An experienced team of trade consultants offering business & legal services in China.

Frequently Asked Questions (FAQ)

• Isn’t sourcing from China rather risky and takes a lot of effort?
• What are the most important things about sourcing or selling in China?
• Why should our company pay for a trade consultant like Dragon Mountain, instead of sourcing ourselves?
• How does our company decide if it is a good idea to source in China?
• Isn’t it necessary or advisable for our company's buyer to come to China?
• Without our own company personnel in China, how can we retain control of the sourcing?
• How will Dragon Mountain find and select a supplier or service provider?
• How do we know that the finished product will be as satisfactory as the sample that was sent to our company for examination?
• How can we be sure that the quality of product or service from a supplier won’t slip with time?
• How can we be sure the Chinese supplier is a good corporate citizen?
• How does our company pay a Chinese supplier, or get paid by a Chinese customer?
• How much will Dragon Mountain services cost our company?

It is no accident that China has been called “the world’s workshop”. Over 90% of the DVD players, 75% of the mobile phones, and 63% of brand-name clothing, for example, are made here. The Chinese have learned quickly how to manufacture products cheaply that satisfy Western requirements for quality and safety. Companies that come to China with a good business case, with the help of Chinese expertise (such as Dragon Mountain services), and a realistic expectation of how business is done here can achieve good results.

The Chinese prefer to do business with foreign companies that are committed to China and have a presence here. Thus, it is vitally important for you to establish a trusting relationship with a supplier or customer in China. Both sides need to know who they are dealing with in order to minimize the risk of doing international business across a cultural and language gap. Dragon Mountain gives your company a “Chinese face” and avoids the cross-cultural uncertainties. We do your company’s groundwork for you, here in mainland China, without you taking a big risk or making a direct business investment.

Dragon Mountain’s services will continue to exist only if they save our clients money. We will receive a commission payment for our assistance to your company only when the transaction is completed to your satisfaction. You will save considerable time and money by not having to come to China as frequently, or at all, to do your own groundwork. Dragon Mountain is based in the manufacturing heartland of China and our team knows Chinese business. You can rely on our judgment, advice and actions on your behalf.

Dragon Mountain will assist you with your business case for doing business in China. Typically, sourcing of products that benefit greatly from China’s low labour cost will achieve the greatest savings for you. However, products that must be shipped by air, or that are low-density packaged, will add considerably to the cost of importing them from China.

For most purposes, you can leave the Dragon Mountain team to act on your behalf without your traveling to China. You can trust Dragon Mountain to perform the buyer role in a China sourcing project, or a marketing role in finding Chinese customers for you. If there are occasions, such as the development of a partnership opportunity with a Chinese company or investment in a Chinese factory, of course it would be in your interests to come to China early in the game and see the situation first-hand. The Dragon Mountain team will look after your every need whenever you visit China.

Dragon Mountain services exist solely to help your company implement its business plan and achieve its objectives. We have no manufacturing or sales agenda to satisfy, but contract only with you to look after your interests. In the future, with China business experience and success under your belt, you might consider establishing your own company operations here. Again, Dragon Mountain can help you with your Chinese business development opportunities and legal needs.

The amount of preparation done for a sourcing project has an important influence on its successful outcome. The Dragon Mountain team will investigate many aspects of potential Chinese suppliers: the company’s price competitiveness; the capability of the company to deliver on the order as promised; the reliability of the company’s suppliers in providing raw materials; the production control and change management capability of the company and any sub-contractors; the company’s quality control system; the financial and labour stability of the company; the history and maturity of the company management team; and quality of the samples provided. These parameters are often best determined by an on-site visit which is a policy of Dragon Mountain service to its sourcing clients. Beginning with a long list of companies in the product field, we will develop a short list of the best suppliers. Dragon Mountain does not receive any payment (i.e., commission or finder’s fee) from a Chinese supplier or service provider but is paid solely by you, our client, to get you the best possible deal in China.

A Dragon Mountain representative will check your order for quality, quantity and specifications, and be on guard for changes from the spirit or letter of the contract you signed. Any discrepancies will be dealt with immediately to your satisfaction, but with minimal involvement by you.

Dragon Mountain representatives will not cease in doing pre-shipment checking of the quality, quantity and specifications of each shipment, even from a reputable, long-term supplier. Mistakes made at the factory will not be loaded on a boat to you. We will sub-contract to the most experienced quality inspection companies in each product area to ensure there are no problems.

As in every country in the world, a relatively small percentage of companies or people in China are involved in dishonest practices. Recently, a few highly-publicized cases involving the export of unsatisfactory children’s toys, pet food and toothpaste have tarnished the reputations of millions of honest, hard-working Chinese and brought shame to the government. Dragon Mountain has a strict policy of not doing business with any company that it finds is breaking laws involving labour, environmental or product safety, or that is operating corruptly or against the interests of its workers. We will be diligent on this policy and investigate every potential supplier.

The standard mode of payment for Dragon Mountain services, expenses and commission is in U.S. dollars paid to our account in Hong Kong. Similarly, payments from a Chinese customer to your company can be made worldwide in U.S. dollars through Dragon Mountain’s bank in Hong Kong. The Dragon Mountain accounting department will handle the necessary transfers and currency exchange to mainland China, thus freeing your company from these processes. Payment methods, however, can be discussed and perhaps modified to suit our client’s needs.

When a sourcing or marketing contract (Stage 2) is signed with Dragon Mountain, we will negotiate with you what a reasonable price will be for the package of services that your project requires. Stage 2 and 3 professional services (legal, accounting, market research, quality inspection) will be charged at a minimum of $USD 50.00 per hour, while office and other support services will be bundled at a lower hourly rate. Expenses, such as courier services, business travel and currency exchange, will be charged back to our client on a cost-recovery basis. Some clients are more comfortable with a commission form of payment for our consulting services that would entail a fixed percentage of the supplier or customer order that results from the sourcing or marketing project. The level of commission will be negotiated on the basis of the difficulty and complexity of the Dragon Mountain services required to fulfill the order. Please talk to us first about what services you need to be successful in China.