China has suppliers for almost anything — the challenge is finding the one that fits your product, volume and expectations. A low quote from the wrong supplier usually costs more in delays, rework and communication than a fair quote from the right one.
1. Capability fit
- Do they make parts like yours (process, size, material, tolerance) regularly — not just occasionally?
- Is your volume normal for them? A factory built for 100,000-piece runs may deprioritise a 500-piece order.
- Which steps do they do in-house and which are subcontracted (e.g. anodizing, plating, PCB fabrication)?
- Can they show comparable parts or inspection reports (anonymised)?
2. Communication
- Do they ask good questions about your drawing, or just send a price?
- Is there one responsible contact who understands the technical details?
- Are answers in writing, with clear assumptions in the quotation?
- Do they flag risks and suggest DFM improvements?
3. Quality system
- Measuring equipment appropriate for your tolerances
- First article inspection and dimensional reports
- Willingness to accept third-party inspection
- Certifications (e.g. ISO 9001, IATF 16949 for automotive) — verify certificates with the issuing body, and remember a certificate is not a guarantee for your part
Details in our guide to quality control and inspections.
4. Samples before commitment
Order samples or a small first batch before large orders and tooling. Evaluate not only the parts but the process: were deadlines met, were deviations reported honestly, were documents complete?
5. Intellectual property and contracts
- An NDA before sharing detailed designs; for China, many companies use an NNN agreement (non-disclosure, non-use, non-circumvention) governed by Chinese law and enforceable in China
- Tooling ownership written into the purchase agreement, including what happens if you move production
- Share only what each supplier needs; consider splitting critical parts across suppliers
- Register trademarks in China early if you sell branded products
Legal requirements differ by case — get advice from a lawyer familiar with China contracts.
6. Commercial terms
- Payment terms (a deposit with balance after inspection is common for new relationships)
- Incoterms (EXW, FOB, DAP, DDP) and who handles export documents
- Lead time broken down: tooling, samples, production, shipping
- Defect handling: rework, replacement or credit agreed in advance
Red flags
- A price far below other quotes with no explanation
- No questions about tolerances, materials or finishes
- Reluctance to provide samples, reports or allow inspection
- Constantly changing contacts or vague answers about who actually makes the part
- Pressure to pay the full amount before production
Factory, trading company or sourcing partner?
Working directly with a factory can be efficient when your product needs one process and you can manage the relationship. Products combining several processes — machined, molded, sheet metal and electronics — often benefit from a partner who coordinates multiple specialised suppliers, handles inspection and communicates in your language and time zone. That is the model we work with: see About us and OEM / ODM.