By Steven Chow

We have answered hundreds of China inspection, quality control, and trade dispute-related questions in our Ask Steven forum at Chinawhy.net. We have had some great questions, some repeats, and some slightly weird ones – involving sourcing human hair, for instance.

Check out some of our best questions. You might find the answer you’re looking for.

Q: Can you help me find reliable iPhone sellers in China?

A: There are no authorized Apple iPhone sellers in China yet. But there are millions of copy iPhone makers and sellers out there. Don’t try to buy international brand electronics like iPhones, Nokia mobile phones, Toshiba laptops, etc., from China; You will be scammed.

Q: But aren’t some of those products produced in China?

A: First, neither the original equipment manufacturers nor the resellers are entitled to export any product they produce or distribute. Second, it would be suicide if those brand companies sold their products at extreme low prices in China (when they’re selling them for so much more in say, the U.S.).

Q: Are there any trustworthy companies in China? I have been scammed several times by Chinese companies.

A. It is highly suggested to make due diligence efforts before you enter into a contract with a Chinese supplier, especially when you are trading online and you never visit them. The following advice should be followed to screen suppliers: 1) Make payment to a company account only; 2) Ask for a business license and check the company name and registration number with the local administration of industry and commerce (AIC); 3) Google “company name [+scam]” and see what you find; 4) Paying an on site visit is always important; 5) Sign a contract properly.

Q: May I know where can I find human hair wholesale in china?

A: Conducting brief research, we couldn’t find human hair wholesale at a market in China. But you can simply go to a B2B website like Alibaba.com or Globalsources.com to search ” human hair”; There are many companies that wholesale that product. It is highly suggested that you verify a company listed on a B2B website even if they come recommended on the online site.

Q: We ordered two containers of grinding and cut off wheels. Unfortunately, the standards agency will not allow them into the country. I have spoken to them and they confirm that these items are in breech of the standard and will be rejected worldwide. I have spoken to the Chinese manufacture and asked if we can return the goods to them for a refund; They have refused. Surely this is fraud. Please advise me what I can do now to recover my money, and who I need to contact to take this matter further.

A: If the failure to meet the standard caused by the supplier is in material breach of the contract, the best way to solve the problem is trying to file a lawsuit. Other than that, you can make a complaint to the local government, but practically, this is a contractual dispute, the government is not in a position to try to investigate to prove your claim. We have had clients that have been in similar situations. We help them get the refund by threatening to file a lawsuit while trying to solve the problem out of court.

Q: I have seen the comments about the purchase of Little Swan by Midea. What do you think is the best way for Indesit to go to the Chinese market?

A: I think there are two options out there: 1) Buy a competitor here in China, make use of their manufacturing capacity, distribution channels, brand awareness and HR resources. That is the shortcut; 2) You launch a campaign here by your own. Buy a CCTV commercial, partner with Gome and/or Suning (they both are home appliance chain stores giants in China).

I would recommend the first option. The reasons are: 1) You can outsource your manufacturing work in China to lower the price; 2) You already have established brand, production capacity, human resources, sales and maintenance networks to use rather than setting them up your own.

Editors’ note: Steven Chow is a Harbin-based business consultant and dear bizCult friend. You can ask Mr. Chow a China sourcing/business question here if you like. This article is reprinted with permission - with modificiation - from Chinawhy.net.

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