
We will in all cases inform you of all costs and commissions. All charges will be agreed with you before any work commences so there will be no unexpected invoices.
Any facility I can access if I visit China? Any service you could provide?
You can use our offices right in city centre of Shanghai with high standard office environment which get all the facilities you would expect to find in a modern office. We provide serviced office rental as well if you want. Caymeo will arrange visits, interpreters, flights etc according to your requirement.
Where I get started with my sourcing project from?
Sourcing products from China unassisted can be daunting. Click here to Tell Us What You Want to start with.