Best China Sourcing company
That Drives Profit Growth
Today I’m going to show you the best 20 Chinese trading companies that get:
Trading company basic
When you should buy from a Chinese trading company
How to differentiate the trading company or factory
Tips you should know
Let’s get in.
Chapter #1 Chinese trading company basics
The Chinese markets allow many firms a great place to build and start their business. Many buyers in China spend at least $1 million per year. It is also why you can see that there are many choices buyers can choose from when buying from China.
Most of the time, you can meet these three types of Chinese trading companies:
- Trading Companies
- Sourcing Companies
However, many experts and courses tell you to stay away from Chinese trading companies, mainly if you’re a start-up. It is risky since they can lower your profit by putting high fees. The thing is, there are always two sides to the coin. Remember, what works for you won’t work for others. There are also pros that a Chinese trading company will discuss as we go through the content.
What is a Chinese trading company?
A Chinese trading company is a firm that links buyers and sellers in either the same places or outside the country. Not only that, but they serve as a go-between to many—for example, mediators to the factory, seller, buyer, and wholesaler.
They have a vast knowledge of the Chinese market. Even how these companies mastered the import and export norms, laws, and procedures—makes them capable partners.
Most trading companies have ties with factories, and they buy products from them. They don’t manufacture their own products. Instead, they build this relationship to help boost their sales. It is why they can offer customers to buy products in various categories. Their prices are higher than the manufacturers because of the charges included when buying them.
Why is it best to buy from a Chinese trading company?
As noted above, many don’t recommend buying from a Chinese trading company. But, there are advantages that you can get too when you get the services from them. So, here are the China trading tips and reasons for buying in a Chinese trading company, such as:
These Chinese trading companies value you
Customers play a big part in the success of their trading business. They are more responsive to you than factories. They pay attention to your demands, needs, and requirements. So you can expect immense care as a customer of these trading companies.
For this reason, they have a clear grasp of what they can offer you. For example, how both of you can meet at the product, plan your wants, and how they can help you with your business.
Have reasonable prices
Though we mentioned how products from a Chinese trading company are costly, you can still get them for a lower price. There are many trading companies in the Chinese market, like a lot, so competition has been intense.
They will try to offer reasonable rates to better stand in the customers’ eyes. Most of these companies engage with high-quality factories and offer competitive prices. Hence, it is a win-win situation.
Have flexible MOQ
You can expect a large minimum order quantity (MOQ) when you order from factories. They require this MOQ since the overall cost will be high if they create one product and a few pieces. If they set the quantity too low, it will not benefit their business. The rates are not also attainable for small businesses and start-ups.
On the other hand, a Chinese trading company is open to any order quantities. As long as the products are on their scope, they can cater to your needs. If you are interested in buying lower MOQs, trading companies are for you. You can also contact these trading companies to know more about their MOQs.
Many trading companies promote and market the products they sell. It is important to them since they can show the customers the products and services. Customers can also benefit from this added marketing exposure.
How to know which is a Chinese trading company from a factory?
A China trading company and a factory are different in form and how they play a role in the customers’ business. Hence, let’s compare them both:
Chinese trading Companies act as a go-between the seller or supplier and the buyer. They don’t make their own products. Instead, they buy them from a factory and wholesaler. For this reason, it allows the customers to purchase many products of different kinds. You can find trading companies everywhere, for instance, in Alibaba. They have many Chinese trading post products, labels, and company details, including their business type.
On the other hand, a factory is a place where they make and create all the products. They make products based on what industries they are into. For example, a bag manufacturer will only make and sell products in the bag categories.
Chapter #2 What are the types of Chinese trading company
There are many Chinese trading companies in China that you can choose based on how they can benefit your business. Each has its pros and cons. Based on the post of Jing Zhu, there is an idea that it is better to make a deal with a factory instead of a trading company because of prices. However, most of those ideas come with personal biases and are not always accurate according to a business situation.
So, this chapter will discuss the trading company list in various types, which you will meet and what buying from multiple sorts of Chinese trade organizations can help you.
A traditional trading company
This type of trading company has been running its business for so long. In which they adapted and rooted to the Chinese market and culture. They also have a steady firm, experienced personnel, and a big supply chain.
You can get a better deal when you work with a traditional trading company most of the time. Since they know how business works, they can find suppliers and factories with high-quality products at a lower price.
- They are well-versed with the legal procedure, the Chinese market, and guidelines.
- They do not produce the products they sell.
- Their prices are high.
- Their supply chain is not transparent.
Hong Kong Trading Companies
This type of trading company deals with a wide range of products. At the same time, different agents ran this kind of business. They also handle customers’ orders while selling a brand.
These businesses have a Certificate of Incorporation which means they are legit in operation. They even have import and export licenses. Most HKTC extends their business in Cambodia, Malaysia, and Vietnam.
- They have all the legal records.
- They offer free trade deals.
- Fit to assist international clients.
- Working with them can be pricey.
- Physical presence is needed to open an account.
- It would be best to be wary since many businesses like this are in the market.
This style of a Chinese trading company also deals with a wide range of products. They rely more on the factory resources that are available to them. You can foresee that you will see most of the products in the world as long as they are near the typical grocery-type trade company.
- They have all the legal records.
- They offer free trade deals.
- Fit to assist international clients.
- Working with them can be pricey.
- Physical presence is needed to open an account.
- It would be best to be wary since plenty of businesses is in the market.
Hot-selling (HS) is a Chinese trading company specializing in selling a wide range of popular products. It is why these companies earned the nickname “Hot-Selling.” They are adept at getting these products and selling them in a span of two to three months. They also forgo the products as soon as they are out of demand.
- They have a keen awareness of what’s happening in the market.
- Have lost of popular products and can easily find.
- They invest in marketing, advertising, and promoting their hot-selling products.
- Too concentrated on collecting popular products and getting profit out of them.
- Many present themselves as factories, even when they are a trading company.
- Have no long-term plans.
It is a small trading company often known as a small office. Their company has a limited number of employees. After having a few customers, the former employees formed a SOHO firm to have an income.
- They offer lower prices.
- Since they have a few employees, their teamwork is superb, and their services are outstanding.
- The company sustains its progress because of how hardworking and unified they are.
- Sometimes, they can overlook your needs because of their few employees.
- They focus more on many business options.
A sourcing company is similar to a trading firm. This type of company serves as a link between factories and foreign buyers. They are well-known in China for providing China sourcing services. Some of the services they offer are, they source products and services. They also monitor, ship your products, and perform quality checks.
- Can locate legit and loyal suppliers in any sector.
- They can offer better deals and meet the demands and needs of customers.
- They have the experience.
- Getting services from them can be pricey.
Combined Manufacturer & Trading Company
This type of company offers their services as a factory and a trading company. They utilize their resources to make products them sell them.
- Have a more solid customer retention strategy.
- Aside from the core products, they also have variable products, which adds to the cost.
Factory Group Trading Companies
These types of companies consist of factories and manufacturers. They come together and build a larger company that can offer customers better services and top-notch products. Since they are now a company, they can trade and operate in one.
- They sell their products as one, so buyers have many options to choose from.
- The seller and buyer can set negotiations and deals upon agreement.
- You can choose to either high or low can be decided based on the mutual agreement too.
Chapter #3 China trading tips that you should know
This chapter will discuss the China trading tips that you should know before deciding on a Chinese trading company.
China trading companies never told quality issues to costumers
Many firms, importers, and foreign buyers buy their products from a Chinese trading company. It is why trading companies can’t afford foreign clients to be unhappy and not satisfied. If they lose them, they can suffer a loss of profits. So, they tend to be quiet, especially with the product quality, not to alarm the clients.
Chinese trading companies are aware of what problems they might face. However, some of them do not inspect their partner factories. They even lie about communication and production. In this case, you need to be sure about the Chinese trading company you will choose.
The control over the factory is not on the Chinese trading companies
As mentioned, there are Chinese trading companies that front as a factory. In fact, 90% of suppliers and factories in B2B platforms is trading company. These companies only buy from factories, or sometimes they own stock in the factories. However, this doesn’t allow them leverage if something goes wrong with the product.
Most Chinese trading companies tend to work with a poor rate factory
A Chinese trading company must keep getting profits to run its business. Their business aims to increase their sales and offer a competitive retail price. They also ensure that their customers and suppliers or factories are not dealing with each other. Most of the time, they are in precarious condition.
Including in these precarious acts is working with a disorganized factory with a lack of quality and offering lower prices. They will never disclose the state of the factory they are partnering with.
Chapter #4 The twenty best Chinese trading company list
There are hundreds of Chinese export companies and sourcing firms to work within China. It is why we combine a trading company list with all the best Chinese companies.
The first on our trading company list is JUSTCHINAIT. It was founded in 2010 and became one of China’s top 1 sourcing companies. JUSTCHINAIT JUSTCHINAIT has been sourcing products and dealing with suppliers every day. With over 11 years of experience, their services and knowledge are a big help for clients to have profits.
They have 100,000 successful China sourcing projects and over 78% of the repeated purchase rate. Their 300+ testimonials and feedback can attest to how transparent their works are. You can be sure that they value you as a customer. Whatever your needs are, their professional experts can cater to them.
Are you looking for a fast-driven company that can help your profit growth? JUSTCHINAIT is a place for that. Not only do they offer services, such as:
- Made in China Services
- China Sourcing Services
- Chinese Wholesale Services
- China Warehouse Services
- Chinese Shipping Services
- Price Comparison Services
- Consolidated Shipping Services
They also have various companies to help you achieve your goals and have a successful sourcing experience in China.
Yiwu Trading Company
Yiwu is a Chinese trading company based in the United Kingdom. Their main offices are in Yiwu, China, and Ate Gateshead (Northern England). Their main goal is to assist clients in locating products, negotiating prices, and shipping them to their locations. They also assist businesses in importing unique and precious products from China. Whether you have a small or big company, their skilled experts can help you with your needs.
Nanjing Maxfit Trading Company Ltd
In 2016, Maxfit Tradingbegan its operation of importing and exporting. They intend to provide services that benefit them and their clients. It means they help their foreign clients grow their market and connect them with a trusted supplier or factory. They also help Chinese factories sell their products in global markets. It is why they deal with a wide range of products domestically and internationally.
Young & Young Trading Company
So far in this trading company list, Young & Young are among the oldest that served Asian customers and foreign buyers. With over 53 years of experience, they specialize in wholesale importation and distribution to any Asian market and Canada. They mainly focus on food imports, and they have 800 diverse products. Their clients are food wholesalers, food producers, and food service centers.
Soto imports is a Chinese trading company that offers import and export services. You can also get services like custom brokers, shipping sources, and buying agents. They offer these services to clients worldwide, so you can expect that they can ship anywhere. Plus, they are good at explaining demands and strategies to the clients to meet their needs.
Tai Yick Trading Company
For more than 50 years, Tai Yick, a family-owned company, has been an expert in importing beautiful ceramic sculptures from many places. For instance, in areas from Mainland China and Shiwan.
They have good customer service and fast delivery. You can expect your items within 5-7 days. If the products arrived in bad condition or damaged, you can return them within ten days.
Xiamen ITG Group
This company is also among the oldest in this trading company list. Xiamen is a branch of ITG Company, created in 1980. They are experts in the trading field, including real estate, finances, and supply chain operations. It is why they made their rank China’s top 100 corporations.
Nexfar Trading company
Nexfar trading is a leading company expert in importing and exporting based in Zhejiang. Compared to the rest of the trading companies in this list, this company only focuses on the pharmaceutical business. So, they offer their services to businesses in this field.
Some of the services include finding products like medicines and getting these materials. They also assist starting businesses in finding these industry trends.
Beijing Chaopi Trading Company
In 1987, Commercial & Trading Co. Beijing CP. Ltd started their business with 500 million yuan. It is why they have the largest distribution network among all the companies in this trading company list. With 20,000 stores in and out of Beijing, their business became open to all. They serve as the agent for clients like shopping malls, warehouse clubs, e-commerce, and more. They also provide all products in services you need in China. On top of that, they have advanced transportation and technology.
Orient International Enterprise Ltd
In 1987, Orient International Enterprise Ltd founded their business too. They are among the biggest Chinese export companies in the field of textile. However, they also aid in services like medicine, transportation, garment, declaration of customs, international shipping agency, and more. Their company focuses on international trade, but they are now open to domestic ones.
Zhejiang Willing Foreign Trading Company Limited
Zhejiang Willing Foreign Trading Company founded their business in July 1999. With a capital of 27.581 million Yuan, they started their business and rose to be a top company. They are well-known around the world for being among the trusted Chinese trading company. There is no doubt that they earned this title because of the quality service, fair partnership, and goal. They have a 2000 product line, which they export to 70 countries and regions.
Cheung’s Trading Company
Cheung’s Trading Company first opened its doors in 1985. They are well-known worldwide because it has many consumers from all over the world. They sell products related to medicinal and nutritional supplements, such as:
- Herbal teas
- Food products
- Weight reduction tea
Zhejiang Native Produce & Animal By-Products I/E Group Co. Ltd
Zhejiang Native Produce & Animal By-Products I/E Group Co. Ltd is among China’s largest worldwide commercial groups. They own many branches companies that provide various services. They are also known as a reliable partner providing food products. For example, they offer sweet spices, tea, honey bee products, and more. It is said that Zheijiang has 200 product lines provided to them. When you work with them, you can get many benefits.
Sinergia Trading Company
Sinergia Trading Company is a Chinese trading company founded in 2010. They provide services worldwide, including data management, coaching and translating, shipping, and more. They operate in several countries and assist clients from Europe, Latin America, and the UK.
MrSourcing has been working with different clients worldwide for the past five years. Their main client locations are North and South America, Europe, and Oceana. Some of the products they focus on are the following:
- Shower chambers
- Lit and non-lighted magnifying mirrors
- Ceramic products
- Machine parts
- Pans and toilets
In 2014, Chinabrands started their company and became a known drop-shipping brand. They offer services that include shipping, sourcing, and product needs. Most of the time, they work with brands like Lazada, Wish, Amazon, AliExpress, and more. You can get many benefits too, such as bulk prices with no limits on the order quantity. You can also get discount points and exclusive lists of factories.
EL-Hashem Trading Group Co. Ltd
In November 2009, El-Hashem founded their business as a sole company in Hong Kong. They are a top company that ensures that the products are quality and pass the QC test. They are most well-known for providing import and export products in the field of Chinese medicines and machines.
Dong Sourcing Trading company
Dong Sourcing is among the best Chinese trading company that presents a one-stop service for all. They sell various kinds of products and offer services to at most 3000 customers all over the world. At the same time, they have low-cost prices, business talk, QC checks. With their knowledge and expertise around this field, they assist their clients in building business in China.
Leelinesourcing is also one of the top companies in this Chinese trading company list. They started their company in 2012, and in 10 years, they became among the top 1 sourcing company in China. Their goals include:
- Assisting clients in finding factories
- Offering fair prices
- Keeping a high rate of products
EJET Sourcing Company
EJET Sourcing Ltd is a sourcing firm based in China. The China sourcing company is a reputable company that matches clients to a trustworthy factory. They are keen on details and make sure their services are top-notch. EJET Sourcing Ltd also provides high-quality products and cost-effective prices to their clients.
Chapter #4 Where to find the best Chinese trading company
Today, you can get data everywhere—it’s now simple, easy, and free. It is the same with getting details about China trading tips and where to source a Chinese trading company, online or on-site. So, in this chapter, we’ll introduce some of the best ways to find a Chinese trading company in many ways.
Search in the internet
The internet is the most practical way to find trading companies. Most of these Chinese trading companies use websites to put all details about their services and how they can help the clients. So what you can do is input keywords and searches on Google, Yahoo Search, or Bing.
For example, you can put keywords like a “Chinese trading company” or a “Chinese sourcing company,” and there are lists that will appear. Among them is JUSTCHINAIT.
Through trade shows
Trade fairs become more important as China’s economy grows and its market improves. According to Kelly Pang, there are hundreds of businesses around the world that attend this fair. The same way to how many factories, suppliers, and companies from China. There are many trades shows that you can go to.
Here are the top five options that are best and most influential.
- The Canton Fair (China Import and Export Fair)
- The Yiwu Commodities Fair
- Beijing International Auto Show
- Bauma China 2022
- East China Import and Export Commodity Fair (ECF)
B2B Platforms and Sourcing Company
There are many B2B platforms that you can use anywhere and wherever you are. It is one of the best places—all in one, where you can find trading companies, suppliers, and factories in various niches. Here are the top five global B2B platforms that you can consider:
- Amazon Business
- Rakuten Marketplace
- Global Sources
Sourcing companies like JUSTCHINAIT can also provide you with a list of the best Chinese trading company. With their experience and expertise, they know the best way to help you.
Magazines and newspapers
Many trading companies use magazines, newspapers, even newsletters to promote their services. Their details like contact number, website links, and address are added to their advertisement. Sometimes, you can refer to the Chinese trading post these sources put up.
Suppose you know businesses, clients, and the previous customers of the trading company you chose. In that case, you can ask for details from them. It is the most accurate way to hear about the feedback and how this company works.
Chapter #5 How to choose the Chinese trading company suited for your business?
Most companies vow to be better than others, even when they aren’t. It is up to you to figure out which is best for your company among these trading companies.
Here are some of the guides on checking and thinking about before picking a Chinese trading company.
ISO certification indicates whether the company adheres to Worldwide Organization for Standardization (ISO). If the company is certified, it is a good sign. However, you should verify the document to see if it’s legit.
License to do business
The legit and trustworthy company should have a legal business license with them. You can ask for these documents, including the prizes they won.
Amount of revenue
It is ideal to choose a Chinese trading company with a large capital because they are stable and strong. You should also see their profit returns.
Chapter #6 The Downsides of Using a Trading Firm
Problems with the rate of the products
Trading companies buy from many factories rather than creating them. They tend to work with factories that offer cheaper prices overlooking the quality and the standards. As a result, you can face product quality or service issues. What’s worse is that some trading companies hide this fact not to lose the customers’ trust.
Not an expert in a single field
As we’ve mentioned, Chinese trading companies only buy products. You can expect to see diverse products when they source them from various factories. It is also why they can become too focused on a wide range of products without having a single field or specific product.
They aren’t as close to the factories
Because trading companies value their customers over their profits, they make sure to source the best products. Hence, they have little control over the factories. They have no contract with the factories, so they will be liable to their customers when something goes wrong.
Conflict of Interest
Conflict of interest occurs when the trading company prefers to work with poor rate factories. They are also likely to work with a small factory that cannot reach international clients. They take advantage of the profits these factories offer and their shortcomings.
Rising Business Cost
One of the reasons why clients work with Chinese companies is the cost. However, as the market grew and businesses prospered, China’s wages increased. Based on Business Markets, many companies raised their wages by 5 to 10% in the latest year.
Chapter #7 FAQs about best Chinese companies you can find
Is it less pricey to hire a trading company in China?
Even the minimum wage and working conditions improved through the years, China’s production cost remained lower. Even the wages and services are lower too. It is why hiring a trading company can increase profit and cut expenses. However, this may not be true for everyone based on their company and business needs.
Do trading companies have less order quantity (MOQs)?
Trading companies can cater to any MOQ, even the small ones ranging from 50-100. However, the downside is, it is pricey compared to higher MOQ.
Compared to buying in factories, they set MOQ because they will make large production all at once. They also have several production facilities and workers they need to fend.
How can you know if a Chinese trading company is legit?
There are many ways for you to know if the trading company you’re dealing with is legit. And as mentioned above, you can check their documents and papers. Verify them from the Chinese government and experts. You can also see the reviews, feedback, and ratings they have.
What are the problems that you might face with a trading company?
One of the problems you may experience with trading companies is product compliance issues. However, you can deal with these problems using the following:
- Determine the tariff classes.
- Before choosing which Chinese trading company to work with, you should consider screening their demographics.
- Together with customs management, you can receive ITAR-controlled products.
What are the top Chinese export companies that you can check out?
Based on the World’s Top Exports, about 150 Chinese companies are listed in the Forbes Global 2000. Some of the Chinese export companies they noted are:
Oil & Gas
- Sinopec-China Petroleum
Cars & Trucks
- Dongfeng Motor Group
- SAIC Motor
- Gree Electric Appliances
- Midea Group Co. Ltd.
- Tsingtao Brewery
Pills and Medicines
- Sinopharm Group
- Aluminum Corporation of China
- Dongfang Electric