Tag Archives: china

HOW TO: China import/export permit and company bank

via Dangerous Prototypes

import-export

Last week we described the painful process of opening a Chinese company. That was actually the fast and easy part. There’s still a pile of paperwork and months of waiting ahead. This week we look at the proper, and improper, ways to export from China.

A Chinese import export permit is permission to exchange foreign money to Chinese RMB, and refund sales / VAT tax on exported products. Imports, exports, and foreign currency exchange are attached to your permit number. Any trader operating in China without one is illegally exporting and violating the currency control laws, and is not a reliable supplier in our view.

Our license was handled by an agent, we literally did nothing but hand over the company documents. It took about a month and cost around 5000RMB ($900USD). It isn’t hard to get, but is difficult to use for small scale stuff. Our giant CPA firm even botched our first attempt to get a VAT tax refund. Continue below for more on the right and wrong way to export from China, and a summary of the crisis that almost ended our Chinese company this week.

How to export from China. The legal way. 

This is the biggie. It took lots of trial and error, but to the best of our knowledge this is the proper way to export products from China and receive payment in foreign currency.

1. Receive foreign currency (USD,EUR, etc) payment by wire to the company bank account

2. Go to the bank, show an invoice for products and the import export permit

3. Money is converted to RMB. The amount and purpose is reported to government

4. Purchase products and get the official ‘fapiao’ VAT tax receipt

5. When the products leave China get a stamped export declaration form from the shipper

6. Take the VAT tax receipt and export declaration form to the tax office to rebate the 17% VAT tax. Many people skip this step. It is quite a hassle with very specific timing requirements. Unless you ship a container load of the same thing, or something very expensive, it is generally not worth the effort to get a VAT refund

7. Give the export declaration form to the accountant. The government will audit to see if the amount of currency converted to RMB matches the products exported

The tricky thing is the export declaration form. It is not a simple commercial invoice or proof of shipping. It has to come from an authorized authority with the correct stamp. It costs 300RMB ($50USD), and you need one for each package exported!

export-proof

For example a simple 5x5cm $14 Dirty PCBs order. To convert that payment to RMB to pay the factory and refund the 17% VAT we need an export declaration form that costs $50 for this order alone. Unpossible.

Why are we still doing this?

So how do you deal with this? Hong Kong company to the rescue! Instead of shipping individual orders directly to hackers from China, we export the PCBs in bulk to Dangerous Prototypes Limited Hong Kong. For a while it looked like we had to rent a warehouse in Hong Kong and hire people, but eventually we found a service to do it for us.

Xiao Tang packages PCBs into boxes and puts on all the postage labels in China. A logistics company picks up the boxes, imports them to Hong Kong as a single shipment, and drops them at the post. They charge 300RMB to handle the customs export inspection and prepare an export declaration form. Now we can exchange money to pay suppliers and refund VAT.

It seems like Seeed Studio has had to make big changes to comply with this in preparation to go IPO. Small(er) Chinese companies have a different standard of accounting and compliance requirements, but when you take a bunch of government money and prepare for public listing many more rules apply.

We’ve noticed our stuff go out of stock at Seeed a few times recently, evidently while they move between Hong Kong warehouses. Our guess is they had to ship all or most of their stock to Hong Kong to refund the VAT and get the export declaration form required to exchange currency.

We’re a WFOE, which means we are held to the highest standard from day one.

How to export from China. The wrong way.

There’s a number of loopholes and unsavory practices foreign and Chinese agents use to circumvent the currency control system.

The process we describe above is only to pay for products. Payments for services can be converted with a simple invoice. So a small Chinese company might do a production run of 100 PCBs, but bill the client for consulting services. This seems so widespread for small stuff that bankers and accountants openly encourage it.

Each individual can freely convert $50,000USD to RMB each year. According to our CPA, around 70% of foreign business with Huaqiangbei market traders is paid to the boss’ personal account. This way the boss avoids paying VAT, and they don’t need an export declaration form to convert foreign currency to RMB. We won’t pay suppliers this way until a lawyer says it is actually legal to convert funds for business. Even if it is legal, $50,000 doesn’t go far for any sizable production.

A variant on the above is to recruit Chinese people to “rent” you their yearly allotment. You wire $50,000 to their account and they keep a percentage. This is so fraught with risk and uncertainty it hardly seems like a way to run a company, but it does seem like a good way to have your money stolen…

Importing

No experience here yet, but some general observations.

The import export license can be used to import and pay taxes on stuff coming into China. For example microcontrollers. Tax is generally 17%, and can be refunded when the chips are exported in a finished product. It is a bit of a hassle, especially for a small production run, but it is very doable.

In practice, almost everyone doing production in China has some variant of a story where they smuggle chips into the country in a backpack, pants pocket, etc. Foreign engineers becoming smugglers and tax cheats, over a 17% tax that’s refundable.

Supply chains are delicate enough already, you want to throw SMUGGLING into the mix!?!? Do you want your production held up for a month while you re-source chips because you got busted smuggling them into China to cheat a 17% tax? Then DON’T SMUGGLE!

Always ask your Chinese supplier for a copy of their import export license! It is at least moderate assurance your money won’t be stolen on the way into the country, and that your products won’t be confiscated on the way out.

Open a company bank account

cmb-logo

So after months and months of work we finally have a Chinese company! But wait, it isn’t really useful with out a bank account that can convert foreign currency to RMB. This took nearly three more months.

Here’s the strange thing: Chinese banking rocks. Fees are non-existent or super duper low. Foreigners can walk in off the street, open a personal account, get an ATM card on the spot, and sign up for internet banking, all for free with a small initial deposit (~$20USD, ~120RMB).

Business banking is a whole other thing. First we went to Bank of China, cause, you know, they’re huge and international. They wanted to schedule a call in a week to setup an appointment for next month, not ok. We visited PingAn, ICBC, Communications Bank, and a few other smaller banks that weren’t even licensed to work with foreign owned companies.

Eventually we landed with China Merchant’s bank, simply because they would actually meet with us. Pro tip: choose a bank close to home or office, you or your employees will be spending a day a week there for as long as the company operates. Almost every major transaction needs to happen in person.

bank-cert

After more than a month we received permission to open a bank account from the People’s Bank Of China central banking authority. At this point the import export permit was finished and we entered another month of waiting for approvals before the account was open.

Capital injection

verification

Even with a bank account and import export license we still can’t run the damn company. We have to “inject” the 400,000RMB of capital, then convert it from USD to RMB.

operatingexpenses

The 400,000RMB in foreign currency is wired from the business owner, the HK company, to a special single-use capital injection account. When the money arrives, appear in person to convert up to 300,000RMB per day for operating expenses.

If you want to withdraw and convert capital to pay a supplier, say for PCBs, you have to submit already-paid tax receipts. Our accountant describes this as an “incomplete system”: you can only use company money to buy products, but you can’t get company money until you can prove you paid for the products and taxes. We had pay for stuff with personal money pulled from an ATM machine so we could get the tax receipts so we could get money out of the company. Which came first: the chicken or the fapiao?

Online banking

cmb

China Merchant’s Bank has reasonably workable English (likely Windows only) crapware for managing accounts. It comes with two USB certificates, one for the accounting department and one for the administrator.

Each transfer is first entered by the accounting department login, then the administrator has to login and approve. It’s pretty burdensome for a small business.

enough-fun

At least the developers seem to care about the user experience. “Check if there is enough fun”. Indeed.

For the big ones, not the small ones

One theme that keeps popping up: China is still built for big business. The plus side is a real company with real no-bull expenses and tax deductions. But, while the bank software would be great for an organization of 100+, but it stinks for a couple hackers who want to export a few PCBs. Similarly, it is easy to export a shipping container load of stuff, refund VAT, and convert payment to RMB, but you gotta hack the system to ship a $14 PCB order.

Maybe this is why such a large gray market export economy is allowed to thrive in China. Foreign and local agents are exporting products, which China encourages, but the system is incomplete and overly burdensome for small companies and individuals to be fully compliant.

A blind eye approach could be much more effective than reworking the whole system. After all, currency control largely exists to prevent big (foreign) interests from speculating and manipulating the Chinese economy. The spirit of the law isn’t to bust an eBay Arduino seller for illegal exports.

Wrap-up

For those of you following along on WeChat #shenzhen_hacker_bei, some of this might seem familiar. We reviewed our business plan with the accounting firm multiple times, but still had a moderate crisis last week.

The accountant specifically told us, in writing and on multiple occasions, that a fapiao tax receipt was sufficient to get a VAT refund. We show up with fapiaos from the PCB factory for a refund. They pull out the example export declaration form – no refund without it, and by the way, no currency conversion either. It was obvious our accountant simply had not done it before. Rather than ask the head CPA, she just parroted incorrect conventional wisdom from her colleges. Idiots.

For most of the week we thought we were tanked. After multiple visits with lawyers and accountants we pieced together the full picture described in this post, and it seemed impossible to continue without renting a Hong Kong warehouse.

Yesterday we finally found the logistics agent willing to handle the export for us and provide an export declaration form. Hopefully these extended write-ups save someone anguish in the future.

Company. Check. Import export license. Check. Bank account with money. Check and check! But wait! We still need the work permit and residency permit! Add another 2 months before we can actually run the company. More on that process next week.

 

HOW TO: Start a Chinese Company

via Dangerous Prototypes

foreign-invest-cert

While Shenzhen is becoming “Hollywood for Makers”, and not always in a good way, there don’t seem to be a lot of foreign open hardware/maker/start-up/accelerated/innovated/incubated people starting Chinese companies. As far as we know, we are the first foreign owned open hardware centric Chinese company in Shenzhen. With everything going on here, we definitely wont be the last.

There are three reasons foreigners start a Chinese company: to sell to China’s domestic market, to get legal residency, and to work with small suppliers who can’t accept foreign currency. We are only interested in the latter.

Working with a controlled currency

rmb-note

Chinese RMB is a controlled currency. Money only goes in and out of China for certain purposes, in allowed amounts, with the proper license. Most small Chinese suppliers don’t have an import/export license (and dodge taxes) so they can’t convert payments made in a foreign currency.

compression-molding

That’s why it is almost impossible for you, from abroad, to work with the small, flexible, inexpensive Chinese suppliers we have access to. If you really want to make small scale supply chain mash-ups, say 100 traffic-themed adult novelties, then tiny suppliers are crucial and they must be paid in RMB.

Our solution has always been to partner with a Chinese owned local company like Seeed Studio and FlyLin Consulting to handle our ground operation in China. Now we can pay small suppliers directly.

There are also tons of illegitimate Chinese and foreign agents in Shenzhen who do all kinds of exploitative things to circumvent the currency control system and bring money into the country. We now tell everyone: don’t work with someone in China until you see their import-export license!

Fight zombie lies

HKnotCN

Before we continue, lets take a moment to address a pervasive, zombie myth that rings constantly at every start-up meet-up in town: a Hong Kong company is NOT an alternative to a Chinese company. Despite what agents and drunken foreign start-up groupies tell you, you’re not gonna be wiring RMB into China with your new HSBC Hong Kong account.

This is so obviously false and stupid on every level – if Hong Kong had exemption to the currency control wouldn’t every rich Chinese person setup a  company to funnel money in and out? Yet everyone orbiting the start-up scene will proudly and confidently lay it out like they’re skilled insiders. Morons.

WOOF WOOF WFOE

linlin-office

Officially our company is a WFOE, a Wholly Foreign Owned Enterprise. A simpler, cheaper structure called a FIPE is becoming more common with young entrepreneurs, but we understand it to lack liability protection. Foreign Owned doesn’t refer to us, it actually refers to the Hong Kong holding company that owns the WFOE.

fapiao

WFOE is a massive beast of a company. It files a full audit report every month, it must have a minimum size office, and every single penny of expense must have a government tax receipt (fapiao, above) attached.

Its a real company and its does have some cool advantages over an US-based LLC. We draw actual salary, and personal housing is a 100% tax deductible expense for the company. Profits can be remitted to Hong Kong as dividends and taxed as capital gains, if you’re into that kinda thing. While it may take a year to setup and cost as much as a small car, there are advantages if you actually live and work and run a company in China.

Hold me tight – start a holding company

You can own a WFOE personally, but it is seriously difficult to sell shares or take on partners, and there are massive tax issues.

hong-hong-city

Instead, open a Hong Kong company first, then the Hong Kong company starts the WFOE. There are certain tax benefits for remitting profits back to the Hong Kong company, but we haven’t done it and can’t comment yet. This is our structure, and we understand it to be the same structure Seeed is now using while preparing for IPO. Image source.

The Hong Kong company is quick and easy. Setup takes a week and costs around $700-$1000USD. Supposedly you can DIY, but we tried and eventually used an agent. Beware – the Hong Kong company requires an annual audit by a CPA ($500-$1000) and a registered secretary to file the annual report ($700).

HSBC

Opening the Hong Kong company bank account is simple, but you’ll need an appointment and it will take 2-3 weeks to be approved. We use Hang Seng, but would prefer to have gone with HSBC cause, you know, they print the freaking Hong Kong money. It is helpful to take some invoices or contracts to prove you’re a real company. Monthly fees around $60.

hangseng-onlinebank

The account can hold any currency, and you can exchange between almost any currency online, pretty cool. International wires are done online and cost about $35-$40USD.

Prove you understand basic tax principals

Hong Kong has a reputation as a tax haven. Sure, if you’re a legal resident personal taxes are pretty low, but that’s not much use to a foreigner with a small business.

Corporate tax is 16.5%, but your accountant won’t let you leave profit in the company so you’ll never pay corporate tax anyways! Same with Dangerous Prototypes’ US LLC, a pass-through entity isn’t even taxed! You’ll pay personal income tax in your country of residence, however much that is. Americans are also taxed on world wide income even when paying taxes as a legal resident of a foreign country. Get it?

If someone tells you about low tax Hong Kong companies just walk away, they’re a moron.

Choose your sleazebag agent

Agents are incompetent, sleazy, misinformed, and the absolute worst part of starting a Chinese company. There’s really very little opportunity to DIY a WFOE, so you’ll have to deal with them.

We interviewed 6 agents. Initially we hired the Chinese firm that did the Hong Kong company, but they hadn’t really done a WFOE before and the requirements are too numerous and fluid to leave it in the hands of an amateur. We fired them.

Next we hired a foreign guy who always seemed to have the answers we needed. He was super slimy and went on about having face (connections) and being the fastest in town, a total turn off, but he did seem to know the process.

Our agent misguided us multiple times, delaying the formation and costing money. The agent messed up really obvious and stupid stuff. We felt like he had never done a WFOE before either. Turns out, that was close to the truth. He subcontracted the paperwork to another local agent (Aaron Best), who actually presented at the first Hacker Camp…

sz-credit-registration

Eventually we looked up the agent’s company registration. It isn’t even a WFOE. It appears he had two Chinese people start the company so he wouldn’t have to put up the 10 million RMB capital he registered. If you’re talking to an agent in Shenzhen, be sure to look up the company on the official SZ government business listing to confirm who you’re working with. Here’s our registration.

The agent said the company could be done in a month, but in all it took 4-5 months to complete this initial setup phase. Much of the delay was our own complicated situation because we’re an existing, functioning company. A competent agent would have foreseen and guided, instead ours made everything much, much worse. We paid the guy $7000, which includes lots of government fees.

Get your stuff together

Capital

capital-injection

Up until this year you needed 500,000RMB ($81,000USD) of actual cash to start a trading WFOE. There are no hard limits now, but you have to convince the government you can run your company for a year with that amount.

Everyone says minimum 100,000RMB if you want a work visa. Agents terrified us with likely untrue anecdotes about being deemed unfeasible, so we put up 400,000RMB fully paid. Supposedly this is enough to get 4-5 work permits for foreign hackers to work in our Shenzhen office, but who knows if that’s really true.

You need to prove that you have the full amount, but only 20% needs to be transferred up front. The remaining 80% can be paid over the next 2 years. At least that’s what they say, it seems really unfeasible for a small company because each payment takes weeks of processing documents and updating licenses.

bank-reference

A bank reference letter and a certified balance statement prove you have the capital. Hang Seng’s phone bank sent us to the nearest branch to apply in person, somewhat conveniently located in the bank district of a dusty little boarder town called Sheung Shui. The first Hong Kong metro stop outside China.

The banker insisted, INSISTED, there was no such thing as a bank reference letter OR certified balance statement. After 10 minutes of begging, they uncovered the form for the reference letter, but not the balance statement.

More begging and pleading, but they insisted that there was no such thing and threw us out.  The next day the phone banker sent us the form by email to print and take to the branch. Got the same guy, but no apology for making us schlep back to Hong Kong a second time.

Both letters run about $50 each, and are available for pickup after 10 business days.

Director documents

secondpassport

The director of the company needs to supply a passport. The passport will be out of reach for a reasonably long time, many months, so it is absolutely critical that you get a second valid passport if allowed in your country. It is quite easy in the US, all the Shenzhen regulars seem to have them.

The passport will need to be authenticated. The deal here is that China is not part of the Apostille Convention that defines how most countries translate and verify documents.

Authentication is a 1900s era flair of ribbons and wax stamps. The US State Department verifies the passport and makes a copy. The Chinese embassy in the US verifies the State Department copy with a ribbon.  Back in China the government verifies the embassy ribbon with a wax stamp. Or something like that. $1000USD for this frilly anachronism.

Hong Kong company documents

hk-greenbox

All the Hong Kong company “green box” stuff needs to be authenticated by a lawyer (7000HKD/$1000USD). If you have a brand new Hong Kong company the documents are already authenticated, but ours was a year old and it all had to be redone.

hk-greenbox-hack

Speaking of green box, we added a magnetic reed switch and RGB LEDs to ours. Nothing says “business” like a company box with a party mode to celebrate the signing (chopping) of a contract. So far bankers and lawyers don’t seem to find it as amusing as we do.

hkvisa

Expert tip: when signing documents in Hong Kong a copy of your entry visa slip is required. If you’re smart and have the second passport you MUST enter Hong Kong on the passport used to register the Hong Kong company. Our agent neglected to tell us about this, so we had to make two trips.

audit-report

If the Hong Kong company is more than a year old China wants to see an audit report completed by a CPA. Hong Kong companies are required to file an audit report with the Hong Kong government every year anyways, but as a little perk the first is due after 18 months. Everybody knows this, all the agents use it as a selling point.

Dangerous Prototypes Limited (HK) fell into the gap – not old enough to need a report in HK, but old enough to need one in China. Instead of pointing this out and helping us deal with it, our idiot agent said our accountant had failed to file the report on time and we would have to pay fines and could even go to jail. He got us whipped up into a frothy lather and scared the hell out of us.

Nope, just needed to get the audit report done early. The audit took two weeks and cost about $500USD from a Chinese accounting firm with an office in Hong Kong. Submit a Google-translated Chinese copy of the report as well.

Officespaced

office-door

A WFOE office must be at least 30 square meters in commercial zoned space, not an apartment. Agents terrified us with myths about inspections, verification, losing visas, and bribing inspectors, so we were needlessly married to having a big office in Huaqiangbei.

HQB-map

We looked at a lot of offices in three buildings. SEG at the south, the Mr. Goodluck Buy building (not actual name) mid-market, and Galaxy Stars building at the North of the market. Offices run about 100RMB per square meter, plus building fees and tax.

seg
The office is going to sit empty for half a year while the company is formed, so we wanted to pay about $1000USD per month (6000RMB). There were lots of too small offices in the 4000RMB range, and there were lots of really big multi-room offices for 10,000RMB+, but not a whole lot for us.

mrgoodluckbuy

The Mr. Goodluck Buy building is unique. Its owned entirely by one company. That’s easier for a WFOE to work with, and there’s no charge for upgrading to a bigger office in the same building later.

qunxin

We ended up in Galaxy Stars Plaza, the building at the very north end of the market with a helicopter landing pad. No, we haven’t been to the helipad. Yes, we’ve tried. Several times.

Galaxy Stars is the Chung King Mansion of Huaqiangbei offices, a Mos Eisley Cantina of little Chinese trading companies. Perfect place for us, and our logistics company is just a floor below.

office

Initially we had rental agents show us space, but they run you all around unable to get inside any of the offices. Its a joke. Asking the security guard on duty to show us around was much more effective. He found us a perfect 52 square meter office for 6000RMB/month including fees and taxes.

building-tax

The contract needs to say that the owner allows the office to be used for a WFOE. Everyone exchanges ID copies, and they hand over a copy of the building tax license. The contract needs a realtor stamp to be official, the guard found someone to provide it.

China’s clean government

National_Emblem_of_the_Peop

One theme throughout the formation process is that agents tell myths, stories, legends, “conventional wisdom”, and seemingly outright lie about stuff. One agent came into our office and said it wasn’t big enough, he was confident the work visa officer would review the floor plan and ask for a bribe. Image source.

Never, during this entire process, was there even a HINT of corruption in the Shenzhen government. Absolutely everything was by the books and squeaky clean. Follow the rules, file paperwork, wait, repeat. There wasn’t even a remote opportunity for something improper to happen.

Part of our motivation for writing this in such long form is to show how clean the experience was. The only corruption and incompetence we experienced was from agents.

The numbers man

An accounting firm is mandatory. The amount of paperwork they file monthly is epic.

China has two levels of sales tax/VAT. A small tax payer pays 3% VAT on everything purchased, and it cannot be refunded when things are exported or sold.

A general tax payer owes 17% VAT on everything they buy, but the tax is refunded when the stuff is exported out of China.

We have been both, currently we’re general tax payers and that was a horrible, horrible mistake. We haven’t done a VAT refund from exporting PCBs yet, it will be interesting to see what happens.

Accounting prices are the same all over town. 400RMB ($70USD) per month for a small tax payer, 1100RMB ($180USD) for a general tax payer. 50RMB ($9USD) per month per Chinese employee, and 150RMB ($29USD) per month per foreigner. Our accounting firm is acceptable, if a little lazy.

The process

complete-docs-pile

Got all that stuff now? It took us 3 months to get everything in order before filing the first document with the government.

Name check (2 weeks)

name-search

Submit a bunch of Chinese names, the government will pick their favorite. There are all sorts of naming rules. Ours shook out to Shenzhen Hanging from the Cliff’s Edge Electronics Technology Limited Company. “Hanging from the Cliff’s Edge” is the actual translation of Xuan Yaun, which is a close as we could get to “Dangerous”.

Foreign Ownership Certificate (4 weeks)

foreign-invest-cert

Here’s where that Foreign Owned part really clicks. The Hong Kong company applies to the government for permission to open a company in China. China gives us this giant certificate redeemable for one Chinese company. Now we’re getting somewhere.

foreign-invest-details

Notice it says for investors from Hong Kong, Macau, and Taiwan? That’s because it belongs to the Hong Kong company, not us.

Business license (10 days)

cn-company-license

All the documents and the company coupon go the local government. 10 days later we get a business license and a copy. These giant papers will have to be folded and carried a ridiculous number of places over the next several months.

company-permission

We also get a half dozen permission letters from the local government. They want one every time we get permits, a bank account, visas, etc, etc.

The problem with stamps

stamps

So, China enjoys stamps. You need them endlessly. The company has three stamps: general stamp, financial stamp, and customs stamp.

KNOW IT: Domestic company stamps are round, WFOE stamps are oval. Are they really a WFOE? Check their stamp!

personal-stamp

We each have name stamps as well. Literally just a stamp with English names.

During the next phase everyone needs the stamps: accountants, permit and licensing agents, visa agents, the bank. Of course you’re gonna need a little stamp time of your own too.

Here’s the rub: you only get one stamp and its illegal to copy them. Part of what takes so damn long with the WFOE is waiting for stamp time. For a while our stamps were couriered between 6 offices almost daily. This can’t be how Tencent deals, can it?

Mix and serve over ice

This is just the initial setup. To actually do anything with the company we still need a bank license and account (2 months), an import-export license (1 month), a work visa (3 months), and a couple other things. We’ll write these up in less-epic posts in the coming weeks.

Was it worth it? No idea yet. The dust is settling though, and we can see a day in the future when we’re running the company instead of starting it.

Dirt Cheap Dirty Reels: cheap component reels from China

via Dangerous Prototypes

dirty_reels

Component reels shouldn’t be overpriced or difficult to come by. Dirty Reels connects you to cheap Chinese component suppliers in the Huaqiangbei electronics market. Add a reel of resistors to your next DEV shop order for under $4!

A dirty reel of 5000 100ohm 5% 0603 resistors from a major Chinese manufacturer like Super Ohm is only $3.97. Mouser.com’s cheapest reel comes in at $20 per reel!

Try some searches:
100R Resistor
10K Resistor
100nF Capacitor
1uF Capacitor

Over the past year we created a database of parts and suppliers in Huaqiangbei, the world’s largest electronics market. Dirty Reels is a public search of those parts. Choose the number of reels to purchase and add it to your cart. Behind the scenes we’ll go grab your parts and put them in your order.

Dirty Reels is highly experimental. Currently only resistors and capacitors are included in search results. Once things are running smoothly more components will be listed. The search is also very stupid, your values and units must match the database format: e.g. 100nF, not 0.1uF.

There are (not so) hidden ulterior motives behind Dirty Reels. We’re not trying to become Digikey, and it isn’t profitable to sell reels at this price. Instead, we’re trying to bootstrap a relationship with component suppliers.

For services like Dirty PCBs, Dirt SLA, and Dirty Cables we need a suppliers full price list and pricing formulas, but nobody wants to share that info as most prices are negotiated each time. What we like to do is send a flood of orders to get them interested, then have a meeting and ask for the info we need. Most suppliers are more than cooperative after the initial wave of sales.

You get reels of components near actual Chinese prices, while helping us to seduce new suppliers. Win, win, win!

Making beyond the Wall: get to know chinese makers

via Arduino Blog

MakinginChina

Last June Arduino partnered with Seeedstudio to manufacture Genuino boards for the chinese market and during Maker Faire Rome Massimo Banzi took part to an interesting panel to promote  4 chinese delegates from business, education, design and research domains presenting their work and discussing what does it mean to be a maker in China. (in the pic from left to right, Lin, Massimo, Alessio, Jin, Chenille & Flamingo).

The panel titled Making beyond the Wall and moderated by Alessio Jacona tried to address the growing maker movement in China which is not so visible to the European community while the hype of manufacture in Shenzhen, the Chinese Silicon Valley, is gaining more and more international media attention.

Lightbox

Flamingo was the first presenter of the session. Indeed he was also the first person to use Arduino boards in China back in 2007. As an evangelist, he taught physical interactions in China Central Academy of Fine Arts and even started the digital firm K1ND Beijing with Ogilvy China, which focus on interactive design with open source technologies for business projects.

He introduced LightBot (watch video on youku) made in collaboration with Jun Huang, an architect based in China. It’s an installation using LEDs as a brush to draw on light-sensitive canvas. The material on the wall glows after being exposed to light, particularly ultraviolet light, and fades away after some time. Lightbox is powered by an Arduino controlling 1024 LED lights installed on the pallet and stepper motors to control the movement.

Then it was the turn for  Jin  introducing Minibuilder and Candy Project (we featured her work in our blog earlier) created during her fellowship at Iaac. With her international background, Jin explained how she realized how the culture of making in China is focusing more on hardware startups with strong potential to accelerate thanks to great manufacturing opportunities. Whereas in the West, people see it more as a hobby or prefer to explore the conceptual development in a lab environment.  Nowadays she is implementing a new VR projects in China.

Later Lin explained his work as a tutor at the University of Science and Technology in Beijing and also his commitment as a community manager of mechanics and robotics in arduino.cn forum, the community of Arduino fans who also participated to Arduino Day. He worked on various projects and applied Arduino in hemiplegia rehabilitation equipment through sensor feedback and in a gearbox to detect malfunctions through vibration, temperature and stress.

Last but not least, Chenille talked about how he wrote the first book about Arduino in China and more recently, translated the third edition of Getting started with Arduino book into Chinese. He’s now working on a brainwave-controlled music player.

The panel was a good chance to present to an european crowd real experiences from the voice of chinese makers and sharing good practices for future collaborations.

Are you based in China and  want to share a project made with an Arduino or Genuino board? Submit it to the blog, we’d like to feature it and tell your story!

Visual report from Maker Faire Shenzhen

via Arduino Blog

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Arduino/Genuino team were in China last month to be part of Shenzhen Maker Faire and present to local makers the new Genuino boards, together with Seeedstudio. They  also had the pleasure to meet with Arduino users, teachers, students and makers of all ages with great skills.
Here’s a selection of pictures form those amazing days (all the pictures are on our Flickr).

Thanks to all the people visiting our booth and warmly welcoming us in China!

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Arduino and Seeedstudio announce partnership in Shenzhen

via Arduino Blog

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Today, June 20th, 2015, Massimo Banzi, Co-founder of Arduino, and Eric Pan, founder and CEO of Seeedstudio announced at Maker Faire Shenzhen 2015 a strategic partnership between Arduino LLC and Seeedstudio.

Seeedstudio will manufacture and distribute Arduino LLC products using the new Genuino brand in China and other Asian markets.

The new Genuino name certifies the authenticity of boards, in line with the open hardware and open source philosophy that has always characterized Arduino. Genuino is Arduino LLC new sister-brand created by co-founders Massimo Banzi, David Cuartielles, Tom Igoe and David Mellis for markets outside of the USA.

“We are very excited to partner with SeeedStudio to manufacture our products in China. We’ve known and appreciated Seeed for years, we share the same values and I think they are one of the most forward looking companies in China” said Massimo Banzi.

And he also explained about Genuino: “Arduino is very popular in China but the brand is used heavily without permission. Genuino allows the market to clearly identify which products are contributing to the Open Source Hardware process. With Genuino, the Arduino.cc community will easily be able to recognize the partners who are contributing to support the development of the platform.”

Eric Pan, founder of Seeedstudio, explained: “Arduino is becoming a global language of making, we are proud to help provide Genuino branded localized products to carry on the conversation in China. Here we already have a huge Arduino user base and growing, it’s time to get us involved deeper with global ecosystem. “

Genuino-branded products will be sold on Seeed’s store on Taobao and soon on http://www.genuino.cc.

The partnership between Arduino LLC and Seeedstudio is a bold new step of a global development plan by Arduino LLC. Arduino LLC has recently launched the Genuino brand and is already working with market-leading, innovative manufacturers/distributors in Asia, Europe, South America, Canada and Africa.

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