Published by ChinaMNC · Huating

First Self-Operated Export of Pingliang Apple Freeze-Dried Crisps to the U.S.: A Practical Guide for Foreign Founders

Learn from the first self-operated export of freeze-dried apple crisps from Jingning County to the U.S., and discover practical steps for foreign founders setting up and operating a company in China to engage in similar export activities.

Introduction

On October 27, a shipment of 5,000 bags of freeze-dried apple crisps, produced by Jingning County Longyuanhong Fruit Distribution Co., Ltd., was loaded and dispatched from Chengchuan Town for export to Los Angeles, USA. This marked the company's first self-operated export, with a total value of over 40,000 yuan. For foreign founders considering company registration in China or those already operating a business in China, this case offers valuable insights into the export process and the support available for agricultural products.

Background of the Export Deal

The export deal was facilitated during the Lanzhou Investment and Trade Fair in July this year. An American client compared products from multiple suppliers in Shandong, Shanxi, and Shaanxi provinces, and after comprehensive considerations of price, taste, and source, ultimately chose Longyuanhong as the partner. This demonstrates that Chinese agricultural products can compete globally when quality and value are prioritized.

Details of the Shipment

According to Wang Zhanjia, head of Longyuanhong, the order consists of 5,000 bags with a value of over 40,000 yuan, and it is a continuous order. The company plans to address shortcomings in deep processing, streamline production and sales, maintain existing overseas supply channels, and steadily expand export business. For foreign founders, this highlights the importance of building reliable supply chains and understanding local production capabilities.

Value Addition through Freeze-Drying

Freeze-drying technology transforms the raw material advantages of Jingning apples into product and market advantages. From a single apple to a bag of freeze-dried crisps, the product form changes, the industrial chain extends, and the industry value increases. Guided by market demand and rooted in quality raw materials, the Jingning apple industry is continuously enriching its processing categories, expanding its product matrix, and enhancing market competitiveness, pushing deep processing to a higher level.

Government Support and Implications for Foreign Founders

Yan Yanni, a cadre from the Foreign Trade Section of Jingning County Commerce Bureau, stated that this successful export of freeze-dried apple slices achieved a zero breakthrough for the county's deep-processed apple products to the U.S. market, marking a new stage for Jingning apples from fresh fruit export to deep processing and high-end overseas expansion. The Commerce Bureau will continue to provide service guarantees around enterprise export needs, help local quality products explore international markets, and promote the quality and efficiency of the county's foreign trade.

For foreign founders, this underscores the importance of engaging with local commerce bureaus and understanding available support mechanisms. When establishing a company in China, especially in sectors like agriculture or food processing, leveraging government resources can ease market entry and expansion.

Practical Steps for Foreign Founders

Based on this case, here are practical steps for foreign founders looking to register a company in China and engage in export:

• Choose the right location: Consider regions with strong agricultural or industrial bases, like Jingning County, where local governments actively support exports. Registering your company in such areas may provide access to incentives and support.
• Understand export regulations: Ensure compliance with Chinese export laws, including customs procedures, quality inspections, and documentation. The self-operated export model requires the company to handle these processes directly, so it's crucial to have a team or partner familiar with the requirements.
• Build local partnerships: Collaborate with local producers and suppliers to secure quality raw materials. In this case, the American client compared multiple suppliers before choosing Longyuanhong, emphasizing the need for reliable sourcing.
• Leverage trade fairs and government events: Participate in events like the Lanzhou Investment and Trade Fair to connect with potential partners and learn about market opportunities.
• Invest in processing technology: As seen with freeze-drying, value-added processing can significantly enhance product competitiveness and open new markets. Consider investing in technology that aligns with market trends.
• Engage with local commerce authorities: Reach out to commerce bureaus for guidance on export procedures, market information, and potential support programs.

Challenges and Considerations

While the export was successful, the company acknowledged the need to improve deep processing and streamline production and sales. Foreign founders should be prepared to address similar challenges by conducting thorough market research, securing sufficient capital, and building a skilled team. Additionally, understanding cultural and business practices in China is essential for smooth operations.

Conclusion

The first self-operated export of Jingning apple freeze-dried crisps to the U.S. illustrates the potential for foreign founders to succeed in China's export market, particularly in value-added agricultural products. By following practical steps, leveraging local support, and learning from such cases, founders can navigate the complexities of company registration and operation in China.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535. Our team is ready to help you navigate the process and seize opportunities in China's growing market.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.