Hi There
I've done a bit of importing and manufacturing of products in the past with China/Taiwan. This is what I would add:
1. Be explicit, if you don't ask it the cheapest will be assumed. I made the mistake years ago to assume just because a sample was made with the top grade of plastic, that the actual would be too. Its kind of the same as working with an Indian software house. You have to spec out exactly what you want and be very specific.
2. Visit the factory
I can't stress this enough. If you're spending anything that could put you at risk then go out there and check them out and see who else is there too as there are loads of places you can go visit. The factories sometimes even put you up and you can stay and develop products with them and the cost of a flight and a few beers might save you thousands in the end. We went to a place in Taiwan and it ended up being a flat in a tower block and was very shady. We had no idea.
3. Someone else mentioned this but I would also stress that you hire a local translator, preferably with some knowledge and no affiliation to the manufacturer/place you're dealing with. Chinese culture, including business culture, is very different to that in UK so you need someone who can deal with this and the language gap.
4. Learn some Chinese. Be polite, learn a bit about the culture and learn a bit of chinese as if you are seen to make an effort it can go down very well indeed. I learnt some basic words, thank-you's etc and I got some special business cards made up with some Chinese on the back, a neighbour helped me but just pop in to your local Uni and place an ad on a board for help. It went down a storm and over dinner I was in fact told how much of an impression I made where other English companies were seen as a bit arrogant in their approach.
5. I would also check out a well established trade fair like
www.globalsources.com. Yes they're a bit main stream now but you can go to the fairs for free 'where you can talk face to face with b usinesses form China and you can learn a lot. They hold free seminars for newbies and paid for ones too.
Hope to have helped.
Dave