2025 Southeast Asia Companies' Guide to Procurement in China

I. Preparations Before Coming to China​

Clarifying Procurement Goals and Budget​

• Precisely positioning procurement needs: Comprehensively sort out the company's own business needs, and clarify the type, specifications, quality standards, quantity, and expected delivery time of the required procurement goods. For example, an Indonesian electronics distributor planning to purchase smartphones needs to specifically determine the model, configuration (such as processor model, memory size, camera pixels, etc.), appearance requirements (color, size), as well as the expected quantity of one-time purchase and the frequency of subsequent replenishments.​

• Formulating a budget based on market and financial conditions: Conduct in-depth research on the price trends of target commodities in the international market, refer to past procurement data, and combine the company's current financial status and capital planning to formulate a reasonable and flexible procurement budget. Take a Vietnamese garment manufacturing enterprise purchasing fabrics as an example. Not only the unit price of fabrics but also transportation costs, tariffs, potential exchange rate fluctuation costs, etc., should be included in the budget considerations.​

Visa Application​

• Applicable situation of business visa (M visa): Applicable to enterprise personnel coming to China for business negotiations, procurement, participation in exhibitions and other business activities.​

• Required materials:​

• Original passport with a validity period of more than 6 months and a copy of the first page.​

• truthfully filled and printed Chinese visa application form to ensure accurate information.​

• Recent 2-inch bareheaded color photos with a white background, clear photos and complete faces.​

• An invitation letter issued by a Chinese enterprise or institution, specifying the invitee's information, purpose of visit, itinerary in China, and the party responsible for expenses. For example, a Thai enterprise coming to China to purchase agricultural products will receive an invitation letter from a Chinese agricultural product supplier, indicating that the purchaser will visit the farm, negotiate cooperation, and sign contracts.​

• Proof of business cooperation, such as a signed letter of intent, confirmation letter for participation in the exhibition issued by the exhibition organizer, etc.​

  Application process:​

• Log in to the official website of the Chinese Visa Application Service Center online, fill in the visa application form and make an appointment for the time to submit materials.​

• Go to the Chinese embassy or consulate or visa application center in Southeast Asian countries at the appointed time to submit application materials. In some regions, fingerprint collection may be required.​

• Pay the visa application fee, the amount of which depends on the type of visa and the duration of stay.​

• Wait for visa approval. Under normal circumstances, the review time is 4-5 working days. If expedited service is needed, you can choose the expedited service of 2-3 working days, but you need to pay an additional expedited fee.​

2. Market Research​

• Understanding China's industrial distribution: Different regions in China have their own expertise in industries. For example, Shenzhen and Dongguan in Guangdong are highly developed in the electronic information industry, gathering numerous manufacturers of mobile phones, computers and electronic components; Yiwu in Zhejiang is a world-famous distribution center for small commodities, covering various daily necessities, ornaments, toys, etc.; Suzhou in Jiangsu has significant advantages in precision machinery manufacturing and textile and garment fields. Gain an in-depth understanding of the main agglomeration areas of various industries through industry reports, government industrial planning documents, professional exhibition information and other channels.​

• Analyzing industry trends and competitive situation: Pay attention to the development trends of the target industry in China, including technological innovation directions, changes in policies and regulations, and market demand dynamics. For example, with the increasingly strict environmental protection policies, green and environmentally friendly products have become the mainstream trend in the home building materials industry. At the same time, study the procurement strategies of competitors, analyze their supplier selection, procurement prices, product quality and other aspects to gain an advantage in procurement.​

• Online platform research: Make full use of B2B e-commerce platforms, such as Alibaba International Station, Made-in-China, etc., to search for target products, view supplier information, product details, customer reviews, etc., initially screen out a number of potential suppliers, and understand the market price range. In addition, industry forums are also important channels for obtaining information, where you can communicate experiences with peers and learn about some industry insiders and potential supplier clues.​

3. Finding Suppliers Through Multiple Channels​

• Participating in exhibitions: Actively participate in various industry exhibitions held in China, such as the Canton Fair (China Import and Export Fair), China International Import Expo, Shenzhen International Electronics Fair, etc. These exhibitions gather high-quality suppliers from all over the country, enabling you to intuitively understand the actual products, communicate face-to-face with suppliers, and establish preliminary cooperation intentions. For example, a Malaysian furniture enterprise communicated with many Chinese furniture manufacturers at the Canton Fair and obtained a large number of product samples and enterprise materials.​

• Using B2B platforms: Register enterprise accounts on well-known B2B platforms, release detailed procurement needs, and attract suppliers to take the initiative to contact. At the same time, accurately screen qualified suppliers through the platform's search function. On Alibaba International Station, you can filter according to region, product category, supplier credit rating and other conditions, and also view the supplier's store rating, transaction records and other information.​

• Recommendation from industry associations: Contact relevant industry associations in China, such as the China National Textile and Apparel Council, China Machinery Industry Federation, etc., to consult and recommend high-quality suppliers. Industry associations have a good understanding of enterprises in the industry, and the suppliers they recommend usually have a certain reputation and good reputation in the industry.​

• Introduction from peers: Communicate with peer enterprises that have procurement experience in China to obtain reliable suppliers recommended by them. The actual cooperation experience of peers can provide important references for the screening work and reduce the time and cost of finding high-quality suppliers.

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4. Supplier Qualification Audit​

• Verification of basic enterprise information: Through platforms such as the National Enterprise Credit Information Publicity System and Tianyancha, query the supplier's business license, registered capital, business scope, registered address, establishment time and other information to ensure its legal and compliant operation. For example, a Philippine enterprise found that a supplier's business license showed that its business scope did not include the purchased products before procurement, thus avoiding cooperation risks.​

• Evaluation of production capacity: Request suppliers to provide production equipment lists, workshop layout drawings, production capacity data and other materials to understand their production scale and production efficiency. For some large-scale procurement projects, you can conduct on-site inspections of the supplier's factories to observe the advanced level and operation status of production equipment, as well as the proficiency of workers' operations. For example, a Singapore enterprise found that the equipment of a supplier's factory was outdated and the production capacity could not meet its own order demand during an on-site inspection when purchasing clothing, so it gave up cooperation.​

• Review of quality management system certification: Check whether the supplier has relevant quality management system certifications, such as ISO9001 quality management system certification, ISO14001 environmental management system certification, etc. For products in specific industries, attention should also be paid to whether there are industry-specific certifications, such as CE certification for electronic products and medical device registration certificates for medical devices. For example, a Cambodian medical device purchaser took the possession of a medical device registration certificate as a key audit condition when screening suppliers.​

• Investigation of industry reputation: Search for the supplier's enterprise name through the Internet to check for negative news or complaint records. In industry forums and social media groups, ask other purchasers for their evaluations of the supplier. You can also consult the existing customers of the supplier to understand their actual performance in terms of product quality, delivery time, after-sales service, etc.​

5.Sample Evaluation​

• Sample application and testing: Request samples from preliminarily screened suppliers and require them to provide samples for free or for a fee within a specified time. After receiving the samples, conduct comprehensive testing in strict accordance with the enterprise's internal quality standards and testing procedures. For electronic products, it is necessary to test their performance, stability, compatibility, etc.; for food, it is necessary to test their taste, nutritional components, hygiene indicators, etc. For example, a Thai food enterprise purchasing Chinese seasonings conducted taste tests, microbial index tests and packaging tightness tests on the samples.​

• Sample comparison and analysis: Conduct a horizontal comparison of samples from multiple suppliers, and comprehensively evaluate from the aspects of product quality, appearance design, packaging, etc., to find out the advantages and disadvantages of each supplier's samples. For example, an Indonesian clothing purchaser, when comparing clothing samples provided by different suppliers, found that some suppliers had better fabric texture and some had more exquisite workmanship. The comparison provided a basis for subsequent negotiations and decision-making.​

• Communication on sample improvement: If there are some aspects of the sample that do not meet the requirements, communicate with the supplier in a timely manner, put forward specific improvement suggestions and the expected improvement time. Observe the supplier's response speed to problems and ability to solve problems, which is also an important aspect of evaluating the supplier's service level. For example, after receiving the samples, a Vietnamese gift purchaser found that the packaging design was not exquisite enough. After communicating with the supplier, the supplier quickly adjusted the design scheme and provided new samples, showing a good service attitude.​

6.Formulation of Contract Terms​

• Clarification of basic product information: Clearly list the product name, specification model, quantity, quality standard and other information in the contract to ensure that both parties have a consistent understanding of the purchased products. For complex products, product drawings, technical specification documents, etc. can be attached as contract appendices. For example, a Malaysian enterprise purchasing Chinese mechanical equipment specified various technical parameters, component configurations and implemented quality standards of the equipment in the contract.​

• Agreement on price and payment method: Determine the unit price and total price of the goods, and clarify whether the price includes other fees such as freight, insurance, and taxes. Common payment methods include T/T (telegraphic transfer), such as 30% advance payment and 70% payment after the goods are accepted; L/C (letter of credit) payment, which ensures transaction security through bank credit. At the same time, the time node of payment and the liability for breach of contract for overdue payment should be agreed upon.​

• Setting of delivery terms: Specify the delivery time, delivery location and transportation method. Clarify the liability for compensation that the supplier should bear if the delivery is delayed due to the supplier's reasons. For example, a Singapore enterprise purchasing goods from China stipulated in the contract that the supplier should transport the goods to the designated port in Singapore by sea within 30 days. If the delivery is delayed, the supplier should pay a penalty of 0.1% of the total contract price for each day of delay.​

• Quality inspection and after-sales service clauses: Formulate detailed quality inspection standards and inspection methods, such as the number of days after arrival for inspection, the selection of inspection institutions, etc. Agree on the after-sales service that the supplier should provide if the product has quality problems, including return and exchange, maintenance, compensation for losses, etc.​

• Intellectual property and confidentiality clauses: Clearly define the ownership and scope of use of intellectual property rights involved in the transaction process between the two parties to prevent intellectual property disputes. For commercial confidential information, such as procurement prices and product design schemes, the confidentiality obligations and liability for leakage shall be agreed upon.​

• Dispute resolution clause: Choose an appropriate dispute resolution method, which can generally be international arbitration or litigation. Clarify the location of the arbitration institution or court and the applicable law. For example, the two parties agree that in case of a dispute, it shall be submitted to the China International Economic and Trade Arbitration Commission for arbitration, and Chinese law shall apply.

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7.Contract Review and Negotiation​

• Internal legal review: In-house legal personnel or hired external legal counsel conduct a comprehensive review of the formulated contract terms to check whether the contract has legal loopholes, whether the terms are fair and reasonable, and whether they comply with Chinese laws and regulations and international practices. For example, before signing a procurement contract, a Thai enterprise's legal team carefully reviewed the intellectual property clauses in the contract to ensure that its own rights and interests were fully protected.​

• Negotiation with suppliers: Negotiate with suppliers on contract terms and strive for more favorable conditions for some key terms, such as price, payment method, delivery date, etc. In the negotiation process, fully demonstrate their own procurement strength and cooperation sincerity, while paying attention to the supplier's demands and seeking a balance of interests between the two parties. For example, an Indonesian enterprise, by promising to increase the purchase volume during the negotiation with the supplier on the payment method, obtained a more relaxed payment period.​

• Contract revision and confirmation: Revise and improve the contract terms according to the negotiation results to form the final contract version. After both parties confirm the contract content again, it will be signed and sealed by the authorized representatives, and the contract will formally take effect.​

8. Logistics and Transportation Arrangement​

Selection of transportation methods:​

• Maritime transportation: Suitable for large quantities, large - volume goods with relatively low requirements on transportation time. It has the advantages of large transportation volume and low cost, but the transportation time is long. For example, a Vietnamese enterprise purchasing Chinese building materials chose maritime transportation to transport the goods from Chinese ports to Vietnamese ports due to the large purchase volume.​

• Air transportation: Fast, suitable for emergency materials, high - value and small - volume goods. But the freight is relatively high. For example, a Malaysian electronics enterprise purchased key electronic components from China and chose air transportation to quickly transport the goods to ensure the production schedule.​

• Land transportation: Mainly applicable to Southeast Asian countries bordering China, such as Vietnam, Laos and Myanmar. It has high transportation flexibility and can realize door - to - door transportation, but the transportation volume is relatively small. For example, a Lao enterprise purchased daily necessities from Yunnan, China and directly transported the goods to warehouses in Laos by road.​

  Selection of logistics service providers:

• Screen experienced and reputable logistics service providers through logistics platforms, industry recommendations and other ways. Consult logistics service providers about transportation prices, transportation time, insurance services, cargo tracking and other information, compare service schemes and quotations of different logistics service providers, and select the most suitable partner. At the same time, check the qualification certificates, business history, customer reviews of logistics service providers to ensure that they have reliable transportation capacity.​

• Purchase of transportation insurance: To reduce the risk of goods during transportation, it is recommended to purchase transportation insurance. Communicate with insurance companies to determine appropriate insurance amounts and terms according to factors such as the value of goods, transportation methods, and transportation routes. In case of damage or loss of goods, you can apply for compensation from the insurance company in a timely manner.​

9.Import Customs Clearance Process​

Preparation of customs clearance documents:​

• Commercial invoice: Issued by the supplier, detailing the name, quantity, unit price, total price and other information of the goods.​

• Packing list: Explaining the packaging of the goods, including packaging materials, packaging dimensions, details of goods in each package, etc.​

• Bill of lading: As a certificate of ownership of goods and proof of the transportation contract, issued by the shipping company or airline.​

• Certificate of origin: To prove the country of origin of the goods. For goods enjoying tariff preferential policies between China and ASEAN, corresponding certificates of origin, such as FORM E certificates, need to be provided.​

• Other documents: Depending on the type of goods, documents such as quality inspection certificates, animal and plant quarantine certificates, and import licenses may also be required. For example, imported food needs to provide food safety inspection and quarantine certificates, and imported medical devices need to provide medical device registration certificates.​

  Customs declaration:

• You can entrust a professional customs broker or declare the import goods information to the Chinese customs through the electronic port platform. When declaring, accurately fill in the HS code (customs commodity code) of the goods, which determines the tariff rate and regulatory conditions of the goods. Customs brokers or enterprises must ensure that the declared information is consistent with the actual goods, otherwise they may face customs penalties.​

  Tax payment: The customs calculates import duties, value - added taxes and other taxes according to the HS code of the goods and relevant tax rates. Enterprises must pay taxes through banks within the specified time. Only after the taxes are paid will the customs release the goods. Some eligible goods, such as goods enjoying the ASEAN agreement tax rate, can enjoy a lower tariff rate if they provide a valid certificate of origin.​

  Inspection and release:

• The customs may inspect the goods, including document inspection and goods inspection. Document inspection mainly checks whether the customs declaration documents are complete and accurate; goods inspection is to check the actual situation of the goods against the declared information, such as the quantity, quality and specifications of the goods. After passing the inspection, the customs will release the goods, and the enterprise can arrange for pick - up. If problems are found during the goods inspection, such as false declaration or unqualified goods quality, it is necessary to rectify or handle them in accordance with the customs requirements.​

10.Tracking of Goods Quality​

• Arrival inspection: After the goods arrive at the destination, conduct inspection in a timely manner in accordance with the quality standards agreed in the contract. Organize professionals to conduct a comprehensive inspection of the goods. If quality problems are found, immediately take photos, record the details, and communicate with the supplier to require them to handle it in accordance with the contract agreement. For example, after receiving the purchased clothing, a Philippine enterprise found that some clothing had color difference problems, and immediately fed back to the supplier and provided photos as evidence.​

• Quality feedback and handling: Maintain close communication with the supplier and truthfully feedback the quality problems found during the inspection to the supplier. The supplier shall provide a solution within a specified time, such as return and exchange, replenishment, price compensation, etc. Enterprises need to follow up the progress of the supplier's handling to ensure that the problem is properly solved and their own interests are protected. For suppliers with repeated quality problems, the cooperation relationship should be re - evaluated.​

• Establishing quality files: Record the quality of goods purchased each time and establish supplier quality files. Through the analysis of quality data, understand the quality performance of different suppliers and provide a reference for subsequent procurement decisions. For example, an Indonesian enterprise found through quality files that a supplier's product quality was relatively stable, and gave priority to cooperating with it in subsequent procurement.​

11.Maintenance of Supplier Relationships​

• Regular communication: Maintain regular communication with high - quality suppliers to understand their production and operation status and new product research and development. Through communication, you can not only keep abreast of the supplier's dynamics but also enhance the cooperative relationship between the two parties. For example, a Malaysian enterprise holds video conferences with major suppliers every quarter to exchange market information and cooperation needs.​

• Feedback and suggestions: Feedback to suppliers information such as changes in market demand for products and customer feedback to help suppliers improve products and services. At the same time, affirm and encourage suppliers for their outstanding performance in the cooperation process; put forward constructive improvement suggestions for existing problems to jointly improve the cooperation level.​

• Cooperation expansion: On the basis of good cooperation between the two parties, explore the possibility of further expanding cooperation, such as increasing procurement categories, expanding procurement volume, and carrying out long - term strategic cooperation. By expanding cooperation, achieve mutual benefit and win - win results and enhance the stability of the supply chain. For example, after cooperating with a Chinese supplier for a period of time, a Singapore enterprise found that the supplier's products and services met the requirements, so it decided to increase the procurement of other related products and signed a long - term cooperation framework agreement with the supplier.