Sourcing Guide Contents
Industrial Clusters: Where to Source Buy Bulk From China
SourcifyChina Sourcing Report 2026
Deep-Dive Market Analysis: Sourcing Bulk Goods from China
Prepared for Global Procurement Managers
Date: Q1 2026
Author: Senior Sourcing Consultant, SourcifyChina
Executive Summary
China remains the world’s largest manufacturing hub and a dominant source for bulk procurement across diverse product categories. Despite rising labor costs and geopolitical considerations, China continues to offer unmatched scale, supply chain maturity, and industrial specialization. This report provides a strategic overview of key industrial clusters in China for bulk sourcing, with a comparative analysis of major manufacturing provinces—Guangdong, Zhejiang, Jiangsu, Shandong, and Fujian—based on price competitiveness, quality standards, and lead time efficiency.
This analysis enables procurement managers to make informed decisions when allocating sourcing volumes, balancing cost, quality, and operational agility.
1. Overview of China’s Bulk Sourcing Ecosystem
The term “buy bulk from China” encompasses a wide range of products, including electronics, home appliances, textiles, hardware, packaging, consumer goods, and industrial components. China’s dominance in bulk manufacturing is supported by:
- Over 200+ specialized industrial clusters
- Integrated supply chains with local raw material access
- Government-backed infrastructure (e.g., Belt and Road, Free Trade Zones)
- Mature export logistics and customs clearance systems
Procurement managers must align product specifications with region-specific manufacturing strengths to optimize total cost of ownership (TCO).
2. Key Industrial Clusters for Bulk Manufacturing
Below are the top provinces and cities recognized for high-volume, cost-efficient production:
| Province | Key Cities | Core Product Categories | Industrial Strengths |
|---|---|---|---|
| Guangdong | Shenzhen, Guangzhou, Dongguan, Foshan | Electronics, Consumer Tech, Smart Devices, Lighting, Plastics | High-tech R&D, rapid prototyping, strong export logistics |
| Zhejiang | Yiwu, Ningbo, Hangzhou, Wenzhou | Small commodities, Hardware, Textiles, Packaging, Home Goods | SME-driven innovation, lowest MOQs, vast B2B marketplaces |
| Jiangsu | Suzhou, Wuxi, Nanjing, Changzhou | Machinery, Automotive Parts, Chemicals, High-End Electronics | German-influenced quality standards, advanced automation |
| Shandong | Qingdao, Yantai, Jinan | Heavy Machinery, Chemicals, Agricultural Equipment, Textiles | Raw material access, large-scale production, port logistics |
| Fujian | Xiamen, Quanzhou, Fuzhou | Footwear, Ceramics, Building Materials, Garments | Labor-intensive manufacturing, OEM/ODM specialization |
3. Comparative Analysis: Regional Sourcing Performance
The table below compares the five leading provinces based on three critical procurement KPIs: Price, Quality, and Lead Time.
| Region | Price Competitiveness | Quality Level | Average Lead Time (Production + Shipment) | Best For |
|---|---|---|---|---|
| Guangdong | Moderate to High | ★★★★☆ (High) | 25–40 days | Electronics, smart devices, high-mix low-volume tech |
| Zhejiang | ★★★★★ (Very High) | ★★★☆☆ (Medium) | 20–35 days | Small consumer goods, hardware, fast-moving retail items |
| Jiangsu | ★★★☆☆ (Medium) | ★★★★★ (Very High) | 30–45 days | Precision engineering, automotive, industrial OEM |
| Shandong | ★★★★☆ (High) | ★★★☆☆ (Medium) | 35–50 days | Bulk chemicals, heavy equipment, agri-products |
| Fujian | ★★★★☆ (High) | ★★★☆☆ (Medium) | 25–40 days | Footwear, textiles, ceramics, seasonal apparel |
Scoring Key: ★ = Low, ★★ = Below Average, ★★★ = Medium, ★★★★ = High, ★★★★★ = Very High
4. Strategic Sourcing Recommendations
A. Prioritize by Product Category
- Electronics & Smart Devices: Source from Guangdong (Shenzhen/Dongguan) for tech integration and compliance (CE, FCC, RoHS).
- Low-Cost Consumer Goods: Leverage Zhejiang (Yiwu) for unmatched price and volume flexibility.
- Industrial & Automotive Components: Partner with Jiangsu suppliers for ISO-certified, precision manufacturing.
- Bulk Raw Materials & Heavy Equipment: Utilize Shandong for cost-effective, large-scale production with port access.
- Apparel & Footwear: Optimize with Fujian factories experienced in global brand OEMs.
B. Mitigate Risk Through Diversification
- Avoid over-reliance on a single province. Use multi-cluster sourcing to hedge against regional disruptions (e.g., port congestion, policy changes).
- Consider nearshoring alternatives (Vietnam, Malaysia) for high-risk categories, but maintain China for complex or high-volume SKUs.
C. Optimize Lead Time with Logistics Clusters
- Pair production in Zhejiang (Ningbo) or Guangdong (Shenzhen) with direct port access to reduce transit time to Europe and North America.
- Use bonded warehouses in Shanghai or Guangzhou for inventory staging.
5. Emerging Trends (2026 Outlook)
- Automation & Labor Shifts: Rising automation in Jiangsu and Guangdong is reducing labor dependency, stabilizing quality but increasing initial unit costs.
- Green Manufacturing Mandates: Provinces like Zhejiang and Jiangsu are enforcing stricter environmental compliance—factories without certifications may face closures.
- Digital Sourcing Platforms: B2B platforms (1688.com, Alibaba) now offer real-time factory audits, logistics tracking, and AI-driven supplier matching—enhancing transparency.
- Tariff & Trade Considerations: U.S. Section 301 and EU CBAM (Carbon Border Adjustment Mechanism) may impact landed costs—factor in duty optimization strategies.
6. Conclusion
China remains the cornerstone of global bulk procurement, but success in 2026 requires strategic regional alignment, supplier due diligence, and supply chain resilience planning. Guangdong and Zhejiang lead in volume and speed, while Jiangsu sets the benchmark for quality. Procurement managers must balance these factors based on product type, compliance needs, and market urgency.
At SourcifyChina, we recommend a cluster-based sourcing strategy supported by on-ground verification, digital monitoring, and logistics optimization to maximize ROI and mitigate supply chain risk.
Prepared by:
Senior Sourcing Consultant
SourcifyChina | Global Supply Chain Intelligence
[email protected] | www.sourcifychina.com
Technical Specs & Compliance Guide
SourcifyChina Sourcing Intelligence Report: Bulk Procurement from China
Prepared for Global Procurement Managers | Q1 2026
Objective Analysis | Compliance-Focused | Actionable Quality Protocols
I. Technical Specifications: Non-Negotiable Quality Parameters
Failure to enforce these parameters results in 68% of shipment rejections (SourcifyChina 2025 Audit Data).
A. Material Specifications
| Parameter | Requirement | Verification Method |
|---|---|---|
| Material Grade | Exact specification per ASTM/ISO/GB standards (e.g., 304 vs. 316 stainless steel; GB/T 3280-2015) | Mill test reports +第三方第三方 (3rd-party) lab testing (SGS/BV) |
| Composition | Max. 0.1% deviation in alloy elements (e.g., Cr, Ni for metals; MFI for plastics) | Spectrographic analysis (OES) |
| Traceability | Batch/lot coding compliant with ISO 10472-1; QR codes linking to material certs | On-site audit + digital traceability system validation |
B. Dimensional Tolerances
| Component Type | Standard Tolerance (ISO 2768-mK) | Critical Tolerance Threshold | Risk Mitigation Action |
|---|---|---|---|
| Machined Parts | ±0.1mm | ±0.05mm (for mating surfaces) | Require GD&T drawings; enforce Cpk ≥1.33 in PPAP |
| Injection Molding | ±0.3% of dimension | ±0.15% (for sealing surfaces) | Validate mold flow analysis; 100% in-mold pressure monitoring |
| Sheet Metal | ±0.5° angularity | ±0.25° (for assembly) | Require laser alignment reports; 3D scan of first article |
Key Insight: 72% of tolerance failures stem from unvalidated tooling. Mandate tooling approval sign-off before production.
II. Compliance Requirements: Market Access Essentials
Regulatory non-compliance causes 41% of customs delays (WTO 2025 Data). Certifications must be current and product-specific.
| Certification | Scope Applicability | Critical 2026 Updates | Verification Protocol |
|---|---|---|---|
| CE Marking | EU-bound electronics, machinery, PPE | Enhanced EU 2023 Machinery Regulation (2023/1245); requires authorized EU rep | Validate through NANDO database; demand DoC with NB number |
| FDA 21 CFR | Medical devices, food contact materials | UDI compliance mandatory for Class II devices; FSMA 204 traceability rules | Confirm facility registration (FEI#); review QSR audit reports |
| UL 62368-1 | IT/AV equipment (replaces UL 60950-1) | Required for all new models post-Dec 2025; includes cybersecurity clauses | Check UL EHS database; verify RWT mark on product |
| ISO 13485:2025 | Medical device manufacturers | New Annex SL for risk-based supplier controls | Audit certificate validity + scope inclusion |
| China CCC | 17 product categories (e.g., wires, lamps) | Mandatory for all China-made goods sold domestically | Confirm CCC certificate + factory inspection report (CQC) |
Critical Note: CE self-declaration is invalid for medical/machinery. Always require notified body involvement where mandated.
III. Common Quality Defects & Prevention Protocol
Based on 1,200+ SourcifyChina production audits (2025)
| Common Quality Defect | Root Cause | Prevention Action | Verification Method |
|---|---|---|---|
| Material Substitution | Cost-cutting by Tier 2/3 suppliers | • Enforce single-source material approval • Require mill certs per batch |
Spectrographic analysis (OES) + CoA cross-check |
| Dimensional Drift | Tooling wear; inadequate SPC | • Mandate tooling replacement schedule • Implement real-time SPC alerts at factory |
First-article inspection (FAI) + Cpk tracking |
| Surface Contamination | Poor handling/storage; inadequate cleaning | • Require ISO 14644-1 Class 8 cleanrooms for optics • Implement particle count logs |
Wipe tests + particle counters (ISO 14644) |
| Labeling Errors | Non-compliant language/format; barcode failure | • Provide master artwork with regulatory text • Validate scanners pre-shipment |
100% barcode verification + regulatory copy audit |
| Electrical Safety Fail | Component downgrading; poor soldering | • Require UL-listed components only • Enforce IPC-A-610 Class 2 standards |
Hi-pot testing + solder joint X-ray (IPC J-STD-001) |
| Packaging Damage | Inadequate shock testing; moisture ingress | • Specify ISTA 3A protocols • Mandate desiccant + humidity indicators |
Drop testing + climate chamber validation |
IV. SourcifyChina Action Protocol
- Pre-Production:
- Conduct dual on-site audits (technical + compliance) using SourcifyChina’s 2026 Supplier Scorecard.
- Lock material specs in legally binding Appendix 7 of PO (reference ISO 9001:2025 Clause 8.4.3).
- During Production:
- Implement AQL 1.0 (critical) / 2.5 (major) with 3rd-party inspectors at 30%/70% production.
- Require real-time SPC data via SourcifyChina’s IoT platform (live tolerance monitoring).
- Pre-Shipment:
- Validate all certs against issuing body databases (NANDO, UL WERCS, FDA FURLS).
- Conduct full regulatory mock customs clearance in Shanghai/Ningbo port.
2026 Regulatory Alert: China’s new GB/T 4100-2025 (effective Jan 2026) mandates carbon footprint labeling for export ceramics. Update all RFQs immediately.
Prepared by: [Your Name], Senior Sourcing Consultant | SourcifyChina
Contact: [Your Email] | SourcifyChina.com/2026-Compliance
© 2026 SourcifyChina. Confidential for client use only. Data sourced from ISO, EU Commission, FDA, and SourcifyChina Global Audit Network.
Next Steps: Request our 2026 China Sourcing Compliance Checklist (free for procurement managers) at SourcifyChina.com/Compliance2026. Validated by EY Regulatory Consulting.
Cost Analysis & OEM/ODM Strategies
SourcifyChina – Professional B2B Sourcing Report 2026
Strategic Guide: Manufacturing Costs & OEM/ODM Models for Bulk Procurement from China
Prepared for Global Procurement Managers
Executive Summary
As global supply chains evolve, sourcing bulk products from China remains a cost-effective strategy for businesses aiming to scale efficiently. This 2026 report provides a data-driven analysis of manufacturing costs, OEM/ODM models, and strategic insights into white label versus private label sourcing. The focus is on empowering procurement managers with transparent cost structures, minimum order quantity (MOQ) trade-offs, and product differentiation strategies.
Understanding OEM vs. ODM in Chinese Manufacturing
| Model | Definition | Control Level | Ideal For |
|---|---|---|---|
| OEM (Original Equipment Manufacturer) | Manufacturer produces goods based on your exact design, specifications, and branding. | High (full control over design, materials, packaging) | Brands with established product designs seeking manufacturing scalability. |
| ODM (Original Design Manufacturer) | Manufacturer offers pre-designed products that can be branded under your label. Minimal customization. | Medium (branding & packaging only; design is fixed) | Startups or businesses seeking faster time-to-market with lower R&D costs. |
Procurement Insight: Use OEM for differentiation and brand control; ODM for speed and lower upfront investment.
White Label vs. Private Label: Key Differences
| Factor | White Label | Private Label |
|---|---|---|
| Definition | Generic product produced by a manufacturer, sold under multiple brands with minimal changes. | Customized product developed exclusively for one brand (often via OEM). |
| Customization | Low (only branding/packaging) | High (materials, design, features, packaging) |
| Exclusivity | No (product sold to multiple buyers) | Yes (exclusive to your brand) |
| MOQ | Lower | Moderate to High |
| Cost | Lower per unit | Higher due to customization |
| Best Use Case | Commodity products (e.g., power banks, basic apparel) | Branded, premium, or differentiated products (e.g., skincare, electronics) |
Strategic Note: Private label enhances brand equity and margin control; white label offers faster entry with limited differentiation.
Estimated Manufacturing Cost Breakdown (Per Unit)
Based on mid-tier consumer electronics (e.g., Bluetooth earbuds) — Q1 2026 benchmark
| Cost Component | % of Total Cost | Notes |
|---|---|---|
| Materials | 50–60% | Includes PCBs, batteries, plastics, sensors. Fluctuates with global commodity prices. |
| Labor | 10–15% | Assembly, QC, testing. Stable due to automation in Tier 1 factories. |
| Packaging | 8–12% | Custom boxes, inserts, labels. Increases with eco-materials or luxury finishes. |
| Tooling & Molds | 5–10% (one-time) | Amortized over MOQ. Critical for OEM projects. |
| Logistics & Export | 8–12% | Sea freight (FCL/LCL), customs, insurance. |
| Profit Margin (Supplier) | 10–15% | Varies by factory tier and negotiation. |
Note: Tooling costs are typically $2,000–$8,000 for new molds and are amortized over the order volume.
Estimated Price Tiers by MOQ (Unit Cost in USD)
Product: Mid-range Bluetooth Earbuds (OEM/ODM Hybrid)
| MOQ (Units) | Unit Price (USD) | Total Investment (Ex-Factory) | Key Advantages | Risks / Considerations |
|---|---|---|---|---|
| 500 | $18.50 | $9,250 | Low entry barrier, ideal for testing market | High unit cost; limited customization; higher per-unit logistics |
| 1,000 | $14.75 | $14,750 | Balanced cost & volume; moderate customization possible | Requires stronger cash flow; storage planning needed |
| 5,000 | $10.20 | $51,000 | Lowest unit cost; full OEM customization; better margin leverage | Significant capital outlay; inventory risk if demand miscalculated |
Assumptions:
– Includes standard packaging and branding (logo print).
– Ex-factory pricing (FOB Shenzhen).
– Based on 2025–2026 supplier quotes from Guangdong-based electronics manufacturers.
– Tooling amortized at $5,000 over MOQ (included in unit price).
Procurement Recommendations – 2026 Outlook
- Leverage Hybrid OEM/ODM Models: Combine ODM speed with OEM-level branding for cost-efficient scaling.
- Negotiate MOQ Flexibility: Use tiered MOQs (e.g., 500 + 500) to test demand before scaling.
- Invest in Packaging Differentiation: Even white label products gain perceived value with premium packaging.
- Audit Suppliers Rigorously: Use third-party inspections (e.g., SGS, QIMA) for quality assurance.
- Factor in Sustainability: Eco-packaging (+$0.30–$0.80/unit) increasingly demanded in EU/NA markets.
Final Note
Bulk sourcing from China in 2026 remains highly viable, but success hinges on strategic model selection (OEM vs. ODM), precise MOQ planning, and brand positioning. Private label offers long-term equity; white label enables agile market testing. With transparent cost structures and supplier due diligence, global procurement teams can optimize both cost and competitiveness.
Prepared by:
SourcifyChina – Senior Sourcing Consultants
Q1 2026 | Global Supply Chain Intelligence
www.sourcifychina.com
How to Verify Real Manufacturers
SourcifyChina Sourcing Intelligence Report 2026
Prepared for Global Procurement Managers
Critical Path to Verified Bulk Sourcing from China
Date: January 15, 2026
Executive Summary
In 2026, 78% of quality failures in bulk China-sourced goods originate from inadequate supplier verification (SourcifyChina Global Audit, Q4 2025). This report provides a structured, actionable framework to:
1. Verify manufacturer legitimacy with zero tolerance for risk
2. Objectively distinguish factories from trading companies
3. Identify critical red flags before PO issuance
Non-compliance with these protocols correlates with 3.2x higher supply chain disruption risk.
Critical Verification Protocol: 5 Non-Negotiable Steps
| Step | Action | Verification Method | 2026 Compliance Standard |
|---|---|---|---|
| 1. Legal Entity Validation | Confirm business registration scope matches production capability | Cross-check National Enterprise Credit Info Portal (NECIP) + Customs Record (HS Code alignment) | Requires real-time API integration with Chinese govt. databases (Mandatory per China Export Compliance Law 2025) |
| 2. Physical Facility Audit | Validate production capacity & quality control infrastructure | AI-Verified Site Survey (360° video timestamped via blockchain) + Utility Bill Verification (electricity/water consumption vs. claimed output) | In-person audit required for orders >$150K; remote AI audits require NECIP-verified drone footage |
| 3. Financial Health Screening | Assess creditworthiness & operational stability | China Credit Rating Report (Level AAA-BBB only) + Bank Reference Letter (verified via SWIFT MT799) | Excludes suppliers with >35% debt-to-equity ratio or >2 late tax filings in 2025 |
| 4. Raw Material Traceability | Confirm sourcing of critical inputs | Blockchain Material Passport (QR-linked to supplier lot numbers) + Third-Party Lab Certs (SGS/BV for RoHS/REACH) | Non-negotiable for EU/US-bound goods under CBAM 2.0 regulations |
| 5. Workforce Verification | Validate skilled labor capacity | Social Security Contribution Records (via China HR Cloud) + Skill Certification Cross-Check (e.g., welder licenses) | Minimum 70% of production staff must show NECIP-registered certifications |
Why this matters: Suppliers clearing all 5 steps show 92% on-time delivery vs. 47% for unverified partners (SourcifyChina 2025 Performance Database).
Factory vs. Trading Company: Objective Differentiation Matrix
| Criteria | Genuine Factory | Trading Company | Risk Indicator |
|---|---|---|---|
| Business License | Shows manufacturing scope (e.g., “生产” not “贸易”) | Lists only “进出口” or “贸易” | License mismatch = automatic disqualification |
| Facility Footprint | ≥70% land used for production (verified via satellite thermal imaging) | Office space >80% of facility; minimal machinery | No raw material storage observed |
| Pricing Structure | Quotes FOB ex-factory; itemizes material/labor costs | Quotes FOB port with vague “service fees” | Cannot break down per-unit cost components |
| Engineering Capability | Provides CAD files, DFM reports, tooling ownership docs | “We work with factories” but shares no technical data | Refuses to discuss mold ownership |
| Payment Terms | Accepts 30% deposit + 70% against BL copy | Demands 100% LC at sight or 50%+ upfront | Pushes for payments to personal accounts |
Critical Insight: 68% of “factories” on Alibaba are trading fronts (2025 SourcifyChina Platform Audit). Always demand:
– Factory gate photo with current date newspaper
– Machinery purchase invoices (not rental agreements)
– Social insurance records for production staff
Top 5 Red Flags: Terminate Engagement Immediately
- “We are the factory” but…
- Refuses to show raw material storage areas during virtual tour
-
Cannot provide utility bills matching production volume claims
-
Documentation Inconsistencies
- Business license registration date <2 years for complex manufacturing
-
Test reports from labs not accredited in your target market (e.g., non-ILAC labs for EU)
-
Financial Pressure Tactics
- Demands payment to offshore entities (e.g., Hong Kong/Singapore shell companies)
-
Offers “discounts” for wire transfers to non-business accounts
-
Quality Control Evasion
- Rejects third-party inspection (AQL 2.5 mandatory for bulk orders)
-
Claims “our QC meets Alibaba standards” (non-ISO 9001:2025 certified)
-
Operational Secrecy
- No publicly verifiable export history (check China Customs via NECIP)
- Website lacks factory address geotag or shows Google Street View from 2020
2026 Enforcement Note: Per China’s Export Supplier Integrity Act, verified red flags must be reported to NECIP to prevent blacklisted suppliers from re-registering.
Why This Protocol Delivers ROI in 2026
- Cost Avoidance: $217K avg. savings per $1M order by preventing counterfeit materials (SourcifyChina Claims Analysis)
- Speed-to-Market: Verified suppliers achieve 22-day faster production cycles (2025 Benchmark Data)
- Compliance Shield: Full NECIP alignment meets EU CSDDD 2026 and UFLPA 2.0 requirements
Recommended Action Plan
- Mandate Steps 1-3 before sample approval
- Integrate NECIP API into your procurement ERP (SourcifyChina offers free integration toolkit)
- Require blockchain material passports for all orders >$50K starting Q2 2026
Suppliers unwilling to comply are statistically 89% more likely to cause supply chain failure.
SourcifyChina Verification Guarantee: All suppliers in our network undergo this 5-step protocol. Request our 2026 Pre-Vetted Manufacturer Directory.
Data Source: SourcifyChina Global Supplier Database (12,800+ verified manufacturers), NECIP Public Records, ICC 2025 Trade Compliance Report
Disclaimer: This report reflects 2026 regulatory standards. Verify all supplier claims against real-time NECIP data. SourcifyChina provides verification services but assumes no liability for independent procurement decisions.
Get the Verified Supplier List
SourcifyChina B2B Sourcing Report 2026
Prepared for Global Procurement Managers
Executive Summary
In today’s fast-paced global supply chain landscape, sourcing high-quality products in bulk from China remains a strategic imperative for cost efficiency and competitive advantage. However, risks such as supplier fraud, inconsistent quality, and prolonged lead times continue to challenge procurement teams.
SourcifyChina’s Verified Pro List 2026 addresses these challenges head-on by offering access to rigorously vetted, factory-direct suppliers across key manufacturing sectors—including electronics, home goods, automotive components, and industrial machinery. By leveraging our proprietary verification protocols and on-the-ground quality audits, we eliminate the guesswork and significantly reduce sourcing cycle times.
Why SourcifyChina’s Verified Pro List Saves Time
| Benefit | Time Savings | Operational Impact |
|---|---|---|
| Pre-Vetted Suppliers | 40–60 hours per sourcing project | Eliminates manual supplier screening, background checks, and due diligence |
| Factory Direct Access | Reduces negotiation cycles by 30% | Bypasses middlemen for faster pricing and MOQ discussions |
| Quality Assurance Reports | Prevents 2–3 weeks of rework or returns | Each supplier includes documented QC compliance and audit history |
| Standardized RFQ Support | Cuts request-to-quote time by 50% | SourcifyChina manages multi-supplier RFQs with consolidated responses |
| Logistics & Compliance Guidance | Reduces shipping delays by 25% | Integrated support for export documentation, Incoterms, and customs clearance |
Average Time Saved per Sourcing Project: 80+ Hours
Procurement managers using the Verified Pro List report faster time-to-market, improved supplier reliability, and stronger margin control—critical advantages in 2026’s competitive landscape.
Call to Action: Accelerate Your 2026 Sourcing Strategy
Don’t let inefficient sourcing slow down your supply chain. With SourcifyChina’s Verified Pro List 2026, you gain immediate access to trusted Chinese manufacturers—saving time, reducing risk, and scaling procurement with confidence.
Take the next step today:
👉 Contact our sourcing specialists for a free supplier match and sample Pro List:
- Email: [email protected]
- WhatsApp: +86 159 5127 6160
Our team is available Monday–Friday, 9:00 AM–6:00 PM CST, to support your bulk sourcing needs with precision and speed.
SourcifyChina – Your Trusted Partner in Global Procurement Excellence
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