How can I start trading with China?

How can I start trading with China?

From making payments to understanding currencies, we've outlined four key steps to help your business start trading with China.

Image
"I want to begin sourcing products from China, but I don’t know where to start. How do I make sure the supplier I decide upon is reputable and won’t leave me high and dry with poor quality products?"

Online B2B marketplaces and directories that connect Western businesses with the East, like Alibaba, are a good place to start. It’s worth conducting due diligence from the comfort of your desk in the UK as "trusted" status on some marketplaces can be "purchased" for the price of a fixed subscription fee, so it isn’t necessarily indicative of the past or future performance of the supplier. To help, Alibaba has a Trade Assurance scheme to protect your order if you’ve paid through Alibaba.com

Once you’ve done your initial marketplace research (and perhaps even ordered a few samples), the next step is to reach out to your peer network to see if there are any suppliers they’ve done business with that they would personally recommend.

Unfortunately, many online sellers’ competitive advantages lie in their supplier network, so asking them to divulge their secrets might not land you with the word of mouth recommendations you were hoping for, but it doesn’t hurt to ask. Finally, a trip to the Canton Fair or visiting select manufacturers and warehouses on the ground in China (perhaps those that you originally found on online B2B marketplaces) is the most sure-fire way to establish productive working relationships and build trust on both sides.

Exporting was probably summed up best by Will Butler Adams, CEO of Brompton Bikes. He told us businesses just need to “Get out there, have a laugh, meet some funny people, eat weird food, drink funny whisky. Exporting is a good laugh. It’s a such a no-brainer.”

In short, there are no guaranteed cheap and/or quick ways to find a supplier in China – there are very few shortcuts that don’t result in lots of trial and error for online sellers.

Pay like a local

  • Pay suppliers, partners and staff in 40 currencies
  • Send up to 200 payments in a single transaction to save time and money 
  • Open up to 10 local currency accounts, with local sort codes, account numbers and IBANs
  • Lock in conversion rates to manage your currency risk
Open a free World Account
I want to pay my Chinese supplier in CNY, can you help?

Yes, WorldFirst can reach banks anywhere in China, so you can use a World Account to pay your Chinese suppliers in CNY.  Our fast and secure payments make it easy to pay your overseas suppliers.

 

Where can I sell my products in China?

TMall, JD.com and Kaola are all popular marketplaces that cater to the domestic Chinese market. Alongside those, a rise in social media platforms offering e-commerce capabilities and features, such as WeChat Shops, allows huge audiences to seamlessly purchase products without having to leave the social media site, a boon for a country almost surgically attached to their smartphones. And if your brand can handle the lower exposure, launching your own standalone e-commerce site could offer you more ownership over the customer experience (and cut out commission costs per sale), providing you get the UX right and can handle longer loading speeds that turn off local shoppers used to snappy domestically-hosted websites.

 

What is the difference between CNH and CNY?

Currency in China can be confusing. Some call it RMB, short for renminbi, which is the equivalent of calling the pound ‘sterling’, while you may also hear people refer to it as the ‘yuan’. 

Image
Jason Kaye
Experience: 10 years writing within the e-commerce, finance and tech landscapes
8761:full

The art of delegation is essential to master – to improve efficiency, boost morale and save money.

Nov / 2022
Learn More
6650:full

Businesses should look at the psychology of decision-making to end groupthink.

Nov / 2022
Learn More
8730:full

5 million Brits work overseas, but how can you get wages to your international workers?

Nov / 2022
Learn More

Businesses trust WorldFirst

Since 2004, more than 240K businesses have utilised WorldFirst to send more than £87bn around the world.

Map of the world

What our customers say