Below is a practical glossary of Chinese business terms, trade jargon and common acronyms that every importer, exporter and business traveller should know before doing business in China.
Top Chinese Business Terms & Acronyms for International Traders
Term Meaning Why It Matters
OEM Original Equipment Manufacturer Factory manufactures products under your own brand.
ODM Original Design Manufacturer Factory designs and manufactures products you can brand.
OBM Original Brand Manufacturer Factory sells under its own brand.
MOQ Minimum Order Quantity Smallest quantity a supplier will produce or sell.
RFQ Request for Quotation Formal request asking suppliers for prices.
FOB Free On Board Supplier delivers goods onto the ship at Chinese port.
CIF Cost, Insurance & Freight Supplier pays shipping and insurance to destination port.
EXW Ex Works Buyer collects goods directly from factory.
DDP Delivered Duty Paid Supplier pays shipping, customs and taxes to your address.
DAP Delivered At Place Supplier delivers goods but buyer pays import duties.
FCL Full Container Load Entire container belongs to one buyer.
LCL Less than Container Load Buyer shares container with other shipments.
B/L Bill of Lading Main shipping ownership document.
AWB Air Waybill Air cargo shipping document.
HS Code Harmonized System Code Customs classification code used worldwide.
COO Certificate of Origin Confirms country where goods were manufactured.
COA Certificate of Analysis Laboratory quality report.
MSDS / SDS Material Safety Data Sheet Required for chemicals and batteries.
QC Quality Control Inspection before shipment. QA Quality Assurance Factory quality management system.
AQL Acceptable Quality Level International inspection standard.
SGS Inspection & Certification Company Independent inspection service.
BV Bureau Veritas Global inspection company.
TUV TÜV Certification International safety certification.
CE European Conformity Required for many products entering Europe.
FCC Federal Communications Commission US electronic certification.
RoHS Restriction of Hazardous Substances Environmental compliance.
ISO International Organization for Standardization Manufacturing quality standards.
GMP Good Manufacturing Practice Common in cosmetics and pharmaceuticals.
GMP Factory Certified manufacturing facility Important for healthcare products.
Chinese Factory Terminology Chinese Term English
工厂 (Gōngchǎng) Factory
制造商 -- Manufacturer
出口商 -- Exporter
批发商 -- Wholesaler
经销商 -- Distributor
代理 -- Agent
中间商 -- Middleman
供应商 -- Supplier
买家 -- Buyer
卖家 -- Seller
样品 -- Sample
库存 -- Stock
仓库 -- Warehouse
产品 -- Product
包装 -- Packaging
集装箱 -- Container
港口 -- Port
报价 -- Quotation
合同 -- Contract
发票 -- Invoice
-- 收据 Receipt
Payment Terms Term
TT -- Telegraphic Transfer (Bank Transfer)
LC -- Letter of Credit
DP -- Documents Against Payment
DA -- Documents Against Acceptance
Escrow -- Third-party payment protection.
Deposit -- Advance payment
Balance -- Payment Remaining payment before shipment.
Manufacturing Terms
Production Line -- Manufacturing line
Assembly Line -- Assembly process
Raw Materials -- Materials used to manufacture goods
Prototype -- First sample before production
Mass Production -- Full production
Lead Time -- Manufacturing time
Production Capacity -- Factory output
Private Label -- Your own brand
White Label -- Generic product branded by buyer
Shipping Terms
Freight Forwarder -- Shipping company
Customs Broker -- Customs clearance agent
Export Declaration -- Chinese customs paperwork
Import Duty -- Customs tax
VAT -- Value Added Tax
Demurrage -- Storage charges at port
Detention Container return charges
Port of Loading (POL) -- Chinese departure port
Port of Discharge (POD) -- Destination port
Chinese Business Etiquette
你好 (Nǐ hǎo) -- Hello
谢谢 (Xièxiè) -- Thank you
欢迎 -- Welcome
合作 -- Cooperation
合同 -- Contract
公司 -- Company
老板 -- Boss
名片 -- Business card
微信 -- WeChat
名字 -- Name
电话 -- Telephone
Factory Visit Vocabulary
Showroom
Production workshop
Warehouse
Loading dock
Quality inspection
Packaging department
Export department
Sample room
Research & Development (R&D)
Engineering department
China Trade Fair Vocabulary
Canton Fair
Yiwu International Trade Market
Global Sources Fair
China Import & Export Fair
Exhibitor
Booth Number
Catalogue
Product Brochure
Factory Visit
Sample Order
Common Business Abbreviations Acronym Meaning
ETA -- Estimated Time of Arrival
ETD -- Estimated Time of Departure
POD -- Proof of Delivery
PO -- Purchase Order
PI -- Proforma Invoice
CI -- Commercial Invoice
PL -- Packing List
SKU -- Stock Keeping Unit
UPC -- Universal Product Code
GTIN -- Global Trade Item Number
RMA -- Return Merchandise Authorization
ERP -- Enterprise Resource Planning
CRM -- Customer Relationship Management
B2B -- Business to Business
B2C -- Business to Consumer
C2C -- Consumer to Consumer
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Last updated on 02/02/2026
