DiFFreight Blog Advantages of cooperation with China - why it is profitable

Advantages of cooperation with China - why it is profitable

Advantages of cooperation with China - why it is profitable

China, without a doubt, is one of the key global economic leaders. Today, no one is surprised by the number of products marked with the Made in China label. It seems that Chinese goods are everywhere. In this article, I will tell you why it is profitable to sell goods from China, and what opportunities trade with China opens up for Ukrainian business.

7 advantages of partnership with the Asian giant

1. Massive state support.

I am not surprised that China is among the 10 countries in the world where it is easiest to do business. After all, the Chinese government is actively implementing measures to support local and international entrepreneurs. The authorities provide citizens with subsidies for business, reduce tariffs for water, land, and electricity for factories.

The country's tax and other investment policies are unparalleled in the world. Since 1985, China's export tax refund policy has been in place. On the other hand, China's import tariffs are getting better and better for foreign companies every day.

Low production costs difreight

2. Low production costs.

China is one of the cheapest manufacturers in the world. Chinese factories produce the entire range of products. And they especially developed in the production of low-margin goods: shoes, clothes, electronics. Therefore, I consider it logical that international companies use Chinese production to reduce the prices of their own products, and Ukrainian entrepreneurs diligently sell goods from China in bulk.

3. Access to a large and constantly increasing market.

Already today, China's domestic market is equal in size to the American one and continues to grow. Experts expect that China's GDP will surpass the US's GDP by 2030. If you want to access a progressive market and increase sales, start doing business with China.

China's GDP to surpass that of the US by 2030. difreight

Experts expect China's GDP to surpass that of the US by 2030.

4. Favorable environment and flexible conditions of cooperation.

In China, it is easy to find local business partners and investors who are open to negotiations. I saw that it is not a problem for Ukrainian businessmen to agree with Chinese partners on flexible terms of supply and pricing.

5. Technology and the spirit of innovation.

It will not be news if I say that China has become the birthplace of many of the fastest startups. Just think of the global success of the Chinese giants Baidu, Tencent and Alibaba.

China is years ahead of global markets in product innovation, digital technology and retail. Even Taiwan or Malaysia look like the stone age when it comes to the Chinese spirit of innovation. This also applies to the ease of carrying out transactions in everyday life, which facilitates the sale of goods and services in China.

Shanghai in 1989 and today. difreight

Shanghai in 1989 and today.

6. Extensive business ecosystem.

Did you know that industrial production in China does not work in isolation, but relies on networks of suppliers, component manufacturers, distributors, government agencies and customers?

Imagine that you will work with a technological giant, where all the processes of the production ecosystem are set to automation. A good broker will provide you with warehouse services in China for convenient logistics.

7. Fast delivery.

Ports and road transport in China are almost perfect. Delivery from China to Ukraine is established and works without any problems. Therefore, it is extremely convenient to import from China and export goods.

Delivery of goods from China to Ukraine
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A safe way to start business with China in Ukraine

I tried to show the most obvious advantages of doing business with China. I believe that now is really the best time to enter this market and expand the business.

Wholesale cooperation with China

When you order large batches, prices go down. Buying wholesale is much more profitable — for that, turn to B2B marketplaces like Taobao, 1688.com, Made-in-China, and others. DiFFreight offers not only seller reliability checks but also product purchasing for your business.

China’s production capacity can meet wholesale needs of any scale. You’ll also be pleased with the technological capabilities, especially if you want to manufacture a product with your own design or under your own brand. No other country offers cheaper deals.

How to start working with China effectively and avoid mistakes

We recommend exploring useful articles on the DiFFreight blog — you’ll learn more about how procurement and reselling of Chinese goods works, which marketplace to choose, and which delivery methods are the cheapest and most reliable. Keep in mind that China has its own business etiquette and cultural specifics — a reliable agent will be essential. Teamwork will help you start trading successfully right from the beginning without making avoidable mistakes.

How cooperation with China impacts business development

The process of working with China is simple but brings many benefits for any kind of business:

  • Reduced costs for purchasing and manufacturing products.
  • Access to a developed production ecosystem for nearly any kind of product.
  • Easy scalability as demand grows — a vast selection of suppliers and factories.
  • Product diversification and innovation: access to new product ideas, technologies, and manufacturing innovations.

The more attractive your product is to customers, the better it is for your business’s profitability. That’s the most important reason to start working with China.

But before dedicating yourself to this country, you need to understand the legislative nuances and operational complexities. DiFFreight can become your main partner in this. We will solve all the cultural and legal problems in working with China for the rapid growth of your business.

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