5 tips to trade better with companies in China from a global fintech

China accounts for 15 percent of world trade, and if you’re a trader, maybe, you’ve already traded with China or plan to do so in the future. Thus, smuggling trade through China through the coronavirus proved to be difficult.

Prices have risen for reasons such as rapid inflation and commodity prices have risen to the historical level, as have fluctuations in exchange rates.

While these are important issues outside of SME control, there are some important issues that businesses need to consider to improve trade with China:

Manage FX risk

Always ask for prices in the seller’s money – renminbi.

Consumers often adjust their export prices according to the exchange rate of the US dollar/renminbi. Due to market volatility, businesses should expect Chinese consumers to add a cap to their foreign prices to protect themselves against small changes.

If there is significant volatility in price changes, then traders increase their prices so that traders participate in the loss of FX. For candidates to become a denomination in the region, investors are assured that the adjusted funds will not be affected by the exchange rates.

Always negotiate prices

Trade may not be as widespread in Australia, but in China, it is a common practice. Consumers are expected to communicate only so that customers are not embarrassed and failure to do so can result in frustration.

Some of the communication tools you can use are to establish long-term relationships, increase the number of orders over time, or offer to help other people present. These tricks create a circle-winning circle of buyers and sellers and can help lower the starting price.

Communicate like a local

WeChat is the most popular communication platform in China and also the most popular way to do business. As such, businesses need to be able to use WeChat to ensure communication with customers, building strong relationships. Again, response times can be very fast: merchants can take longer to respond to email, but most of the time they respond quickly to WeChat even if they don’t work hours or weekends.

Develop personal ties beyond business

According to the way China does business, business partners are often friendly, combining better personal and professional relationships. For example, it is common for Chinese companies to welcome you to a club meeting in their office, while business agreements are often discussed at the dinner table. Connecting customers as friends and going through a western business culture will strengthen your relationship with the family businesses and start conversations. This can range from sending Chinese New Year greetings, inviting you to visit your country and hosting them, and so on.

Understand local market practice

The problem of both the Chinese and Chinese markets and cultural differences is a major barrier to business adaptation for Australian companies, which is sometimes difficult to negotiate.

Therefore, companies need to acquire knowledge of Chinese resources and support to better understand the marketing role and facilitate communication. Companies can evaluate many different options, depending on the quantity and resources available.

Many of these may be due to the use of brokerage in China, which involves negotiation and sales, up to four “setting up your own Chinese office with local staff or hiring Mandarin-speaking staff in your country to help catch customers.

China is often seen as a clear market with many descriptive business models. So as China’s economy grows, we will also see China seek to expand its global presence and open up to other parts of the world.

One way to see the growing trend in China and its transactions, e-commerce has seen tremendous growth, initially facing B2C, but still moving forward and being B2B. In addition, the introduction of the digital currency introduced in the model in August last year will also change the way international trade is stable and should later work in cross-border trade between China and the United States.

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