China - Selling and buying
Reaching the consumers
Also, advertizing promotions in China frequently directs groups rather than individuals. Today, the single child generation wants to live a very good life and thus spend (education, luxury items, consumption goods), especially in large cities. The consumption is often ostentatious as witnessed by the explosion in the number of luxury cars in the Peoples' Republic of China, as the Chinese social recognition and thus membership of a group. Mainly due to the need for conformity with the reference group, there are hardly any individuals ready to run the social risk of being "different" as compared to their reference group. Contrarily, once a product is adopted by the reference group, the passion is extremely rapid and to a wider extent.
The Chinese consumer is very brand sensitive. Chinese consumers feel that price is an indicator of the quality of a product. Price and sale service are the most important selection criteria. On the other hand, aspects such as guarantee, possibility of product refunds are less important. Generally, the Chinese attach great importance to information research on a product, before purchasing it. The independent information source is the word of mouth. Chinese consumers are eager to find out what is available, particularly as regards foreign products. They are very curious about foreign products but still prefer domestic products.
In the rural areas, traditional trade is still significant because foreign firms have not yet established there.
Market access procedures
Bilateral Treaties and Accords.
AFTA and ASEAN - China Free Trade Area.
Consult the Free Trade Agreement signed by China.
More than half of value imports of China is subject to import licenses. Initial authorization is issued by various organizations according to the product, but the final delivery is subject to acceptance by the MOFTEC. To obtain these authorizations, the importer must have exact foreign exchange reserves and justify the necessity to import. Delivery of licenses often depends on the sphere of activity, which may be encouraged, allowed, restricted or simply prohibited, according to the investments regulation promulgated by China. It is essential in all cases to have solids relations within the Chinese Administration for obtaining these licenses.
Many goods imported into China are subject to inspection. Prior inspection in the exporting country for certain products (textile in particular), or inspection at the port or the incoming airport to check that the products are well in conformity with the Chinese standards. These checks are carried out directly and exclusively by the Chinese authorities.
Consult customs duties of various products by clicking here.
The declaration can be done via the customs site, by indicating the place of arrival of the goods, as well as all the customs data. Once the data is analyzed by the customs, a receipt will be sent, so that the company can complete the cargo of the goods. Custom duties is then paid by bank transfer.
Documents to be presented to customs vary according to the products. However there are standard documents to be presented: the bill of lading, the invoice, the packing list, the customs declaration, the insurance policy, the sale contract or the inspection certificate of the AQSIQ (General Administration of the PRC for Quality Supervision, Inspection, and Quarantine) or other licenses of safety and quality.
Since 1 October 2012, all exporters of food products to China must be registered with the AQSIQ.
Organizing goods transport
Goods transport by road represents approximately 12 billion tons of freight. Road transport accounts for 13% of cargo in China.
Air transport represents approximately 2.2 million tons of freight of merchandises. China currently has 180 civil aviation airports, including the world's second busiest in Beijing.
Railroads are the principal mode of transport and the cheapest solution for long distance freight. Each year, railroads provide the transport of 1,500 billion tons kilometers of goods. By the end of 2011, China had a total of 91,000 kilometers of railway, which is utilized to meet freight and passenger demand, ranking second in the world in terms of length. Freight volume reached 3.6 billion tons in 2010, 300 million tons more than in 2009.
Domestic business directories
- National council of light industry (CNLIC)
- Chinese Association of the renewable energies industry(CREIA)
- Chinese Association of leather industry
- Chinese Association of pharmaceutical industry (CIPA)
- International Association of Chinese Automobile Manufacturers (CAMAI)
- Chinese national council of textile and clothing
- Chamber of commerce for import and export of light industrial products and arts and crafts (CCCLA)
- Chamber of commerce for import and export of minerals, metals and chemical products (CCCMC)
- Chamber of commerce for import and export of food products, country products and animal products (CFNA)
- Chamber of commerce for import and export of textiles (CCCT)