How to Reduce Your China Manufacturing Costs

China manufacturers are a top choice for many global businesses looking for ways to bring down the costs of doing business while offering their buyers the best quality products. But product sourcing from China is not always a paradise for all businesses. Without proper budgeting strategies and good negotiation skills, you may end up with twice the original cost of your product.

Several factors that affect contract manufacturing in China must be carefully considered. These “hidden” costs include  international restrictions on trade, lack of information, slow growth, increased competition and many others which make sourcing a lot more expensive and even more complex than previously anticipated. There are lots of tips that you can however use to shave off some of the costs and save money during the process. Here’s how you can get the best deal from the China manufacturers:

Shopping in Trade Fairs

Chinese trade fairs are the best places to meet many credible manufacturers and suppliers in China. If you have problems building the necessary trade relationships that will support your supply pipeline withChina manufacturers, then galavanting is your unique window of opportunity. It also allows the possibility to reduce manufacturing costsby comparing the various options offered by many suppliers.


Negotiation is one of the basic essentials in business. If you have the type of charm that can woo the hearts of many, then it’s about time to show off those haggling skills. When it comes to reducing production costs, don’t be afraid to play hardball. After all, it is your money which is at stake. Negotiations are not always easy if you are new to the market. It’s important to contact experts or agents who can negotiate with manufacturers or suppliers in order to get you the best deals possible as far as outsourcing is concerned. In China, some layers of complexity are introduced due to the differences in language and culture. If you are new to this market, you will obviously need expert negotiators who understand the Chinese languages and business psyche.

Pay Close Attention to Tax Issues

If you’re not careful, you may end up paying double taxes in the procurement of goods from China. Carefully evaluate the conditions which may result in double taxation and take steps to prevent that. It’s important to hire expert trade consultants or agents who have valuable experience in China product sourcing. There may also be bilateral agreements or provisions regarding the import of certain goods which may help you cut down on your liabilities. The best thing is to always do thorough research and collect as much information as possible before you plunge into an import business with China manufacturers.

When you are planning to outsource manufacturing to China, consider working with experts who can handle the various aspects of the product sourcing such as negotiations with Chinese factory owners, product sampling, production process and quality control. When it comes to international outsourcing where big money is involved, you can’t afford a passive approach that would put your business at the risk of committing costly mistakes.