One of the biggest pit falls when buying chemicals from China is contract purchasing, this is when you work out an agreement with a manufacturer and you discuss quality, price, and delivery in return for permanent business. A number of Chinese prefer to do business this way, but it can however lead to difficulties. For instance being tied down to a deal for a certain period of time.
Most Common Pit Falls of Buying Chemicals from China
Lots of chemicals are purchased through spot buying this is where you find a merchant supplier who can deliver without the fuss and complications of a contract. Either these suppliers already have what chemicals you need, or they can make it quickly for you. A supply contract would need to be managed or enforced. For this reason, using a spot supplier would make sense.
Finding a spot supplier in China that you can rely on is problematic. This doesn’t mean that Chinese suppliers aren’t honest. What I can say, however, is looking out a supplier from a list of unknown contacts from one side of the world to the other without checking out a website can be risky. Spot buying has always been risky, but when it is complicated by international transactions, the risk gets bigger.
Different Types Of Pit Falls For Different Type Of Chemicals
There are tens of thousands of chemical producers in China, but most are small and manufacture just one or two products. In the long term, the sector will not be allowed to help that many businesses, making things more difficult. Although in the shorter term, a huge number of businesses have kept the industry very competitive, even though it may not prevent prices for many lower-end products being highly volatile. Foreign companies occupy much of the higher end of the market. In the mid term, and also beyond, they are not likely to see their dominance uplifted to any huge amount because of their power when it comes to services and support — the principal source of added value in the sector. Stronger enforcement of existing environmental and other regulations reflects a growing concern on the part of the government to clean up the industry and improve health and safety standards. Compliance will be more of an issue for domestic companies than for foreign ones, which have built in higher standards from the start. The poor quality of infrastructure and logistics support remains a problem for supply chain management, although there are signs that the railway ministry and other organisations are looking to tackle some of the biggest shortcomings. China offers some potential for specialty chemicals research and development, although the emphasis is more likely to be on the development, application and customisation of products than basic research.