How to Start a Business with China from Scratch?

Today, the perception of the phrase "made in China" has dramatically changed. Firstly, high-quality products are manufactured in China. Secondly, nearly everything is produced in local factories—from jewelry and branded clothing to household appliances and industrial equipment. It's no wonder that China is becoming an increasingly attractive destination for those who are starting a business or want to grow their existing ventures.

How do you start trading with China, and what products should you import from China to Kazakhstan? What nuances should you consider? How do you open a store selling Chinese goods without taking a wrong turn?

Why Choose Chinese Suppliers?

Selling Chinese-made products is not an innovative business plan, but it is an extremely effective strategy for growing your business for the following reasons.

Alternative to European Products

European suppliers undoubtedly offer high-quality goods, and most brands are concentrated in Europe. However, imports from EU countries are not always economically feasible. Kazakhstan's location significantly extends logistics chains, which means higher costs.

With Chinese suppliers, the situation is as favorable as possible. Firstly, Kazakhstan shares a land border with China, simplifying logistics and reducing costs. This border is near Almaty, Kazakhstan's second-largest city. Secondly, China's industrial capabilities can meet any business need, allowing you to sell a wide range of products—from stationery and children's toys to smartphones. Thirdly, as previously mentioned, the quality of Chinese products is comparable to European goods.

Competitive Prices

The most popular products from China can be ordered at the best prices. The flexible pricing policy is due to two factors. First, most Chinese manufacturing is automated, eliminating human errors, speeding up the process, and optimizing costs. Secondly, the intense competition among domestic manufacturers drives suppliers to offer good prices and establish long-term partnerships.

Low prices allow for profit margins on Chinese products in Kazakhstan ranging from 50% to 100%, enabling your business to grow and scale quickly.

Opportunity to Implement Unique Ideas

Many companies profit by offering popular products directly ordered from Chinese manufacturers, such as smartphones, tablets, cases, screen protectors, headphones, etc.
However, competition in these niches is quite high: dozens of major stores in Kazakhstan have been working with Chinese suppliers for many years.

However, you can carve out a niche by offering a unique product, and Chinese suppliers can help with that. For example, you could create a collection of T-shirts with anime characters, laptop stickers, or funny thermal cups during the current anime craze.

You can develop your idea in two ways. First, you can search for suppliers who offer a similar product. Second, you can develop a product from scratch: find a factory that makes T-shirts and create the designs. In China, you can manufacture almost anything.

Additionally, there’s another important point: Chinese suppliers are just as interested in you as you are in them. The reason is fierce competition. Chinese suppliers value foreign partners and offer them the best possible cooperation terms.

Whom Can You Work With?

When considering business partners, look not only at manufacturers but also at traders and retailers.

Manufacturers

Factories are very meticulous about product quality, conducting multi-level inspections. Manufacturers also offer optimal prices on products, and before you order goods from China to Kazakhstan, they often allow you to purchase a trial batch and invite potential partners to the factories to evaluate the production facilities and cooperation potential.

However, manufacturers are interested in large and regular orders: minimum orders usually start at $10,000.

Traders

Traders act as intermediaries between manufacturers and buyers. One feature of traders is that they work with businesses of all sizes—small, medium, and large.

These business partners offer prices that are 10–15% higher, but this is offset by the fact that you can order small batches of different products, usually up to 150–200 units per batch.

Retailers

This option is suitable for businesses dealing with small batches of products (1–2 units). In this case, the price will be higher (2–3 times), but you can find the exact product that will be in demand in Kazakhstan and help your business take off.

How to Find a Direct Supplier from China?

Before buying products directly from a Chinese manufacturer, you need to find a responsible and reliable supplier who offers the best terms. Where can you find suppliers?

1. On Online Platforms

This option is the fastest and most convenient. Additionally, it requires no expenses.

How? You visit a website, study prices and assortments, and choose a supplier. Popular platforms include Alibaba.com and Taobao. The former operates in English, and the latter in Chinese. If you don’t speak either language, no worries—an online translator can suffice for introductory purposes. Of course, when you move on to business communication, you'll need to hire a translator.

Other sites include the English-language GlobalSources.com and Made-in-China.com, and the Chinese-language Gongchang.com and 1688.

You can write directly to a potential partner or fill out a request form with your product requirements,
delivery timelines, and more. With the latter option, don’t expect quick results.

Who is this for? Despite its simplicity and convenience, this method is not for all entrepreneurs: it’s better suited for major players who order large batches of goods from China. Most offers posted online come from manufacturers and wholesalers, meaning you should be prepared for significant volumes (at least a 30-ton sea container).

What are the nuances? There’s always a risk that the supplier's website contains inaccurate information about the availability or price of goods. You'll need to verify everything—by phone, email, or messengers, which can slow the process.

2. At Trade Shows

How? You visit professional exhibitions, select the products you like, and choose a seller.

The largest trade and industrial exhibition in China is the Canton Fair in Guangzhou.
It is held twice a year and allows you to meet thousands of suppliers and traders. Almost every industrial region of China also hosts its own specialized exhibitions (furniture, electronics, stationery, etc.). Some Chinese export exhibitions are held in other countries (e.g., in Russia).

Who is this for? This option is for those who prefer traditional methods, where you can meet potential partners in person and assess the product quality firsthand.

What are the nuances? Traveling to another country requires significant financial and time investment, which must be considered.

3. Through Intermediary Companies

How? You delegate the task of finding a Chinese supplier to an outsourcing company that provides such services.

Who is this for? This method suits business people who cannot or do not want to engage in non-core activities and want to save time.

What are the nuances? Of course, intermediary services are not free (the minimum rate is 5% of the deal amount), but they usually offer comprehensive services. The intermediary will not only find a supplier that meets your requirements but also verify them, develop logistics plans, and prepare the legal framework.

How to Ensure Your Partner is Trustworthy?

No matter how good a potential partner's offer looks, you should never take anyone's word for it. There's always a risk of dealing with scammers who disappear after receiving the payment. The risk is even higher if you’re a new entrepreneur unfamiliar with the red flags. Therefore, don’t skip the important step of verifying your counterparty. Here's what you need to do: 

1. Verify Legal Entity Information

Ask the supplier to provide documents: a certificate of company registration, an export license, and a tax registration certificate.

It’s important not only to review the documents but also to verify the accuracy of the information. To do this, you need to register on the Qixin platform. Note that you'll need a Chinese phone number for this.

2. Ensure the Production Facility Exists

This is essential for entrepreneurs aiming for long-term cooperation with manufacturers, usually with a factory.

How do you verify if the factory is operational?
Visit it yourself or order a checking service from a logistics company with a branch in China. An inspector from the company will visit the factory, analyze the situation, and prepare a report for you.
These services are not free: expect to pay at least $300.

You can also conduct an online check using the Baidu service. You need to enter the address and study the area using satellite images. If the map shows residential buildings instead of a factory, the deception is evident.

3. Check Customer Reviews

You can read reviews on online platforms or search for them using a search engine. Here’s a tip: enter the company name and the word "Scam" in the search engine.

However, if a company has no reviews, that’s a reason to question whether the supplier is legitimate.

4. Evaluate Product Quality

No one wants to buy low-quality products. Therefore, it's essential to check the product quality.

You can ask the seller to send you samples. Another option is to produce a trial batch. Keep in mind that a test batch typically costs at least $1,000.

Finalizing the Contract

So, you’ve chosen and vetted the supplier, and the order details have been clarified. Now, it’s time to sign the contract. When working with Chinese sellers, an external economic contract (EEC) is signed. The document is drafted in two languages—this can be Russian and English or Russian and Chinese. You should discuss this detail with your partner in advance.

Chinese businessmen are very meticulous about documents: whatever is specified in the contract must be fulfilled. Therefore, it's important to include all details in the document—deadlines, payment terms, product requirements, packaging and delivery conditions, penalties, and so on.

It’s best to avoid full prepayment—this format is only possible with maximum trust between partners. For example, if you fully pay for an order and the batch turns out to be defective, you will face issues that will primarily affect your business.

The contract can be signed not only for a single delivery but also for a year. This will protect you from price increases (for instance, if the first batch was sold to you at a low price, but later the supplier wants to raise the price).

Note that if the contract amount exceeds $50,000, you must obtain a registration number (RN) for the contract from the bank. An RN is also required if the contract amount is not specified.

Bank CenterCredit – Your Assistant in Doing Business with China

Bank CenterCredit offers a range of services for external economic activities. Each corporate client is assigned a personal manager who will advise you at every stage of the deal. Our advantages include competitive tariffs for business client services, online contract registration, and contract review before signing. We work with the SWIFT GPI Tracker service, which allows you to track foreign currency payments online and ensures high-speed transactions.

Additionally, we offer tools that enable effective work with Chinese suppliers. For example, you can open a yuan deposit in Bank CenterCredit—either "Term" or "Accumulation+." A yuan deposit in Kazakhstan allows you to accumulate funds in China’s national currency, minimizing risks associated with currency fluctuations. The deposit can be opened for a period from 1 day to 12 months ("Term") or 36 months ("Accumulation+"). Fund placement is available online—24/7 through the BCC Business app.

For more details, you can call 605, email info@bcc.kz, or contact us via WhatsApp or Telegram.

This article has been translated from its original language using neural network-based translation technology.