Reading Graham Hackett's excellent piece he highlights two difficulties trading with China - elusive consistent quality and problems when buying through an agent.

Unless you're an 'old China hand' it is vital that you have experienced Chinese people working for you, faithfully acting at all times in your best interests. They will not take commissions from manufacturers. They should help you source direct from a manufacturer which will yield better communications and quality control while wiping out a commission level. That alone negates the 33% currency deficiency that is working against imports to the UK from China.

I started working with Western companies in Beijing over twenty years ago. Those that bought merely on price got what they deserved. Others showed a real commitment to sourcing the right product for their customers, meeting or exceeding their current quality standards but giving a better profit margin.

Although now based in Harrogate, even I with my daily phone calls to Chinese factories find it necessary to employ people in China. They can carry out quality inspections during manufacture and loading as well as sort out any issues that can make the difference between profit and loss for the client.

The way many companies do business in China frightens me. In a tough market it is vital that margins are maximised and quality standards rigorously enforced if you are going to give your customers the products they want and can afford.
 
Qiuying (Jenny) Ren, Nihao Asia Ltd