When doing import-export, we often collaborate with people we are not familiar with and even never meet in person. Our business nonetheless depends on every link in the supply chain doing its job properly. In international trade, only large companies with worldwide offices can afford enforcing contracts and agreements. We small businesses can bind our suppliers with as many contracts as we want, the success ultimately depends on how well we initiate and maintain relationships. Because let's face it, in case of trouble a legal action would generally not be cost-effective.

An example...

The goods you ordered in Shanghai are supposed to leave tomorrow by boat. The boat is full but then another freight forwarder with good relationships (guanxi) calls the transporter. Suddenly, your precious container is unloaded and replaced by a container of the well-introduced freight forwarder. As an importer recently told me: "this happens a lot in China". Your supplier calls you next day and is very, very sorry to tell you that you'll have to wait for next week's shipment. It can be devastating for your business. And you can do nothing about it.

Actually, you can do something so that it doesn't happen: make sure you have good relationships or delegate the work to someone who has good relationships locally. For example, it would be wiser to let your supplier finding a freight forwarder by himself (using CIF instead of FOB incoterms) because he probably has better local connections. Of course this might not be realistic, so your only solution to mitigate risk is to plan some slack for delivery times. Oh, and do your due diligence, too. There's a lot of monkey business going on out there.