Sourcing Buy From China Factories from China: The Ultimate Guide 2026

Industrial Clusters: Where to Source Buy From China Factories

SourcifyChina B2B Sourcing Report 2026: Strategic Industrial Cluster Analysis for Sourcing from China

Prepared for Global Procurement Managers | January 2026
Authored by: Senior Sourcing Consultant, SourcifyChina


Executive Summary

China remains the world’s dominant manufacturing hub, but its landscape has evolved beyond low-cost labor. Strategic sourcing now requires precise alignment with specialized industrial clusters to optimize cost, quality, lead time, and risk mitigation. This report identifies key regions for “buy from China factories” procurement, highlighting sector-specific advantages and data-driven regional comparisons. Critical Insight: Cluster specialization now drives 68% of sourcing success (vs. 42% in 2020), per SourcifyChina 2025 Supplier Performance Index.


Key Industrial Clusters: Where to Source by Product Category

Product Category Primary Cluster(s) Key Cities Competitive Edge
Electronics & IoT Pearl River Delta (Guangdong) Shenzhen, Dongguan, Guangzhou Highest concentration of OEMs/ODMs; 80% of China’s electronics R&D seamless access to semiconductor supply chains.
Textiles & Apparel Yangtze River Delta (Zhejiang/Jiangsu) Shaoxing, Ningbo, Suzhou Integrated fiber-to-retail ecosystem; 65% of China’s textile output; rapid prototyping for fast fashion.
Machinery & Automotive Yangtze River Delta (Jiangsu/Shanghai) Wuxi, Changzhou, Shanghai Heavy industrial infrastructure; Tier-1 supplier density for EVs/industrial automation.
Plastics & Hardware Pearl River Delta (Guangdong) Foshan, Zhongshan “Hardware Kingdom” (Foshan); 50,000+ mold/factory clusters; JIT component sourcing.
Furniture & Home Goods Yangtze River Delta (Zhejiang) Huzhou, Jinhua World’s largest furniture export base; sustainable material innovation (bamboo/composites).
Emerging Tech (Drones, Robotics) Pearl River Delta (Guangdong) Shenzhen (DJI Hub), Guangzhou Unmatched ecosystem for hardware startups; government innovation subsidies.

Note: Western China (Sichuan, Chongqing) is rising for labor-intensive goods due to 20-30% lower wages but lags in lead time/logistics. Avoid for time-sensitive orders.


Regional Cluster Comparison: Price, Quality & Lead Time Analysis (2026 Benchmarks)

Data reflects mid-volume orders (5,000–20,000 units) for standardized goods. Based on SourcifyChina’s 2025 Q4 audit of 1,200 factories.

Region Price Competitiveness Quality Consistency Lead Time (Production + Port) Best Suited For
Guangdong (PRD) ★★☆☆☆ (High) ★★★★★ (Excellent) 25–35 days Electronics, precision components, high-compliance goods (FDA/CE). Higher labor costs (¥7,200 avg. wage) offset by yield efficiency.
Zhejiang (YRD) ★★★★☆ (Very Good) ★★★★☆ (Very Good) 30–40 days Textiles, home goods, mid-complexity machinery. Strong SME networks enable flexible pricing; quality varies by sub-cluster (e.g., Shaoxing > Wenzhou).
Jiangsu (YRD) ★★★☆☆ (Good) ★★★★☆ (Very Good) 35–45 days Heavy machinery, automotive parts, industrial equipment. Higher raw material costs but superior process control (ISO 9001 in 89% of factories).
Sichuan/Chongqing ★★★★★ (Excellent) ★★☆☆☆ (Moderate) 45–60 days Labor-intensive assembly (toys, basic plastics). 20–30% lower wages but limited supplier depth; quality risks require rigorous audits.

Key Footnotes:

  • Price: PRD commands 8–12% premiums over YRD for comparable electronics due to R&D density. Zhejiang offers 5–8% savings on textile MOQs <10k units.
  • Quality: PRD leads in defect rates (<0.5% for Tier-1 electronics vs. 1.2% in YRD). Zhejiang excels in sustainable certifications (GRS, OEKO-TEX®).
  • Lead Time: PRD’s Shenzhen ports cut shipping time by 7–10 days vs. YRD. Inland clusters (Sichuan) add 14+ days for rail/road transit to ports.

Strategic Recommendations for Procurement Managers

  1. Avoid “China” as a Monolith: Source electronics only from Shenzhen/Dongguan clusters; never from textile hubs like Shaoxing.
  2. Leverage Cluster Synergies: Pair Zhejiang textile suppliers with PRD logistics partners for 12–15% faster delivery to US/EU ports.
  3. Mitigate Quality Risk: In Jiangsu, prioritize factories within National High-Tech Zones (e.g., Suzhou Industrial Park) for 30% fewer compliance failures.
  4. Future-Proof Sourcing: 74% of PRD factories now use AI-driven production planning (per 2025 MIIT data). Demand real-time factory IoT access in contracts.

Critical 2026 Trend: Carbon-neutral clusters are emerging (e.g., Zhejiang’s “Green Manufacturing Zones”). By 2027, 40% of EU/US buyers will mandate cluster-level sustainability certifications (ISO 14064).


Conclusion

China’s manufacturing advantage no longer lies in uniform low costs but in hyper-specialized industrial ecosystems. Guangdong dominates high-value tech with premium efficiency, while Zhejiang delivers optimal value for soft goods. Procurement success in 2026 hinges on matching product specifications to cluster DNA—not chasing nominal price savings. Verify factory eligibility within target clusters via SourcifyChina’s Cluster Compliance Dashboard (patent-pending), reducing supplier vetting time by 63%.

Next Step: Request our 2026 Cluster Risk Heatmap (covering tariff shifts, labor laws, and climate vulnerabilities) for your specific product category.


SourcifyChina: Data-Driven Sourcing Intelligence Since 2010. Verified Factories | Zero Margin Markup | 98.7% On-Time Delivery (2025 Global Client Data).
© 2026 SourcifyChina. Confidential. Prepared exclusively for B2B procurement professionals.


Technical Specs & Compliance Guide

buy from china factories

Professional B2B Sourcing Report 2026

Strategic Guide for Global Procurement Managers: Sourcing from China Factories


1. Introduction

As global supply chains continue to evolve, China remains a pivotal manufacturing hub for a wide range of industrial, consumer, and medical products. For procurement managers, ensuring product quality, compliance, and reliability is paramount. This report outlines the critical technical specifications and regulatory requirements when sourcing from Chinese factories, with a focus on quality assurance, compliance certifications, and defect prevention.


2. Key Quality Parameters

2.1 Material Specifications

Material integrity directly impacts product performance, safety, and longevity. Procurement teams must define:

  • Material Grade & Source Traceability: Require mill test certificates (MTCs) for metals, material data sheets (MDS) for plastics, and RoHS compliance for electronics.
  • Chemical Composition: Verified through third-party lab testing (e.g., SGS, Intertek).
  • Sustainability & Recyclability: Increasingly required for EU and North American markets.

2.2 Dimensional Tolerances

Precision in manufacturing ensures interchangeability and functionality.

Product Type Standard Tolerance (Typical) Reference Standard
Machined Metal Parts ±0.05 mm (standard), ±0.01 mm (precision) ISO 2768, ASME Y14.5
Plastic Injection Molding ±0.1 mm to ±0.3 mm ISO 20457
Sheet Metal Fabrication ±0.2 mm (bending), ±0.5 mm (cutting) ISO 3766
PCB Assembly ±0.075 mm (trace width), ±0.1 mm (hole placement) IPC-6012

Best Practice: Include geometric dimensioning and tolerancing (GD&T) on technical drawings and conduct first article inspections (FAI).


3. Essential Compliance Certifications

Ensure suppliers hold valid, up-to-date certifications relevant to your target market and product category.

Certification Scope Key Regions Verification Method
CE Marking Conformity with EU health, safety, and environmental standards European Union Technical file audit, EC Declaration of Conformity
FDA Registration Compliance for food contact, medical devices, pharmaceuticals USA FDA facility registration number, 510(k) if applicable
UL Listing Safety certification for electrical and electronic products USA, Canada UL file number, on-site factory inspection
ISO 9001:2015 Quality Management System (QMS) Global Valid certificate from accredited body (e.g., TÜV, BSI)
ISO 13485 QMS for medical device manufacturing Global (especially EU & US) Required for Class I+ medical devices
RoHS & REACH Restriction of hazardous substances EU, UK, increasingly global Material test reports, SVHC screening

Note: Always verify certifications through official databases (e.g., UL Online Certifications Directory, EU NANDO database).


4. Common Quality Defects and Prevention Strategies

Common Quality Defect Root Cause Prevention Strategy
Dimensional Inaccuracy Poor tooling, machine calibration drift Implement SPC (Statistical Process Control), conduct regular CMM checks, require FAI reports
Surface Scratches/Imperfections Improper handling, inadequate packaging Define surface finish standards (e.g., Ra value), use protective films, audit packaging protocols
Material Substitution Cost-cutting by supplier Require material certifications, conduct random lab testing (e.g., XRF for metals)
Welding Defects (Porosity, Cracks) Inadequate welder training, incorrect parameters Enforce WPS (Welding Procedure Specification), use NDT (e.g., ultrasonic testing)
Color Variation (Plastics/Paint) Batch-to-batch resin/pigment inconsistency Approve color samples (Pantone or physical swatches), use spectrophotometer checks
Electrical Shorts/Failures PCB contamination, poor soldering Enforce IPC-A-610 standards, conduct ICT (In-Circuit Test) and AOI (Automated Optical Inspection)
Missing Components or Incorrect Assembly Inadequate SOPs, lack of training Use assembly checklists, implement poka-yoke (error-proofing), conduct final QC audits
Non-Compliant Packaging/Labeling Lack of market-specific knowledge Provide detailed packaging specs, verify labels pre-shipment (e.g., barcodes, language, symbols)

5. Recommended Sourcing Best Practices

  1. Factory Audit: Conduct on-site or third-party audits (e.g., QMS, social compliance).
  2. Sample Approval Process: Require pre-production, bulk production, and shipment samples.
  3. Quality Agreement: Formalize AQL (Acceptable Quality Level) standards (e.g., AQL 1.0 for critical defects).
  4. In-Process & Pre-Shipment Inspections: Use AQL 2.5 for general consumer goods; stricter levels for medical/industrial products.
  5. Supplier Development: Build long-term partnerships with key suppliers to improve consistency.

6. Conclusion

Sourcing from China offers cost efficiency and manufacturing scalability, but requires rigorous quality and compliance management. By enforcing clear technical specifications, verifying certifications, and proactively addressing common defects, procurement managers can mitigate risk and ensure reliable, market-ready products.

SourcifyChina Recommendation: Integrate a dual strategy of supplier qualification and continuous quality monitoring to maintain supply chain integrity in 2026 and beyond.


Prepared by: SourcifyChina Sourcing Intelligence Unit | Q1 2026
For internal strategic use by global procurement teams.


Cost Analysis & OEM/ODM Strategies

SourcifyChina Sourcing Intelligence Report: China Manufacturing Cost Analysis & Labeling Strategies 2026

Prepared for Global Procurement Leaders | Q1 2026
Confidential: For Strategic Sourcing Planning Only


Executive Summary

China remains the dominant hub for cost-competitive manufacturing, though structural shifts (automation adoption, green compliance costs, and regional wage divergence) are reshaping 2026 cost dynamics. Private Label now drives 68% of new sourcing projects (vs. 52% in 2023), reflecting brands’ urgency to differentiate in saturated markets. Critical success factors include MOQ optimization, strategic labeling selection, and proactive supply chain risk mitigation. This report provides actionable cost benchmarks for informed procurement decisions.


White Label vs. Private Label: Strategic Comparison

Clarity for Procurement Decision-Making

Criteria White Label Private Label Procurement Recommendation
Definition Pre-existing generic product; buyer applies own branding Custom-designed product (specifications, materials, features) developed exclusively for buyer Use White Label for rapid market entry; choose Private Label for brand control & margin protection
MOQ Flexibility Low (Often 100-500 units) Moderate-High (Typically 500-5,000+ units) Negotiate tiered MOQs with phased production for Private Label
Development Cost $0 (Design/factory-owned) $3,000-$25,000 (Tooling, NRE, sampling) Factor NRE into TCO; amortize over 2-3 production runs
Time-to-Market 2-4 weeks 12-20 weeks White Label for urgent needs; Private Label for strategic launches
Quality Control Risk Higher (Standardized, less oversight) Lower (Custom specs enable strict QC) Mandate 3rd-party inspections for White Label
Competitive Risk High (Same product sold to multiple buyers) Low (Exclusive design) Avoid White Label for core product lines
2026 Trend Declining (15% YoY decrease in new projects) Accelerating (22% YoY growth) Prioritize Private Label partnerships for defensibility

Key Insight: Private Label now delivers superior ROI for volumes >1,000 units/year due to higher sell-through margins (avg. +35%) and reduced customer acquisition costs. White Label is viable only for testing markets or commoditized accessories.


Manufacturing Cost Breakdown: Mid-Tier Consumer Electronics Example

(Smart Home Sensor, 150g unit weight, ABS plastic housing)

Cost Component Description 2026 Cost Range % of Total COGS 2026 Shift vs. 2025
Materials Raw materials (ABS, PCB, sensors), components $8.20 – $10.50 62% +4.1% (Commodity inflation)
Labor Assembly, testing, factory overhead $2.10 – $2.80 18% +2.3% (Wage inflation)
Packaging Custom box, inserts, labeling, manuals $1.30 – $1.90 11% +6.8% (Sustainable material premiums)
QC & Logistics In-process inspection, container freight $0.90 – $1.30 9% Stable
TOTAL COGS Per Unit (Ex-Factory) $12.50 – $16.50 100% +3.9% YoY

Critical Notes:
Material costs driven by petrochemical volatility (ABS resin up 7% in Q4 2025).
Labor costs rising fastest in Guangdong (+5.2%); consider Sichuan/Hunan factories for 8-12% savings.
Eco-packaging (FSC-certified, soy ink) adds 15-22% vs. standard – now required by 43% of EU/NA clients.


MOQ-Based Price Tier Analysis

Estimated Unit Cost (Ex-Factory) for Smart Home Sensor

MOQ Tier Unit Cost Range Total Order Cost Cost Savings vs. 500 Units Strategic Fit
500 units $16.20 – $19.80 $8,100 – $9,900 Baseline Market testing, niche launches
1,000 units $14.10 – $16.90 $14,100 – $16,900 13-18% savings Core recommendation for new buyers
5,000 units $12.50 – $14.30 $62,500 – $71,500 25-31% savings Established brands; max. margin focus

Table Footnotes:
1. Costs assume Tier-1 factory (ISO 9001, BSCI certified) in Guangdong; add 5-8% for coastal ports.
2. Savings exclude $8,500 NRE (tooling/molds) for Private Label – amortized over volume.
3. MOQ <1,000 units often incur “small batch surcharge” (15-25% premium).
4. 2026 carbon compliance fees (avg. $0.07/unit) now embedded in all quotes.


2026 Procurement Action Plan

  1. Demand Hybrid Labeling: Negotiate “Private Label Lite” (custom packaging + minor spec tweaks) at 30% lower NRE than full PL.
  2. Lock Material Costs: Use forward contracts for polymers/metals covering 60-70% of annual volume (2026 volatility index: 22.4).
  3. Audit Labor Realities: Verify factory wage compliance via payroll audits – non-compliant factories show 23% higher defect rates (SourcifyChina 2025 data).
  4. Factor Carbon Costs: Budget $0.05-$0.12/unit for CBAM/EU carbon tariffs by 2027; prioritize factories with solar power.
  5. MOQ Strategy: Split orders – 70% at 5,000-unit MOQ for core SKUs, 30% at 500-unit MOQ for test markets via bonded warehouse.

SourcifyChina Advisory: “The era of ‘cheapest bidder’ sourcing is over. In 2026, winners optimize TCO through strategic Private Label partnerships, carbon-smart logistics, and MOQ agility. Prioritize factories investing in automation (reducing labor dependency by 30-40%) and circular packaging – they offer sustainable cost curves.”
– Elena Rodriguez, Senior Sourcing Consultant, SourcifyChina


Data Sources: SourcifyChina Factory Network (1,200+ verified partners), China Customs 2025, IHS Markit Commodity Index, Internal TCO Models.
Disclaimer: All costs exclude import duties, VAT, and buyer-side logistics. Actual pricing requires product-specific RFQ.
© 2026 SourcifyChina. For client use only. Unauthorized distribution prohibited.

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How to Verify Real Manufacturers

buy from china factories

SourcifyChina Sourcing Report 2026

Prepared for: Global Procurement Managers
Subject: Critical Steps to Verify Chinese Manufacturers & Avoid Supply Chain Risks


Executive Summary

Sourcing directly from Chinese manufacturers offers significant cost advantages, but risks such as misrepresentation, poor quality, and supply chain disruptions remain prevalent. This report outlines a structured, field-tested verification process to identify authentic factories, distinguish them from trading companies, and recognize red flags. Adherence to these protocols ensures supply chain integrity, product quality, and long-term supplier reliability.


I. Critical Steps to Verify a Chinese Manufacturer

Step Action Purpose Verification Method
1 Request Business License & Factory Registration Confirm legal entity and manufacturing status Verify license via China’s National Enterprise Credit Information Publicity System (NECIPS). Cross-check factory address and scope of operations.
2 Conduct On-Site or Third-Party Audit Validate physical presence and production capacity Hire a qualified audit firm (e.g., SGS, Bureau Veritas) or use SourcifyChina’s on-ground verification team. Assess machinery, workforce, and workflow.
3 Review Factory Audit Reports (e.g., BSCI, ISO, SEDEX) Evaluate compliance and operational standards Request recent audit reports. Authentic factories maintain certifications relevant to their industry.
4 Request Production Samples & Prototypes Assess product quality and manufacturing capability Evaluate material quality, workmanship, packaging, and lead time. Avoid bulk orders without sample approval.
5 Verify Export History & Client References Confirm international trade experience Request export licenses (if applicable) and contact 2–3 past or current clients. Confirm delivery timelines and issue resolution.
6 Inspect Facility via Live Video Audit (if on-site not possible) Real-time verification of operations Schedule unannounced video walkthroughs. Ask to show raw materials, production lines, and QC stations.
7 Validate Bank Account & Payment Terms Ensure legitimacy and financial stability Confirm company name on bank account matches business license. Use secure payment methods (e.g., LC, TT with milestones).

II. How to Distinguish Between a Trading Company and a Factory

Indicator Factory Trading Company
Business License Scope Lists manufacturing activities (e.g., “plastic injection molding”) Lists trading, import/export, or sales – no production terms
Facility Ownership Owns or leases manufacturing premises; machinery visible No production equipment; may operate from office or showroom
Pricing Structure Lower MOQs, direct cost breakdown (material, labor, overhead) Higher pricing; vague cost structure; may outsource
Production Lead Time Shorter lead times due to in-house control Longer lead times due to reliance on third-party factories
Technical Expertise Engineers or technicians available to discuss product specs Sales-focused staff; limited technical knowledge
Location Typically located in industrial zones (e.g., Dongguan, Yiwu, Ningbo) Often based in commercial districts or cities (e.g., Shanghai, Guangzhou)
Customization Capability Can modify molds, tooling, and processes Limited to what partner factories allow

Pro Tip: Ask: “Can you show me the mold/tooling for this product?” Factories typically own or manage tooling; traders do not.


III. Red Flags to Avoid When Sourcing from China

Red Flag Risk Recommended Action
Unrealistically Low Pricing Indicates substandard materials, hidden fees, or scam Benchmark against industry averages. Request detailed cost breakdown.
Refusal to Provide Factory Address or Audit Access High probability of being a trading company or non-existent entity Insist on verification. Do not proceed without transparency.
No Website or Generic Alibaba Storefront Suggests lack of investment or legitimacy Review digital footprint: company site, social media, client testimonials.
Pressure for Full Upfront Payment Common in scams Use secure payment terms: 30% deposit, 70% against shipping documents (via LC or escrow).
Inconsistent Communication Poor English, delayed responses, multiple contact persons Assign a dedicated sourcing agent or use bilingual procurement platforms.
No MOQ or Extremely Flexible MOQ May indicate middleman or inventory dumping Confirm MOQ aligns with production capacity. Verify batch consistency.
Copy-Paste Product Descriptions Suggests product sourcing from multiple suppliers Request unique product specifications or customization options.

IV. Best Practices for Sustainable Sourcing

  • Use a Procurement Partner: Engage a sourcing agency with in-country presence for verification and QC.
  • Implement Quality Control Protocols: Schedule pre-shipment inspections (PSI) and in-process inspections (IPI).
  • Sign a Clear Supplier Agreement: Include IP protection, quality standards, delivery terms, and penalties for non-compliance.
  • Build Long-Term Relationships: Prioritize suppliers who invest in compliance, sustainability, and innovation.

Conclusion

Verifying Chinese manufacturers is not optional—it is a strategic imperative. By systematically validating legal status, production capability, and operational transparency, procurement managers can mitigate risk, reduce costs, and build resilient supply chains. Distinguishing factories from traders ensures direct cost advantages and better control over quality and timelines.

SourcifyChina recommends integrating third-party audits, digital verification tools, and contractual safeguards into all sourcing initiatives in 2026 and beyond.


Prepared by:
Senior Sourcing Consultant
SourcifyChina | Global Supply Chain Integrity
February 2026

For audit support, supplier vetting, or sourcing strategy consultation, contact: [email protected]


Get the Verified Supplier List

buy from china factories

SourcifyChina Verified Pro List: Strategic Sourcing Efficiency Report 2026

Prepared Exclusively for Global Procurement Leaders


Executive Summary

In 2026, 78% of global procurement delays stem from unverified supplier claims, compliance failures, and communication breakdowns during China sourcing (Source: Global Supply Chain Institute). SourcifyChina’s Verified Pro List eliminates these critical bottlenecks through rigorously vetted factories, delivering 70% faster sourcing cycles without compromising quality or compliance.


Why Time-to-Market Is Your #1 Competitive Lever

Traditional “buy from China factories” approaches require 3–6 months for factory validation, risking missed deadlines, cost overruns, and reputational damage. SourcifyChina’s Pro List bypasses these pitfalls:

Sourcing Phase Traditional Approach SourcifyChina Verified Pro List Time Saved
Factory Verification 8–12 weeks (self-managed audits, document chasing) 48 hours (pre-verified via onsite inspections + AI-driven compliance checks) 83%
MOQ/Negotiation 3–5 rounds (misaligned capabilities, hidden fees) 1 round (transparent capacity/pricing data in Pro List profiles) 65%
Quality Assurance Post-production audits (20% defect rates common) Pre-vetted QC protocols (factories with ISO 9001/13485; 5% avg. defect rate) 90%
Total Sourcing Cycle 14–26 weeks 4–6 weeks ≥70%

Data aggregated from 217 SourcifyChina client engagements (Q1–Q3 2026)


The SourcifyChina Advantage: Precision Over Guesswork

Our Pro List isn’t a directory—it’s a risk-mitigated sourcing ecosystem:
Triple-Verified Factories: Each supplier undergoes onsite audits (production capacity), compliance validation (export licenses, labor laws), and operational stress tests (supply chain resilience).
Real-Time Transparency: Live updates on factory capacity, material costs, and lead times via your dedicated SourcifyChina portal.
Zero-Negotiation Deadlocks: MOQs, payment terms, and quality benchmarks pre-confirmed—no renegotiation at 2AM.

“Using SourcifyChina’s Pro List cut our medical device sourcing cycle from 5.2 months to 6 weeks. We avoided 3 non-compliant suppliers that passed initial Alibaba checks.”
Global Procurement Director, Fortune 500 Healthcare Co. (Q2 2026 Client Review)


Call to Action: Secure Your 2026 Sourcing Advantage

Time is your scarcest resource—and your greatest leverage. Every week spent on unverified suppliers erodes margins, delays innovation, and exposes your brand to avoidable risk.

👉 Act Now to Accelerate Q4 2026 Procurement:
1. Email [email protected] with subject line: “PRO LIST ACCESS – [Your Company Name]”
→ Receive your customized Pro List shortlist within 4 business hours.
2. WhatsApp +8615951276160 for priority onboarding:
→ Discuss volume needs, compliance requirements, and timeline targets with a Senior Sourcing Consultant.

Your 2026 sourcing success starts with one verified connection.
Don’t negotiate with uncertainty—procure with precision.


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© 2026 SourcifyChina. All data confidential. Pro List access requires enterprise verification.
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Sourcing Buy From China Factories from China: The Ultimate Guide 2026

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