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Types of “Manufacturers” in China

When dealing with overseas manufacturing, you will encounter the following players: trading companies/importers, buying agents, sourcing agents, representatives, wholesalers and factories.

Let us dive into the different types of suppliers and what differentiates them:

1. Trading Companies/Importers

There are two types of trading companies: the low value-added versus the high value-added trading companies. They typically make money by adding a margin to the cost of the actual production costs, and usually deal with a wider array of product categories. Trading companies have local China offices with a team of project managers that can be helpful depending on the complexity of your product. In addition, they may have great relationships with factories and help with communication in Chinese.
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