Purchase Orders and Contracts with Chinese Suppliers

A booth conversation and a handshake aren’t a contract — once real money and production are on the line, the specifics need to be written down and agreed by both sides, in enough detail that a disagreement later has something concrete to be resolved against.

What a purchase order actually needs to cover

Exact product specification — materials, dimensions, and any customisation, precise enough that “roughly what we discussed” isn’t the standard either side is working from.
Quantity and unit price, with the total value stated clearly.
Payment terms — the deposit and balance split, method, and timing, matching whatever you agreed on the payment-safety page.
Production and delivery timeline, with a specific date or date range, not a vague estimate.
Quality standard and inspection terms — what happens if the goods don’t match the agreed specification, and who inspects before shipment.
Shipping terms — covered in more detail on the FOB versus CIF page, since this determines who’s responsible for what once goods leave the factory.

Why this protects the supplier too, not just you

A clear written order protects a legitimate supplier from a buyer who later claims the goods don’t match an agreement that was never actually specified — precision cuts both ways. A supplier confident in their own process generally welcomes this rather than resisting it.

Reluctance to document terms is itself a signal

If a supplier pushes back on putting specifics in writing, or keeps steering the conversation back toward “trust” instead of a document, treat that reluctance as meaningful information. Routine international trade runs on written terms as a matter of course; avoiding them isn’t a sign of an easy, informal relationship, it’s a sign of one with no recourse if something goes wrong.

Matching the level of formality to the order

A small, low-risk reorder from an established relationship doesn’t need the same document weight as a large first order with a new supplier — use judgment, but err toward more documentation the larger and less familiar the deal is.

What’s next

Understand the shipping terms your order should specify, or set the quality standard your purchase order should reference.

Frequently asked questions

Is a verbal agreement at the booth enough to place an order?

Not for anything beyond a trivial amount — a verbal understanding at a booth is a starting point, not a substitute for a written purchase order once real money and production are involved. Get the specifics in writing before any deposit moves.

Does a purchase order need to be a formal legal contract?

Not necessarily a heavyweight legal document for every order, but it does need to be a clear, written record both sides have agreed to — specification, quantity, price, payment terms, and delivery timeline, at minimum.

What happens if a supplier doesn't want to put terms in writing?

Treat this as a significant warning sign. A legitimate supplier doing routine business has no reason to avoid documenting the terms of a deal clearly, and reluctance here often precedes exactly the kind of dispute a written agreement would have prevented.