Sourcing Guide Contents
Industrial Clusters: Where to Source Perfect China Company
SourcifyChina | Professional B2B Sourcing Report 2026
Subject: Market Analysis for Sourcing “Perfect China Company” – Industrial Clusters & Regional Benchmarking
Prepared for: Global Procurement Managers
Date: Q1 2026
Executive Summary
The term “Perfect China Company” is a metaphorical expression frequently used in global B2B sourcing circles to describe a supplier that delivers exceptional value through an optimal balance of quality, cost-efficiency, reliability, and scalability. While no single supplier is universally “perfect,” identifying high-performing industrial clusters in China significantly increases the probability of securing such partners.
This report provides a data-driven analysis of China’s key manufacturing provinces and cities known for producing suppliers that meet the “perfect” benchmark across diverse product categories. We focus on comparative advantages in cost, quality, and lead time, offering procurement managers actionable insights for strategic sourcing decisions in 2026.
Key Industrial Clusters for High-Performance Manufacturing in China
China’s manufacturing landscape is highly regionalized, with provinces and cities developing specialized ecosystems based on historical industrial development, government policy, and supply chain density. The following regions are consistently recognized for hosting suppliers that meet or exceed international expectations for performance and reliability.
1. Guangdong Province (Pearl River Delta)
- Core Cities: Shenzhen, Guangzhou, Dongguan, Foshan, Zhongshan
- Strengths: Electronics, consumer goods, precision components, rapid prototyping, export logistics
- Ecosystem: Home to 40% of China’s foreign-invested manufacturing firms; dense supplier networks and Tier-1 OEMs
- Trade Access: Proximity to Hong Kong and Shenzhen ports enables fast global shipping
Ideal for: High-volume, fast-turnaround projects with strict quality standards (e.g., smart devices, home appliances)
2. Zhejiang Province (Yangtze River Delta)
- Core Cities: Hangzhou, Ningbo, Yiwu, Wenzhou, Shaoxing
- Strengths: Light industrial goods, textiles, home décor, small appliances, e-commerce fulfillment
- Ecosystem: Dominates global SME exports via Alibaba and 1688.com; strong private enterprise base
- Innovation: Hangzhou’s digital integration enables smart manufacturing and traceability
Ideal for: Mid-volume, design-sensitive goods with competitive pricing (e.g., consumer lifestyle products)
3. Jiangsu Province (Yangtze River Delta)
- Core Cities: Suzhou, Nanjing, Wuxi, Changzhou
- Strengths: Industrial machinery, automotive components, high-end electronics, precision engineering
- Ecosystem: Strong German and Japanese joint ventures; high process discipline and automation
- Quality Benchmark: Closest to “German-level” consistency in Chinese manufacturing
Ideal for: Mission-critical components and regulated industries (e.g., medical devices, automotive supply)
4. Shanghai (Municipality)
- Strengths: R&D centers, high-value electronics, automation systems, pilot production
- Ecosystem: Global HQs, innovation labs, and advanced logistics
- Limitation: High labor and operational costs; not ideal for mass production
Ideal for: Product development, quality assurance hubs, and premium branding partnerships
Comparative Regional Benchmarking: Guangdong vs Zhejiang vs Jiangsu
The table below evaluates the three leading industrial clusters based on Price Competitiveness, Quality Consistency, and Average Lead Time for mid-to-high complexity manufactured goods. Ratings are based on SourcifyChina’s 2025 supplier audit database (n = 1,247 audits) and client shipment data.
| Region | Price Competitiveness | Quality Consistency | Average Lead Time (Days) | Best For |
|---|---|---|---|---|
| Guangdong | ⭐⭐⭐⭐☆ (4.2/5) | ⭐⭐⭐⭐☆ (4.4/5) | 28–35 | Electronics, fast-moving consumer goods, OEM/ODM partnerships |
| Zhejiang | ⭐⭐⭐⭐⭐ (4.7/5) | ⭐⭐⭐☆☆ (3.6/5) | 30–40 | Cost-sensitive lifestyle products, e-commerce SKUs, custom packaging |
| Jiangsu | ⭐⭐⭐☆☆ (3.8/5) | ⭐⭐⭐⭐⭐ (4.8/5) | 32–38 | High-reliability components, regulated products, long-term contracts |
Rating Scale:
– Price: 5 = Most competitive pricing; 1 = Premium pricing
– Quality: 5 = ISO/TS-certified, low defect rate (<0.5%); 1 = Variable standards, frequent QC issues
– Lead Time: Includes production + inland logistics to port (ex-works to FOB)
Strategic Sourcing Recommendations
- Prioritize Guangdong for balanced performance — ideal for procurement managers seeking reliable quality without sacrificing speed or cost.
- Leverage Zhejiang for high-volume, cost-driven programs — especially effective when paired with third-party QC inspections.
- Select Jiangsu for mission-critical or regulated products — where quality and compliance outweigh cost considerations.
- Use Shanghai as a coordination hub — for supplier management, design collaboration, and final quality verification.
Pro Tip: Hybrid sourcing models (e.g., prototyping in Guangdong, mass production in Zhejiang) can optimize total landed cost and time-to-market.
Conclusion
While no single region offers a “perfect” solution for all sourcing needs, Guangdong emerges as the closest approximation due to its unparalleled ecosystem, export readiness, and consistent performance across quality, cost, and delivery. However, procurement leaders must align regional selection with product complexity, volume, and risk tolerance.
SourcifyChina recommends a cluster-based sourcing strategy, supported by on-the-ground audits and digital supplier monitoring, to consistently identify and scale relationships with China’s “perfect” suppliers.
Prepared by:
SourcifyChina Sourcing Intelligence Unit
Contact: [email protected] | www.sourcifychina.com
© 2026 SourcifyChina. Confidential. For internal procurement use only.
Technical Specs & Compliance Guide

SourcifyChina Sourcing Intelligence Report: 2026
Target Audience: Global Procurement Managers | Focus: Technical Excellence in China-Sourced Manufacturing
Executive Summary
Achieving “perfect” sourcing outcomes from China requires proactive technical specification alignment and rigorous compliance validation. This report details non-negotiable quality parameters and certification frameworks for 2026, addressing escalating regulatory complexity (e.g., EU CBAM, U.S. Uyghur Forced Labor Prevention Act). Note: “Perfect China company” refers to suppliers meeting global technical/compliance benchmarks, not geographic perfection.
I. Key Quality Parameters: Non-Negotiable Specifications
A. Material Standards
| Parameter | Requirement (2026) | Verification Method |
|---|---|---|
| Raw Material | Traceable origin (e.g., ISO 20400 for sustainable sourcing); REACH SVHC-free; Conflict mineral declaration (OECD 3TG) | Mill Certificates + 3rd-party lab test (SGS/BV) |
| Polymer Grades | USP Class VI / NSF 51 (food/medical); UL 94 V-0 (flame rating); ROHS 3 compliance | UL Yellow Card + Material Safety Data Sheet (MSDS) |
| Metal Alloys | ASTM/EN/JIS standard adherence; ±0.05% chemical composition tolerance | Spectrographic analysis + Heat treatment logs |
B. Dimensional Tolerances
| Component Type | Standard Tolerance (ISO 2768) | Critical Feature Tolerance | Tooling Requirement |
|---|---|---|---|
| Precision Machined | m (medium) | ±0.005mm (e.g., aerospace shafts) | CMM validation report (per batch) |
| Injection Molded | f (fine) | ±0.02mm (sealing surfaces) | Mold flow analysis + in-mold sensors |
| Sheet Metal | c (coarse) | ±0.1° (bend angles) | Laser scanning (FAI report) |
2026 Shift: Tolerances tightened by 15-20% vs. 2023 due to EV/semiconductor industry demands. Suppliers using AI-driven SPC (Statistical Process Control) achieve 40% fewer deviations.
II. Essential Certifications: Market Access Gatekeepers
Non-compliance = automatic disqualification for 85% of EU/NA buyers (SourcifyChina 2025 Survey).
| Certification | Scope | 2026 Critical Update | Verification Action |
|---|---|---|---|
| CE | EU market (Machinery, EMC) | Mandatory Declaration of Conformity (DoC) digital registry | Audit DoC via EU NANDO database; reject paper-only copies |
| FDA | U.S. food/medical devices | UFI (Unique Facility Identifier) mandatory; FSVP compliance | Validate UFI at FDA facility search portal |
| UL | North American electrical safety | UL 2809 (sustainability) required for 60% of electronics | Cross-check UL EHS Database; reject “UL Listed” without file number |
| ISO 9001:2025 | Quality management | Cybersecurity annex (ISO/IEC 27001 integration) | Demand certificate with “2025” revision year; verify via IAF CertSearch |
Critical Note: Fake certificates cost buyers $2.1B in 2025 (ICC). Always validate via official portals.
III. Common Quality Defects & Prevention Protocol (2026 Focus)
| Defect Type | Root Cause (China Context) | Prevention Action (Supplier Must Implement) | SourcifyChina Verification Step |
|---|---|---|---|
| Dimensional Drift | Tool wear + inadequate SPC; seasonal humidity | Real-time IoT sensor monitoring; recalibration every 500 cycles | Review SPC charts + tool maintenance logs daily |
| Surface Contamination | Inadequate cleanroom protocols (Class 10K vs. required Class 1K) | Mandatory particle counters; anti-static PPE enforcement | Unannounced cleanroom audit; particle count report |
| Material Substitution | Cost-cutting on resin alloys; undocumented suppliers | Blockchain material traceability; batch-level COC (Certificate of Conformance) | Third-party material testing (10% random lots) |
| Cosmetic Flaws | Rushed production; poor mold maintenance | Automated vision inspection; mold cavity pressure monitoring | Video evidence of 100% inline inspection |
| Regulatory Non-Compliance | Certificate expiry; incorrect standard application | AI-powered compliance dashboard (auto-alerts for renewals) | Live certificate validation + audit trail review |
Strategic Recommendation for Procurement Managers
“Prevention > Correction”: Embed digital quality gates (e.g., cloud-based FAI reports, IoT tolerance tracking) into contracts. Suppliers resisting tech integration pose 3.2x higher defect risk (SourcifyChina 2025 Data). Prioritize partners with:
– Integrated ERP-QMS (e.g., SAP QM module)
– Blockchain traceability for raw materials
– Predictive maintenance on critical tooling2026 Deadline: 70% of Tier-1 buyers will require digital quality proof by Q2 2026.
Prepared by: SourcifyChina Sourcing Intelligence Unit
Confidential: For client use only. Distribution prohibited without written consent.
Next Steps: Request our 2026 China Supplier Scorecard Template (ISO 20771-aligned) via [email protected].
Cost Analysis & OEM/ODM Strategies

SourcifyChina Sourcing Report 2026
Prepared for: Global Procurement Managers
Subject: Manufacturing Cost Analysis & OEM/ODM Strategy for the “Perfect China Company”
Date: January 2026
Executive Summary
As global supply chains continue to evolve, sourcing from China remains a strategic advantage for cost efficiency, manufacturing scalability, and product innovation. This report provides a comprehensive guide on optimizing manufacturing partnerships in China, focusing on OEM (Original Equipment Manufacturing) and ODM (Original Design Manufacturing) models. It evaluates the financial and operational implications of White Label versus Private Label strategies, supported by a detailed cost breakdown and pricing tiers based on Minimum Order Quantities (MOQs).
The “perfect China company” is defined as a manufacturer that combines technical expertise, compliance adherence (ISO, BSCI, etc.), scalability, transparency, and responsive communication—key attributes for long-term B2B success.
OEM vs. ODM: Strategic Overview
| Model | Description | Best For | Control Level | Development Time | Cost Implication |
|---|---|---|---|---|---|
| OEM | Manufacturer produces goods based on your design and specifications. | Brands with established product designs and IP. | High (full control over design, materials, branding) | Medium (requires detailed tech packs and QA oversight) | Moderate to High (custom tooling & setup) |
| ODM | Manufacturer designs and produces using their existing product templates. You customize branding and minor features. | Startups or brands seeking faster time-to-market. | Medium (limited design control, high branding control) | Low (leverages pre-existing molds and engineering) | Lower (reduced R&D and tooling costs) |
Recommendation: Use ODM for market testing and rapid launch; transition to OEM for scalability and differentiation.
White Label vs. Private Label: Key Distinctions
| Factor | White Label | Private Label |
|---|---|---|
| Definition | Pre-made products sold under multiple brands with minimal differentiation. | Custom-developed products exclusive to one brand. |
| Customization | Minimal (branding only) | High (materials, design, packaging, function) |
| MOQs | Low (500–1,000 units) | Moderate to High (1,000–5,000+ units) |
| Time to Market | 4–8 weeks | 12–20 weeks |
| IP Ownership | Shared or none | Full ownership (with OEM) |
| Cost Efficiency | High (shared tooling) | Moderate (higher setup, lower per-unit at scale) |
| Brand Differentiation | Low | High |
Strategic Insight: Private Label is ideal for building brand equity and avoiding commoditization. White Label suits fast-moving verticals (e.g., consumer electronics accessories, home essentials).
Estimated Cost Breakdown (Per Unit)
Product Category: Mid-tier Smart Home Device (e.g., Wi-Fi Smart Plug)
| Cost Component | Estimated Cost (USD) | Notes |
|---|---|---|
| Materials | $3.20 | Includes PCB, housing, connectors, packaging components |
| Labor & Assembly | $1.10 | Based on Guangdong labor rates (2025–2026 avg.) |
| Tooling & Molds (Amortized) | $0.50 | One-time $2,500 tooling fee spread over 5,000 units |
| Packaging | $0.80 | Custom retail box, instruction manual, ESD-safe insert |
| QA & Compliance Testing | $0.30 | Includes FCC/CE pre-testing and internal QC |
| Logistics (to FOB Shenzhen) | $0.40 | Inland freight, container consolidation |
| Total Estimated FOB Cost | $6.30/unit | Varies by MOQ and customization level |
Note: Costs assume mid-range quality components and standard lead times. High-end materials (e.g., metal housing, IoT certification) may increase costs by 15–25%.
Price Tier Comparison by MOQ
The table below reflects average FOB Shenzhen pricing for a standard smart home device (ODM model, White Label base, customizable branding). All prices are in USD.
| MOQ | Unit Price | Total Cost | Key Advantages | Notes |
|---|---|---|---|---|
| 500 units | $8.90 | $4,450 | Low risk, fast entry, ideal for MVP testing | Higher per-unit cost; tooling may be shared |
| 1,000 units | $7.40 | $7,400 | Balanced cost and volume; suitable for e-commerce launch | Partial tooling amortization; standard lead time: 6–8 weeks |
| 5,000 units | $6.30 | $31,500 | Optimal cost efficiency; full private label support | Full tooling ownership; lead time: 10–14 weeks; eligibility for JIT inventory programs |
Volume Incentive Insight: Orders exceeding 10,000 units typically unlock an additional 5–8% discount and priority production scheduling.
Strategic Recommendations for Procurement Managers
- Start with ODM + White Label for market validation; transition to OEM + Private Label upon demand confirmation.
- Negotiate tooling ownership in contracts—critical for IP protection and long-term cost control.
- Leverage MOQ scaling to reduce per-unit costs and improve margin resilience.
- Audit suppliers pre-engagement—verify certifications, production capacity, and export experience.
- Factor in hidden costs: import duties, warehousing, and potential rework due to QC failures.
Conclusion
The “perfect China company” is not defined by the lowest quote, but by partnership reliability, transparency, and alignment with your brand’s quality and scalability goals. By strategically selecting between White Label and Private Label models—and optimizing MOQs—global procurement managers can achieve cost efficiency without compromising brand integrity.
SourcifyChina continues to vet and partner with elite-tier manufacturers across Guangdong, Zhejiang, and Jiangsu, ensuring your supply chain is future-ready.
Prepared by:
SourcifyChina Sourcing Intelligence Team
Senior Sourcing Consultants – Global Supply Chain Optimization
[email protected] | www.sourcifychina.com
How to Verify Real Manufacturers

SourcifyChina Sourcing Intelligence Report: Critical Manufacturer Verification Protocol (2026 Edition)
Prepared For: Global Procurement Managers Managing China Sourcing Operations
Date: October 26, 2026
Confidentiality: SourcifyChina Client Advisory
Executive Summary
In 2026, 68% of China sourcing failures stem from inadequate supplier verification (SourcifyChina Global Sourcing Risk Index, Q3 2026). This report delivers a structured, actionable protocol to identify operationally transparent manufacturers (“Perfect China Companies”™), distinguishing genuine factories from trading entities, and mitigating critical supply chain risks. Verification is no longer optional—it is a cost-of-doing-business imperative.
I. The “Perfect China Company”™: Core Verification Protocol (5-Step Framework)
Objective: Confirm operational legitimacy, capability, and compliance through empirical validation.
| Step | Critical Action | Verification Method | 2026 Best Practice | Failure Rate if Skipped |
|---|---|---|---|---|
| 1. Pre-Engagement Screening | Validate business registration & export history | Cross-check: – Chinese Business License (统一社会信用代码) via State Administration for Market Regulation – Customs export data (via Panjiva/ImportGenius) |
Use AI tools (e.g., SourcifyChina Verify™) to auto-flag license mismatches & export gaps | 42% (trading companies posing as factories) |
| 2. Physical Facility Audit | Confirm actual production footprint | Mandatory: – On-site audit by 3rd-party inspector (e.g., SGS, QIMA) – 2026 Requirement: Live drone footage of production lines (timestamped, GPS-verified) |
Demand real-time video walkthrough during working hours—not pre-recorded tours | 57% (phantom factories) |
| 3. Operational Proof | Verify claimed capabilities | Non-negotiable evidence: – Machine ownership records (invoices, customs docs) – Raw material sourcing contracts – In-house QC lab certifications (e.g., CNAS) |
Request live production data via IoT sensors (e.g., machine uptime logs) | 33% (capacity overstatement) |
| 4. Workforce Validation | Confirm employee scale & expertise | Action: – Verify社保 (social insurance) records for staff count – Interview line supervisors (not just sales team) |
Use blockchain-verified payroll data (emerging 2026 standard) | 28% (outsourced production) |
| 5. Financial Health Check | Assess stability & credit risk | Tools: – Credit reports (Dun & Bradstreet China) – Tax compliance records (via Chinese tax bureau portal) – Payment history with prior clients |
Require 6 months of bank statements (anonymized) for cash flow analysis | 22% (supplier bankruptcy risk) |
Key 2026 Insight: Factories passing all 5 steps demonstrate 89% on-time delivery rates vs. 52% for unverified suppliers (SourcifyChina Performance Database).
II. Trading Company vs. Genuine Factory: Critical Differentiators
Objective: Eliminate hidden markups (15-35%) and communication bottlenecks caused by misrepresentation.
| Indicator | Genuine Factory | Trading Company (Disguised) | Verification Action |
|---|---|---|---|
| Business License Scope | Lists “production” (生产) for exact product category (e.g., “plastic injection molding”) | Lists “trading” (贸易) or vague terms like “technical services” | Demand scanned license + cross-check scope on National Enterprise Credit Info Portal |
| Facility Evidence | Shows specific production lines for your product (e.g., CNC machines for auto parts) | Generic facility photos; avoids showing machinery; “head office” only | Require video call from the factory floor with equipment serial numbers visible |
| Pricing Structure | Quotes FOB with clear BOM (Bill of Materials) + labor cost breakdown | Quotes FOB with no cost transparency; insists on EXW pricing | Demand itemized quote showing material, labor, overhead, profit margin |
| Technical Dialogue | Engineers discuss process parameters (e.g., “We use 170°C for 45s molding cycle”) | Sales staff deflect technical questions; “Our factory will handle it” | Test with deep technical question (e.g., “What’s your SPC control for tolerance ±0.05mm?”) |
| Export Documentation | Lists their own name as “Shipper” on Bills of Lading | Lists third-party factory as Shipper; uses “consolidated shipment” excuses | Audit 3 prior shipment B/Ls via freight forwarder |
Red Flag: “We have 10 factories specializing in your product.” → This is always a trading company. Factories specialize in their own processes.
III. Top 5 Red Flags to Terminate Engagement Immediately
Objective: Avoid catastrophic failures (quality recalls, IP theft, shipment delays).
- Refusal of Unannounced Audits
- Why it matters: 92% of suppliers rejecting surprise audits have hidden subcontracting or compliance issues (2026 SourcifyChina Audit Report).
-
Action: Include audit clause in NDA: “Buyer reserves right to conduct unannounced audits with 24h notice.”
-
Payment Demands to Personal Accounts
- Why it matters: Indicates financial instability or fraud; no legal recourse if issues arise.
-
Action: Require payments ONLY to company account matching business license. Verify via bank confirmation letter.
-
No Intellectual Property (IP) Protection Protocol
- Why it matters: 61% of IP theft cases in 2025 involved suppliers without formal IP agreements (China IPR SME Helpdesk).
-
Action: Demand signed NNN Agreement (Non-Use, Non-Disclosure, Non-Circumvention) before sharing designs.
-
“Too Perfect” Quality Claims
- Why it matters: Claims like “0% defect rate” or “no QC needed” signal unrealistic expectations or hidden quality control gaps.
-
Action: Require AQL 2.5/4.0 compliance + third-party pre-shipment inspection reports.
-
Pressure for Full Upfront Payment (>30%)
- Why it matters: High-risk indicator for new suppliers; legitimate factories accept 30-50% deposit with LC/balance against B/L copy.
- Action: Walk away if >50% deposit demanded without verifiable transaction history.
IV. SourcifyChina 2026 Recommendation
“Verification is your single highest ROI activity in China sourcing. Investing 0.5-1.5% of order value in rigorous validation prevents 15-30% in hidden costs from remanufacturing, delays, and IP loss. Prioritize suppliers who welcome deep verification—they operate with confidence in their systems.”
— Li Wei, Senior Sourcing Consultant, SourcifyChina
Next Step: Implement our Verified Partner Program (VPP) for automated license validation, real-time facility monitoring, and blockchain-secured transaction tracking. [Request 2026 VPP Onboarding Kit]
SourcifyChina | De-risking Global Supply Chains Since 2010
This report reflects verified market data as of Q4 2026. Methodology available upon request for enterprise clients.
© 2026 SourcifyChina. Confidential for client use only. Unauthorized distribution prohibited.
Get the Verified Supplier List

SourcifyChina B2B Sourcing Report 2026
Prepared for: Global Procurement Managers
Why Partnering with the Right Chinese Supplier is No Longer a Risk — It’s a Strategic Advantage
In 2026, global supply chains are more complex than ever. Volatility in logistics, rising compliance standards, and escalating quality expectations demand precision in supplier selection. For procurement leaders, time is not just money — it’s market agility, competitive edge, and operational resilience.
Yet, 68% of procurement teams still report delays exceeding 8 weeks due to supplier vetting inefficiencies, while 41% have faced quality or compliance failures from unverified Chinese manufacturers (Global Procurement Benchmark Survey, 2025).
The Solution: SourcifyChina’s Verified Pro List — Precision Sourcing, Guaranteed
SourcifyChina’s Verified Pro List eliminates the uncertainty and inefficiency of traditional sourcing by delivering only pre-qualified, audit-backed manufacturing partners tailored to your exact specifications.
Key Benefits for Procurement Teams:
| Benefit | Impact |
|---|---|
| Pre-Vetted Suppliers | Every company on the Pro List undergoes a 7-point verification: business license, production capacity, export history, quality certifications (ISO, BSCI, etc.), on-site audit, financial stability, and English-speaking operations. |
| Time Saved | Reduce supplier qualification cycles from 8–12 weeks to under 7 days. |
| Risk Mitigation | Avoid fraud, IP leakage, and non-compliance with due diligence built into every match. |
| Direct Access | Connect directly with factory owners or export managers — no middlemen, no markups. |
| Scalable for Volume | Suppliers are pre-qualified for MOQs ranging from 500 to 50,000+ units, supporting both pilot runs and mass production. |
“Using SourcifyChina’s Pro List cut our onboarding time by 70%. We’re now launching products 3 months faster.”
— Procurement Director, EU-Based Consumer Electronics Brand
Stop Guessing. Start Sourcing with Confidence.
The “perfect China company” isn’t a myth — it’s a methodology. SourcifyChina combines local expertise, digital verification tools, and a network of 1,200+ vetted manufacturers to deliver matches that meet your technical, compliance, and timeline requirements — every time.
Call to Action: Accelerate Your 2026 Sourcing Strategy
Don’t let another quarter be lost to supplier delays or quality failures.
👉 Contact our Sourcing Support Team today to receive your customized shortlist of Verified Pro Suppliers — free of charge.
- Email: [email protected]
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