The purchase of industrial equipment in China has become a standard practice for many Russian companies. The desire to optimize costs often pushes businesses to conclude direct contracts with Asian manufacturers, bypassing any intermediaries. However, such tactics, which promise imaginary savings, actually result in enormous financial and reputational risks. Experts warn that in the field of complex technical supplies, independence can cost companies tens of millions of rubles and delay the launch of critical production facilities.
Why are direct agreements with the manufacturer so dangerous? The fact is that the purchase of machine tools, production lines or special equipment is not a simple purchase of goods, but a full—fledged infrastructure project. Its success depends on many factors that are difficult to control remotely without having a representative office on site. The gap in technical standards, legal subtleties and customs administration features create traps for inexperienced importers.
The case of the Siberian Metallurgical Combine is a vivid illustration of the problems. The company has signed a direct contract with a factory from Wuhan for the supply of a rolling mill. The Chinese side provided a technical specification in English, according to which the equipment was manufactured. It would seem that everything went smoothly. However, upon commissioning, it turned out that the mill was incompatible with Russian power grids and control systems. The necessary pipes were missing, and the control interfaces required expensive adaptations. As a result, the expensive line was idle for six months, and the cost of its completion by Russian specialists exceeded 15% of the initial cost. Indirect losses from disruption of the production schedule were estimated at hundreds of millions of rubles.
Another common problem is working with unreliable contractors. A Russian manufacturer of automotive components has purchased a batch of modern CNC machines from a "manufacturing plant" in Ningbo. The deal seemed profitable, but after several months of intensive work, the key node, the main spindle, failed. When trying to use the guarantee, it turned out that the site belonged to an intermediary trading company, which simply changed the sign after receiving the payment. The real manufacturer of the equipment recognized the warranty case only after lengthy negotiations, which took four months. A simple production line during this period brought the company losses of tens of millions of rubles.
Customs clearance is a separate risk block. A large-scale industrial installation ordered by an engineering company has been stuck in the port of Vladivostok for a long time. The reason is trivial — incorrectly selected HS code and errors in the accompanying documents. Two months of downtime in a temporary storage warehouse, fines and payment for a stalled vessel resulted in additional costs for the importer, comparable to the cost of the cargo delivery itself.
In all these situations, disaster could have been avoided by employing a professional agent in China. His role as a far goes beyond a simple intermediary. Such a partner performs the functions of technical director on site. His tasks include conducting a deep audit of the manufacturing factory (due diligence), checking the availability of certificates and actual production facilities.
At the stage of concluding the contract, the agent ensures that the terms of reference comply not only with international standards (ISO), but also with specific Russian requirements (GOST). He controls the assembly process, conducts inspections and test runs, recording all stages. In the event of warranty cases, it is he who promptly organizes the departure of engineers and conducts an expert examination, seeking fulfillment of obligations. In addition, a professional builds secure settlement schemes using letters of credit or escrow accounts, which protects the buyer's funds until the delivery is successfully completed.
Thus, the decision to save on agent services when purchasing complex industrial equipment is extremely short-term and risky. The potential benefits of a direct contract are not comparable to the multimillion-dollar losses that may arise due to technical incompatibilities, legal conflicts, or customs issues. A reliable partner in China becomes not an expense item, but an investment in the safety and predictability of a large-scale project, ensuring its timely and successful launch.
