When I first started sourcing products from China, I assumed that price, quality, and logistics were the most important aspects of the business. While those things matter, I quickly learned that relationships—more than anything—are at the heart of long-term success.
In China, business isn’t just about transactions; it’s about trust, long-term partnerships, and mutual benefit. The concept of guanxi, which roughly translates to “relationships” or “connections” is at the heart of Chinese business culture.
Here’s what I’ve learned from years of working with Chinese suppliers and manufacturers.
Business is Built on Trust, Not Just Contracts
In Western business culture, contracts are the foundation of a deal. The bottom dollar is often what makes or breaks a deal. In China, however, a handshake and mutual understanding often carry just as much weight. While price points and contract negotiations are still important, they are seen as a starting point, what really matters is the relationship behind them.
I’ve had suppliers go above and beyond for me, not because of what was written in a contract, but because we had built a strong working relationship. When COVID-19 disrupted supply chains, one of my best suppliers prioritized my orders over larger companies simply because we had spent years developing trust.
Face-to-Face Meetings Matter More Than Emails
While it’s possible to do business with Chinese suppliers remotely, I noticed a huge difference when I visited in person. Meetings over dinner, factory visits, and simply taking the time to understand their business helped build a stronger connection.
One of the biggest surprises was how much business happens outside the boardroom. Many deals are discussed over meals, where conversations flow more casually. It’s not just about negotiating, it’s about showing respect and genuine interest in your partners’ lives.
Patience and Respect Go a Long Way
In Western cultures, we often prioritize speed and efficiency in negotiations. Time is money, as the saying goes, and no one wants to feel like they are wasting money. In China, rushing a deal can come across as disrespectful. Relationships take time to develop, and trust is earned gradually. The more pressure you put on them, the more they feel like you are trying to skip their long-held traditions.
Early on, I made the mistake of pushing too hard for lower prices with a supplier. They ended up taking more and more time to respond, losing. When I later learned about guanxi, I realized that I had focused too much on price and not enough on building a real connection. After shifting my approach -showing appreciation for their work, discussing long-term plans, and visiting their factory, I found that price negotiations became smoother and more collaborative.
Reciprocity is Key
One of the most important lessons I’ve learned is that relationships in China are a two-way street. If a supplier does you a favor—whether it’s speeding up production or helping you source an unusual product—there’s an unspoken expectation that you’ll return the favor in some way.
For example, one supplier once rushed an order for me during peak season. Later, when they asked if they could have more business, I was more inclined to have them work on my clients’ projects. Small gestures of goodwill go a long way in solidifying relationships.
Long-Term Thinking Wins Over Short-Term Gains
Many Western businesses focus on getting the best deal today, even if it means switching suppliers frequently. In China, loyalty is highly valued. If you’re seen as someone who jumps from supplier to supplier chasing the lowest price, you might find it difficult to secure priority service or good terms.
By committing to long-term partnerships, I’ve built supplier relationships where they proactively offer me better deals, help me improve product designs, and even give me insights on upcoming industry trends.
Doing business in China taught me that success isn’t just about negotiating the best price or securing a reliable supply chain—it’s about building meaningful relationships. The suppliers you work with aren’t just vendors; they’re partners in your business journey.
By prioritizing trust, respect, and long-term collaboration, you’ll find that working with Chinese suppliers isn’t just easier—it’s also far more rewarding.
Looking to Build Strong Supplier Relationships?
At MG Trading, we don’t just source products—we build connections. With decades of experience working with trusted Chinese suppliers, we help businesses secure high-quality products at competitive prices while ensuring reliable partnerships and smooth logistics.
Give us a call or contact us today!