15 Chinese Trading Company List: China International Trading Company

Unlike exclusive distributors appointed by manufacturers in other parts of the world, manufacturers in China are open to everyone, but their terms and conditions are strict. A China trade company can give flexibility in terms of delivery, shipment, and easier methods when import from China.

I would say that at least 25-40% of buyers are willing to buy non-capital goods from China trading companies, but they won’t buy capital goods from traders due to warranty and after-sales issues.

So if you are thinking about establishing some sort of ties to China trade company, then this article is for you.

What Is a China Trading Company?

A China trading company act as a source to provide a variety of goods to customers produce at different units. They are also known as intermediaries that function as a bridge to bring together the buyers and sellers.

They source the products from the factories and sell them to the customers under their name. The rate charged by the trading company is higher than the factory rate as they include various expenses they bear for acquiring the goods.

Trading companies have tremendous experience in the imports and exports field and thus well-cognizant about the laws and rules regarding imports and exports of goods.

They build a network with various manufacturing companies and deal with multiple manufacturers and suppliers to maximize the sale.

In order to be a successful trading company in China, they have to add hard-to-find products and factories in your product range. However, for all the hard work these companies do to find exclusive products for you, they charge the clients charges higher than the actual company rates.

How to Identify a Trading Company or a Factory?

Suppose you intend to do business in China. In that case, you must be aware of the type of company you are dealing with. To identify between the manufacturing factory and trading company; the most simple way is to ask them directly. (e.g. A supplier’s profile on Alibaba says they are a trading company.)

The Checklist: How to Audit a Qualify Trading Company in China?

Finding new Chinese suppliers in some cases, it is reasonable for importers to work with trading companies and rely on them to manage development and production properly.

Since China trading companies are supposed to follow up on production and all communication goes through them, it is crucial to ensure they are well organized.

The Impact of Order Organization on Import Success

As I’ve previously written, the level of organization of a China trading company can significantly impact the success of an importer’s business. Here are two common scenarios to illustrate this point:

Disorganized Buyer + Disorganized Trader + Disorganized Manufacturer = A Huge Mess: In this scenario, the lack of organization at every stage of the supply chain leads to delays, miscommunication, and ultimately, a failed import.

Disorganized Buyer + Very Organized Trader/Agent + Disorganized Manufacturer = Few Problems: This scenario demonstrates that even with a disorganized manufacturer, a well-organized trader can effectively manage the import process and mitigate potential issues.

Unfortunately, it can be challenging for buyers to assess the level of organization of a China trading company. Several clients have approached us to assist them in this task. Since some China trading companies do not have a production process, we have compiled a checklist to help buyers evaluate their organizational capabilities. The checklist is based on the ISO 9001 standard and consists of four main sections. Here are some examples of checkpoints from each section:

1. Quality Management System

• Does the China trading company have a comprehensive understanding of procurement-related and quality-related processes?
• Are there standard procedures in place that are easily accessible to employees?

2. Management Responsibilities

• Does the China trading company measure customer satisfaction and track repeat orders?
• Does the company have job descriptions for each position that clearly outline the required skills, education, and experience?

3. Provision of Resources

• Does the China trading company have a formal training program for employees? If so, can the company produce records to demonstrate its effectiveness?
• Does the company have a formal employee evaluation program? If so, can the company provide documentation?
• Are samples properly identified, stored, and protected?
• Is there adequate test/measurement equipment available in the office, and is it suitable for the products being imported?

4. Product Realization

• Does the China trading company prepare or have access to perfect pre-production samples for each product?
  Are changes to customer requirements clearly documented (e.g., sample identification, specification sheet versions)?
• Does the China trading company have a document that outlines the criteria for accepting mass production (e.g., a spec sheet with expected results and tolerances)?
• If there are modifications to a process during duplicate orders, does the company seek customer approval before proceeding with the new batch? (Provide an example email illustrating this process.)
• If a batch of products does not meet customer requirements, does the China trading company notify the customer immediately and seek instructions on how to proceed? (Provide an example email illustrating this process.)

By carefully evaluating these checkpoints, buyers can gain valuable insights into the organizational capabilities of China trading companies. This information can help them make informed decisions about their sourcing partners and ultimately improve their chances of success in the import process.

5 Types of China Trade Company

There are several different types of China trading companies, each with its own strengths and weaknesses. Here are some of the most common types:

1. Manufacturer-based trading companies:

These companies are affiliated with a Chinese manufacturer and specialize in sourcing and exporting products from that manufacturer. They typically have a deep understanding of the manufacturer’s products and processes, and they can often get you better prices than you could get by dealing directly with the manufacturer. However, they may not be as flexible as other types of trading companies, and they may be limited to the products that their manufacturer produces.

2. Trading agent companies:

These companies act as intermediaries between importers and Chinese suppliers. They do not own any factories or inventory, but they have a network of suppliers that they can source products from. They typically offer a wider range of products than manufacturer-based trading companies, and they may be more flexible in terms of pricing and delivery terms. However, they may not be able to offer the same level of quality control as a manufacturer-based trading company.

3. International trading companies:

These companies are typically larger and more established than the other two types of trading companies. They have a global network of offices and agents, and they can handle the entire process of sourcing, exporting, and shipping goods. They typically offer the most comprehensive services, but they may also be the most expensive.

4. E-commerce trading companies:

These companies specialize in sourcing and exporting products from China for sale online. They typically have a strong understanding of the e-commerce market, and they can help you to create and manage your online store, as well as fulfill orders.

5. Specialized trading companies:

There are also a number of specialized trading companies that focus on specific industries or product categories. For example, there are companies that specialize in exporting textiles, electronics, or furniture. These companies can provide you with a deep understanding of the specific market you are targeting, and they can help you to find the best products for your business.

How to Choose a China Trading Company?

The best type of China trading company for you will depend on your specific needs and goals.

1. If you are looking for the best possible price, then a manufacturer-based trading company may be a good option.

2. If you need a wider range of products and flexibility in terms of pricing and delivery terms, then a trading agent company may be a better choice.

3. If you need a full-service provider that can handle the entire process of sourcing, exporting, and shipping goods, then an international trading company may be the best option.

4. And if you are specifically targeting the online market, then an e-commerce trading company may be the right choice.

Best 16 Chinese Trading Company List:

Below are the 15 international Chinese trading companies list, provide you best international trading solutions and trade agency service in China.

When Buy Through a China Trading Company or Agent?

Finding New Suppliers, I have mentioned in several articles that China trading companies are sometimes the best option for small importers. And two people recently asked me to confirm/explain this.

I think it depends on several factors like:

• Do you have time to track development and production? Can you spend, say, 10 hours a week researching every product and every supplier?

• Can you come to China, visit the factory, and get to know the people you work with?

• Do you have the basic technical understanding to make informed judgments about your product and your market requirements?

• Are you operating in a risky legal environment (eg children’s products sold in Europe)? Do you need to demonstrate that you understand your supply chain and have taken all necessary steps to reduce risk?

• Have you found a manufacturer who understands what you mean, has an English-speaking salesperson and is interested in your business?

The more “no” you answer, the more your relationship with the trading company will improve.

The fifth issue (finding interested manufacturers) is often a major hurdle for small importers. Large factories are reluctant to spend time working on very small quantities. Trading companies can often find small factories that are interested in your small orders…and these small factories cannot deal directly with export customers.

Of course, you must qualify the trading company: knowledge of your industry, reference clients, etc. And I always recommend treating them as service providers (certain procedures to follow, certain notifications to send…) rather than product suppliers.

Advantages of Chinese Trading Companies

There are multiple advantages associated with buying products from the trading companies operating in China. Here we have enlisted the few:

• Suitable products:

Compared to factories, trading companies are more aware of the customer’s demands and latest market trends and thus provide more suitable products to the clients. While on the other hand, factories mainly specialize only in a single product and cannot entertain multiple customer demands.

• Market awareness:

As the trading companies rely on customers for their existence, hence they tend to establish their market by having reliable customer care services. The more they connect with the clients, the better will be their survival chances.

• Wide product range:

The trading company usually offers products from small-scale manufacturers who do not have enough resources to sell their products to multiple markets. Thus a trading company identifies the need and resources for the products to be delivered to the clients. Also, some of the companies make products to be purchased in bulk which is not suitable for small-scale buyers; thus, they depend on trading companies to buy the product in bulk and then buy from them.

• Marketing:

Marketing is the most crucial factor involve while establishing a trading company. As the company needs sales to achieve the business goals, they have to build a strong marketing network to promote the products.

How to Choose Between the China Trade Company and a Factory supplier?

There is no definitive answer to the question of whether to work with a factory or a China trading company. Both business structures have their own unique advantages and disadvantages.

Advantages of Factory:

• More control over the production process
• Ability to customize products to your specifications
  Lower prices

Disadvantages of Factory:

• Less flexibility in terms of order quantities
• More time-consuming to work with directly

Advantages of China Trading Company:

• More flexible in terms of order quantities
• Easier to communicate with
• Potentially faster turnaround times

Disadvantages of China Trading Company:

• Higher prices
• Less control over the production process
• May not be as knowledgeable about the product as a factory

Ultimately, the best choice for you will depend on your specific needs and requirements. If you are planning on buying large quantities of products or want to customize a product, then working with a factory is the best option. However, if you are looking for flexibility and convenience, then a China trading company may be a better fit.

Can a company be a manufacturer and China trading company at the same time?

Yes,

many factories do a certain amount of trading. This can be a good option if you are looking for a company that has both production and trading expertise.

Good example for China trading company, As Brad Pritts: 

We have achieved overall (but not 100%) good results using trading companies with Chinese employees. As suggested, the local presence of the trading company could provide a more continuous follow-up, and I think there is a deeper connection to the factory. I also want trading companies to earn commissions, and that’s what good trading companies do. I hope they bring awareness and comfort to Western business practices. Good companies also provide technical supervision. As the saying goes, “You can eliminate the middleman, but you can’t eliminate his function”.

While recognizing that a trading company is a different business, for the most part, we treat people in a trading company as if they were the sales department of a factory; we respect their relationship and keep prices private discussions, but all other issues are Fair game discussion with the factory.

Negative example for China trade company, Michelle：

Hi, I am from China and worked in both trading company and factory(trading) before, the service quality between the trading company is really different, a lot of trading companies are pretending to be a factory and have little control over the factory (quality) unless you are a big buyer. I am now working for a brand in the U.S., I never thought how incompetent a lot of trading companies are(mostly in sec-level cities): not professional, avoiding direct problems from a customer, and especially for the small trading company is not able to take full responsibility on the quality problem because of little money they have. And the pure factory (for my industry) requires big volume quantity, it is very hard for small/independent brands to enter.

Friendly reminder:
1. Don’t place an order before the prototype, if you have problems in the prototype the chances are the quality will be bad in bulk.
2. Alibaba lists are misleading a lot of time, companies are posting fake pictures and videos

The Big Trouble in Small China Trade Company

They are also come cons when you choose to cooperate with a trading company in China.

China Trade Company Clash of interests:

China trade company work in a pretty delicate situation where they have to sell the products at competitive rates without losing their margin. So, they use to work with manufacturing units that are working on a small scale and do not have enough resources to reach international clients. Also, these factories also face the language barrier, which became an advantage for trading companies. The small manufacturing units need proper coaching to handle the quality and delivery expectations of the international clients.

Trading companies hide the quality issues:

Most of the China trade company in China work with importers and thus need to deliver products across the globe. So, if there is a quality or service issue, these companies mostly tend to keep their mouth shut to avoid losing their customers.

 But by hiding the quality issues, they will end up losing customer’s trust. So most of the companies offer the importers to check the quality of the products by themselves, and they will only communicate, purchase and ship the products.

China Trade company has no control over factory products:

China Trade company work with factories on a goodwill basis, there is no contract involved, and if something goes wrong, then they have zero control over the factories. There is a minute proportion of trading companies that have a stake in the factories and thus use their power to influence the quality.

The little to no control over factories often leads to various financial strains to a trading company as they prefer to lose some money over customer loss. Factories also prefer to do business with foreign clients who cannot frequently replace suppliers. While in the case of a trading company as it is residing in China, there are more chances of switching to other suppliers.

As mentioned earlier, factories do prefer foreign businesses on local traders, so they invest their efforts accordingly.

Trading Company in China Conclusion

So, how to choose between trade company and manufacturer, It depends on two factors, one is the importer’s business volume and the other is their knowledge sourcing in China.

If the importer has a small business volume, they usually choose a trading company instead of a manufacturing company due to the limitation of the MOQ, and their orders with the factory are not enough to negotiate, and a trading company is a good choice.

Another factor is knowledge of Chinese, Chinese business rules, etc. Compared with most factories, trading companies know more about foreign trade business, but more and more manufacturers realize this problem and they start to supply goods directly to overseas customers.

• So large and medium-sized importers may choose a manufacturer instead of a trading company for profit margin reasons.
• For small importers, the difference is not much, they are more willing to deal with trading companies, and communication is faster and easier.

Again, you must qualify the China trade company: knowledge of your industry, reference clients, etc. And I always recommend treating them as service providers (certain procedures to follow, certain notifications to send…) rather than product suppliers.

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