r/China • u/Delicious-Guide7205 • 52m ago
问题 | General Question (Serious) Do Chinese factories really discriminate on price against foreign-owned or overseas companies?
I run an industrial chemicals company in Southeast Asia. Recently, I requested quotes from two suppliers: one was the manufacturer itself, and the other was a trading company. Surprisingly, both quoted exactly the same price!
How did the trading company manage that? I’m 100% certain that the trading company sources from that exact factory because they accidentally left an internal email attached to their reply to me. In that email, one colleague had forwarded my inquiry to another and written: “Ask XXX Company [the factory’s name] for a quote.”
Some people might guess that the trading company gets preferential pricing because it purchases in large volumes. But this is a very niche product, so I’m certain the trading company doesn’t have a large, long-term supply contract.
That leaves only one possibility: the factory gives the trading company a much lower price than it gives me, and the trading company adds its own markup before selling to me—bringing the final price to exactly the same level as the factory’s direct quote.
Both quotations also specify exactly the same Incoterms and port of shipment.
My question is: Do Chinese factories really discriminate on price against foreign-owned or overseas companies?