China sourcing is the process of identifying, qualifying and buying from suppliers based in China. The work may cover finished goods, components, tooling or contract manufacturing.
How buyers use the term
Start with the product and manufacturing process, then search the industrial regions that support that process. Compare the quoted price with tooling, inspection, freight, duty, inventory and currency costs.
| Checkpoint | Question to resolve |
|---|---|
| Entity | Which legal business will contract, invoice and receive payment? |
| Site or basis | Which facility, standard or rule supports the supplier’s claim? |
| Release | What evidence must be approved before the order, shipment or payment proceeds? |
Evidence to retain
Keep the supplier legal name, registered address, factory location, business licence, quotation, sample approval, quality plan, purchase order and payment evidence.
Practical limitation
A trading company can be a useful supplier, but buyers should know when it controls the factory relationship and when the named factory is only a subcontractor.
Related definitions: China Supplier Verification, China Manufacturing Sourcing, China Plus One Strategy.
