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Purchase From China and Guanxi Relationship
In the past China has been exporting only tea to the rest of the world. Though China still exports agriculture and food, there is a steady growth in exports on electronics and technology every year. It is estimated that wholesale products purchase from China save at least $100 billion for the Americans due to the low cost of living and cheap labor in China. Multinational purchasing is a win-win situation for both American buyers who purchase high quality goods at cheaper prices and Chinese suppliers who sell their wholesale products through global sourcing.
-Major Importers of China
The low prices of Chinese products get passed on to the ultimate customer in global sourcing. United States, as a large developed nation, has money and power to purchase from China and China as a large developing nation utilized the money for its education and labor resources. China exports its wholesale products to major countries of the world with Japan, United States and Hong Kong, being main importers among them. In the past three decades of trade with United States, China has grown as a prime importer of the United States. Small and big foreign companies and corporations are trying to have their foothold in China to satisfy their customers back home by taking advantage of most favorable financial and cost incentives for their trade with China.
-Key to successful wholesale business
To establish successful wholesale business with China through global sourcing, some key factors must be maintained. The business expectations on multinational purchasing must be realistic and pragmatic. Chinese patiently handle the business negotiations by taking more time unlike American fast business expectations with unrealistic negotiations and goals for business in China. Project time and results depend largely on the influential factors of Governmental agencies and legal requirements. However a local ally from China may help in sorting out the cultural and bureaucratic barriers.
-Guanxi- Personal Relationship
Understanding Chinese Culture should precede doing business with them by visiting China to have meetings with wholesale business partners and prospective customers for developing better market knowledge and starting Guanxi, the personal relationship. Guanxi is an important element to the success of the business venture. To get better results in China it is necessary to develop Guanxi relationships with customers and business partners as a part of Chinese culture. The relationship is more powerful and important than even a legal agreement.
About the Author
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