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10 advantages of sourcing from China

The practice of manufacturing products in China is one that international companies recognize as an asset. Many brands use this opportunity and it has become a common practice in Chinese manufacturing. Because of the low labor cost, many product sourcing firms find it profitable to source products from China.
In the last few years, many small and medium-sized enterprises and leading brands have recognized the importance to source products from China. China produced 28% of all global vehicle production in 2019. China has also been a popular destination for Original Equipment Manufacturers.

If you do it correctly, imports from Chinese manufacturers can increase your profit margin and lower labor costs. It also ensures uninterrupted supply throughout all year. However, there are still many misinformation and myths. Some claim that high-quality products cannot be found in China. The truth is, however, that sourcing from China may be the best option.

As specialists in China, we can help.

China will change your mind.
The Growing Chinese Economy

China is now the world’s second-largest country. It has recently been recognized as the biggest manufacturer in the world. It has been recognized for being the most influential manufacturing nation for two years. This country’s economic growth is rapid and sourcing the products could prove to be a positive step for a business owner. International companies are able to identify the Chinese sourcing agents’ capabilities and create a selling-buying relationship to succeed in the market. Chinese sourcing agencies (like us), can help you locate the best suppliers.

Speed and low cost benefits of country sourcing

E-commerce has accelerated the pace of trends and decreased the rate that products are copied. The internet and E-commerce have made speed-to market a higher priority. China’s integrated supply networks are an advantage when it comes fast-tracking your supply network.

Its production systems offer an unmatched concentration of input suppliers, assembly plants, skilled workers, and service provider — all on a huge scale for a wide variety of low-tech, high-tech, and mid-tech products.

A European Commission report shows that China exports 76% of its goods’ value, which is close to the EU’s 87%). This shows how dependent it is on imported inputs. This explains why China has been able to produce goods that require multiple components, such electrical ones.

Expansive Supplier Base

Businesses from Western countries can access a vast network of Chinese suppliers. This is one reason why so many successful companies are now able to import products like toys, electronics, and textiles.

You’ll be able to access an extensive supplier list at your disposal and benefit greatly from working with a professional sourcing agent. Such companies have the ability to leverage their years of cultural understanding, knowledge, relationships, and connections to help you import goods from any part of the world. We can help you.

How to Reduce Risks

If you are looking to source products from China, make sure you have a well-run sourcing process. This will help you reduce potential risks. Being involved in the sourcing of products from China will mean that you will have to be present at every stage. This will enable you to get early warnings about fraud risks, undue profits and untimely delivery so that you can respond quickly.


Although other factors are becoming more relevant, finding good value at an affordable price remains a top priority when sourcing. China is at a stage in which rising productivity and quality gains can partly offset rising labour, compliance, and property costs. Read more about China executive searches.

China’s productivity is rising because of its rapid pace and automation. A Boston Consulting Group report found that US carmakers employed three times as many industrial robotics in 2011 than Chinese factories. However, China reached parity in only five years.

Higher Scaling Capabilities

China has a strong infrastructure. Chinese manufacturers are also well-versed in global supply chain management and have many years of experience. They can scale up manufacturing whenever and wherever it is needed.

You can, for example, increase your sourcing product numbers from a few thousand up to over a million in a matter of days or even weeks. Scaling up is dependent on the product you are selling and the availability for raw materials.

Most manufacturers do not require that buyers place a large amount of money in Minimum Order Quantity. MOQ costs are significantly lower, which allows small businesses and startups to source small quantities of products.

However, scaling up is possible as your business expands. Manufacturing in China is a great way for a brand new company to establish itself.

Freedom to Choose Desirable Factory

You don’t have the right to inspect the working conditions and terms of local suppliers when you choose them. Only tell your supplier about the product. If your supplier can deliver the product you desire, it will be a blessing. With China sourcing services however, you have the option to visit the factories and verify their working conditions. You also have the opportunity to visit a number of factories and discuss all your requirements. When you order products directly from China you have the ability to choose the best products and the factories that produce them.

China: Sustainable Sourcing

Due to the increasing demand for ethically produced goods by consumers, as well as the ability of the internet and social media to change a brand’s reputation in a matter of hours, sourcing teams are being forced into social and environmentally responsible sourcing (refer to our page about Chinese tax and accounting services).

China’s established exports industry makes finding inspection agencies and suppliers who are experienced in international compliance standards relatively easy.

Direct Sourcing

Buyers often need to deal directly with middlemen when outsourcing. This can cause delays and increase sourcing costs. You can however directly deal with the manufacturer when sourcing products from China.

China’s OEM sector is very competitive. Manufacturers prefer to deal directly and avoid having to pay multiple middlemen. You may only need to work with one product source agent in some cases. This makes it easier for you to start the project.

Online marketplaces make it easy to find a trustworthy supplier or representative agent. This can be done by visiting different Chinese markets or through the help of a skilled sourcing agent. You should hire an experienced and reliable manufacturer.


If you just get faster at sourcing wrong goods, speed is not enough. You must be able to respond quickly to customers’ needs to unlock profitability.