Sourcing from China

 The vast range of products that can be obtained from China has attracted buyers from around the world. In the Middle East, a growing number of companies are sourcing their equipment, supplies and raw materials from China, which has been touted as the second largest economy in the world. Trade volume between the Middle East and China rose to almost $200 billion annually. Low prices, huge volumes and rapid improvement in logistics are factors that contribute to China's attractions. The country ranks 27th on the World Bank's Logistical Performance Index. It has a vast and modern road and railway network. It has six of the world's busiest ports as well as 500 airports to link Chinese products with their end-users overseas.
The rising competitiveness and innova-tion of Chinese exporters of manufactured goods in the construction machinery sec-tor, for example, was primarily driven by the country's infrastructure build-up over the past 15 to 20 years, creating significant economies of scale and scope for most of the country's manufacturing sectors. The  infrastructure build-up and procurement demand, initially fuelled by foreign-invested companies and with some assistance from government procurement policies, govern-ment-approved projects, as well as the avail-ability and low cost of land and capital, have generated a highly competitive and increas-ingly sophisticated plethora of local produc-ers that are now dominating the Chinese market and aiming for global expansion.
As a result, Middle East companies can obtain direct savings due to China's lower cost base, specifically in the areas of util-ity costs, raw materials and labour, as these have enabled Chinese companies to produce high-value products whilst retaining rela-tively competitive pricing.
China has also created a variety of investment promotion organisations, and these have paid off with the current trends of Chinese companies and Middle East conglomerates establishing joint ventures on major projects involving the production of plastics materials, machineries and finished products. The Chinese government also facilitates easier access for Middle Eastern buyers by mounting trade fairs all throughout the year that showcase the mainland's various industries. These trade shows also provide a venue for Middle Eastern buyers to touch base with Chinese suppliers.
For Middle East-based companies in search of suppliers in China, a large number of websites link buyers to sellers, and offer tips on going to China and negotiating with Chinese suppliers. Another option is to check with government agencies and business associations in China to look for a supplier or check the credibility of a new supplier found via other sources. In particular, the Federation of China Trade Associations and Chambers of Commerce (http://english.chinaassn.com) serves as an umbrella organisation of a large number of business associations. They maintain a group of experts who can advise foreign businesses and individuals who want to do business with China. It is the only member organisation of its type in China that provides legal surveys, policy analysis and recommendation, case analysis, evaluation and guidance as well as services for trade associations and chambers of commerce.