Have you ever thought of starting to import products from China and selling in your local market?

Are you thinking to know which country is most suitable to import products from?

In this Chapter, let us tell you about why you should import from China and have long term business growth. Even since China started the open-door policy in the late 19th century, the Chinese economy has grown tremendously.

Now whenever you talk about international trade, you cannot ignore China.

China has become without any doubt a global economic leader in the world. The country’s economy is ranked #2 in the world after the United States, but China has been the world’s biggest exporter of goods since 2009.

Chinese products are among the most used products in the market and one can find made in china label mentioned on almost 90% of the products. Many foreign companies also used the cheap labor in China and set up assembly plants in China to save their costs.

Chinese products are everywhere. Look around you and you will note that almost all of the products were either made in China or their parts were produced there. There are many reasons why one should import products from China.

In this chapter, we will discuss the top 3 reasons for importing products from China and why it is beneficial for your business.

Table of Content

1) Huge Cost Savings When Importing Products From China

2) Stay Competitive When Import products From China

3) Import Products From China and Expand your Business

4) Misunderstanding of Importing products from China

1) Huge Cost Savings When Importing Products From China

China is called the world factory because of its ability to produce products at competitive prices, cheap labor, economies of scale, tax benefits, efficient supply chains, and modern infrastructure. All of these benefits combined make China’s production of heaven. It is so hard to compete with China is today’s world. Because the ecosystem that has been made in China for manufacturing is very large and unique. It is very hard for other countries to produce goods that can be competitive with the made in China products in term of price.

a. Much cheaper price

One of the biggest advantages China has is its population. China is home to over 1.4 billion people. All led by the spirit of hard work and dedication. This tremendous amount of people provides a huge workforce for manufacturing and makes the job content very competitive. Along with cheap labor, other factors such as government support, modern infrastructure, economical electricity and rent, and a large efficient ecosystem of logistics have played a huge role in helping Chinese suppliers provide competitive prices.

This ensures keeping the labor wage at a minimum which in turn reduces the product’s cost. This makes China a favorable place to import products. It is very hard to produce similar products in any other country at a cost lower than from China.

b. Higher production capacity

Throughout the past years, thousands of factories have established throughout China. Every region in China is specialized in producing a specific kind of products and they are producing in millions of quantities. Due to large-scale manufacturing, the cost of production goes down as the fixed costs remain the same. This makes China heaven for product sourcing. Especially when you need to source large quantities, these factories can surely produce them.

This mass production concept in China has been booming since past years and the government has been in helping these factories to increase their capacities. There is no other country in the world with similar production capacity infrastructure which China has. This makes it a very unique country to work with, when we talk about international trade


c. Tax Benefits

Like many countries, China has a value-added tax system in the country. However, the products made for export are exempt from taxation and the Chinese government will refund the VAT for products that are exported from the country.

All of these tax savings also add up to your profit. Also, the government has provided a lot of subsidies to the local businesses which helps to bring the price of the product down. That is what makes China an attractive market to source your products from.

2) Stay Competitive When Import products From China

The way the Chinese economy has grown in the past few years and along with the government support, Chinese suppliers are able to make high-quality products at very reasonable prices, making it very hard for other countries to compete with the Chinese market.

If your competitors in your local markets are buying from China at a competitive price, you have no choice but to also buy from China. It is hard to find another alternative to China because there is no other country that is able to produce products efficiently and at a competitive price than China.

There may be some countries but they are producing products related to only specific industries. But China is producing almost everything. You will also have to import from China to complete in your local market with the price.

That is the reason that China is now the leading exporting country in the world. Therefore the buyers are left with no choice but to see towards China in order to import products. No matter which business you are related to, China is a major power that cannot be ignored.

3) Import Products From China and Expand your Business

A large economy like China will provide a lot of opportunities and since the whole world is doing business with China, you can have many ways to expand your business. More and more companies are now investing in China because they feel that their investments are safe and secure in China. Let’s see some benefits of investing in China and running a business.

a- More business opportunities

There is a reason why companies like Apple, Tesla, Walmart, Mcdonalds, etc have invested heavily in China. Social, political, and economic stability has helped China to grow consistently for the last three decades.

These three are vital in guaranteeing a healthy business environment. They make the market predictable, so businesses can predict the future and strategize accordingly. China is now the 2nd largest economy in the world, which means huge business opportunities.


No matter which business you are involved in, you cannot ignore China. Many foreigners have opened various businesses in China and have grown their businesses in a few years. Similarly, a lot of foreign companies have directly invested in China.

b. Larger Product Categories to Import

Since China is the largest exporter in the world, it means that you are able to source products from all industries. China has thousands of factories located all around the country producing millions of products.

There is hardly any industry in which the Chinese are not manufacturing products. So rest assured that you will never have difficulty in finding the product that you need to import from China.

c. Access to Emerging Markets

If you produce your goods in China, it can be of great value to you, if you intend to sell these products in the fast-growing markets. China will provide quick access to these markets, especially the Asian markets because of the geographic proximity and well-established logistics and shipping systems combine to deliver significant savings on selling your goods.

4) Misunderstanding of Importing products from China

a) Many people still believe that made in china products will be of a low quality which is totally a wrong perception. China has been producing high-quality products for many years which are being used all around the world.

A lot of new technologies are being manufactured in China. The Chinese factories are able to use more and more advanced toolings and machinery helping them to build better quality products. These products are able to complete in the international markets.

b) There is no innovation in Chinese products. This is another misunderstanding that people have. Many companies in China are investing billions of dollars in research and development and producing new and innovative products.

Many top 500 countries include Chinese companies that are doing amazing innovation all around the world. In fact, in 2020, many Chinese innovations won international awards and were recognized all around the world.

Each year, 1000s of new products are developed in China at a price that is unbeatable by other countries. That is bringing China to the forefront of innovation.

c) Some believe that there will be a lot of communication issues due to language barriers. You will be surprised to know that more and more Chinese are learning English nowadays.


Every supplier will surely have English speaking staff to communicate with the buyers. Also with the technological advancements, there are so many devices that can help you to translate the languages. You can use apps on your mobile phone to help you with translation, you can even translate Chinese characters by using the app and camera.

The standalone translators are also very convenient and include almost every major language spoken. All of this will help you feel more confident that there are no issues in dealing with Chinese suppliers and visiting China when it comes to language.

d) It is also believed by many that buying from China is a hassle due to less trust in Chinese suppliers due to past issues either of getting cheated or not getting the quality they wanted.

They fail to realize that Chinese have been doing businesses all around the world and where it is true in few cases that the quality was not delivered as expected or they were victim to scams, however generally if you perform the right quality control and have a good contract with the supplier in the beginning, you should not have any issue in importing from China.


We can easily conclude that seeing all these factors, it is very difficult for other countries to make similar products cheaper compared to China. There may be some countries which are producing cheaper products in some specific industry.

But overall China still remains the top exporter of the world and even during the Covid-19 pandemic, it has one of the highest GDP growth compared to countries worldwide. This makes China the most favorable place to import products of competitive prices with faster delivery, helping you to grow your business in your country.