China Business Education Center
A working education center for buying from China — from first product idea to delivered container. Written from a trading company's daily experience, not from a textbook.
Step-by-step: buying from China
1. Define what you actually need
Before you write to any supplier, define product, specification, quantity, quality tier and delivery point. Vague inquiries get vague quotes.
2. Find and verify suppliers
Use Alibaba, 1688, Made-in-China and Global Sources for search, but verify separately: business licence, Baidu/qichacha search, video factory tour, references and independent visits. Distinguish factory, trading company and agent.
3. Ask for quotations the right way
A good RFQ carries product spec, unit, MOQ, target price, packing, port, Incoterm and payment terms. Ask for a signed proforma invoice, not just a chat message.
4. Order samples and lock them
Approve golden samples in writing before production. Photograph and seal them; every production batch is judged against the sealed sample.
5. Sign a real contract
A sales contract should name the parties, product, spec, quantity, price, packing, Incoterm, port, payment, inspection, penalty, rejection ladder, IP ownership and dispute resolution.
6. Quality control and inspection
Plan three checkpoints: during production (DUPRO), pre-shipment (PSI, AQL) and container loading (CLC). Use a third-party firm (SGS, BV, Intertek, TÜV) or trusted independent inspectors.
7. Packaging, labelling and marking
Specify carton and pallet dimensions, weights, markings and language of user manuals. Confirm barcode formats and require compliance labels (CE, FDA, halal) up front, not at loading.
8. Freight, insurance and Incoterms
Match freight mode to lot: containers for LCL/FCL, bulk for very large lots, air for urgent samples. Set Incoterm consciously — see our incoterm guide inside the hub.
9. Customs, HS codes and certificates
Confirm HS codes at origin and destination — they drive duty. Prepare invoice, packing list, MTC (for metals), MSDS, CO and B/L. Check REACH, RoHS, FDA and other destination-market rules.
10. Payment and holding a lever
Common terms: 30% T/T advance + 70% against BL copy; L/C at sight for larger lots; escrow (Alibaba Trade Assurance) for first orders. Avoid full-advance to unknown suppliers, and never pay to a personal account.
11. Take delivery and close the loop
On arrival, inspect the container seal, check quantities and quality, and close the file only when the exception list is agreed. Keep the entire paper trail — you may need it for warranty or dispute.
Buyer's checklist
- Product spec, quantity, quality tier and delivery point defined in writing
- Supplier's business licence checked, plus qichacha or Baidu search
- Video factory tour completed or independent visit arranged
- Signed proforma invoice with all terms — not just a chat quote
- Golden sample photographed, sealed and referenced in the PO
- Sales contract signed with penalty and rejection ladder
- QC plan agreed: DUPRO + PSI (AQL) + CLC by a third party
- Packing, labelling and barcodes confirmed against destination rules
- HS codes checked at origin and destination; certifications listed
- Payment structure protects a lever (never 100% advance to unknown suppliers)
- Freight, insurance and Incoterms fixed; documents list agreed
Payment methods and safety
Bank transfer (T/T)
The workhorse: 30% advance + 70% against BL copy. Fast, cheap, works with reliable partners.
Letter of credit (L/C at sight)
Payment against documents through banks — for larger contracts. Slower but disciplined.
Alibaba Trade Assurance
Alibaba holds the funds until you accept — best for first orders on the platform.
Escrow (third party)
Independent escrow services for orders outside major platforms.
D/P (documents against payment)
Bank releases documents on payment — useful for medium-trust relationships.
Open account
Ship first, pay later. Only for well-established, long-term suppliers.
Common risks and how we handle them
Sample-vs-bulk drift
Chemistry, colour or workmanship change from the golden sample. Answer: sealed samples, DUPRO + PSI, penalty ladder in the contract.
Late shipment / hostage-of-holiday
Chinese New Year and Golden Week compress schedules. Answer: book production 8–10 weeks before departure, freight 3–4 weeks.
Origin substitution
Trader sells a factory's price but ships from another. Answer: verified factory audit and MTC / certificate of origin with heat numbers.
Payment fraud (fake bank account)
Hackers change payment instructions by email. Answer: confirm bank details by phone with a known contact — never pay to a personal account.
IP theft
Designs copied and sold. Answer: NNN or NDA under Chinese law, trademark registration in China, staged production.
Compliance surprise
Missing certification blocks customs clearance. Answer: check destination rules before you order, not before you ship.
Trade terminology (English–Chinese–pinyin)
| English | Chinese | Pinyin | Practice note |
|---|---|---|---|
| MOQ / Minimum Order Quantity | 起订量 | qǐ dìng liàng | Ask early — MOQ often has flexibility. |
| PI — Proforma Invoice | 形式发票 | xíng shì fā piào | Signed PI locks the deal. |
| PO — Purchase Order | 采购订单 | cǎi gòu dìng dān | Your side's PO; must match the PI. |
| BL / B/L — Bill of Lading | 提单 | tí dān | Original often required at discharge. |
| CI — Commercial Invoice | 商业发票 | shāng yè fā piào | Value document for customs. |
| PL — Packing List | 装箱单 | zhuāng xiāng dān | Cartons, dims, weights — for freight. |
| MTC — Mill Test Certificate | 质检报告／材质单 | zhì jiǎn bào gào / cái zhì dān | Non-negotiable for metals. |
| MSDS — Material Safety Data Sheet | 化学品安全说明书 | huà xué pǐn ān quán shuō míng shū | Required for ocean and air chemicals. |
| CO — Certificate of Origin | 原产地证 | yuán chǎn dì zhèng | Sensitive to preferential-tariff rules. |
| HS Code | HS 编码 | HS biān mǎ | Confirm at both origin and destination. |
| FOB / CFR / CIF | 离岸／成本加运费／到岸 | lí àn / chéng běn jiā yùn fèi / dào àn | See our Incoterms guide. |
| LCL / FCL | 拼箱／整箱 | pīn xiāng / zhěng xiāng | LCL for small lots; FCL for full container. |
| DUPRO | 中期检验 | zhōng qī jiǎn yàn | Mid-production checkpoint. |
| PSI / AQL | 装运前检验／可接受质量水平 | zhuāng yùn qián jiǎn yàn / kě jiē shòu zhì liàng shuǐ píng | Statistical sampling standard. |
| Golden sample | 封样 | fēng yàng | Sealed and referenced in the PO. |
| Trade Assurance | 贸易保障 | mào yì bǎo zhàng | Alibaba's built-in escrow. |
| T/T (Telegraphic Transfer) | 电汇 | diàn huì | Fastest common payment. |
| L/C at sight | 即期信用证 | jí qī xìn yòng zhèng | Bank-driven, disciplined. |
How LinkWin can shortcut this for you You do not need to master every step yourself — LinkWin runs the workflow end-to-end while keeping you informed at each gate: sourcing, verification, sample, contract, QC, freight, documents, delivery. One accountable contact, in your language.
General educational information — final terms belong in your contract.