As an importer, you are probably wondering how the COVID-19 epidemic in China is going to impact your business. Beijing says things are rapidly improving and hints that the situation will nearly be back to normal on the coasts by the end of February. They are still planning to hold the Canton fair. Let's all hope they are right. Let's hope there is no relapse (the epidemic starting again in certain cities) in the coming months. The situation is still far from clear. In the meantime, … [Read more...]
Wuhan Epidemic: Why Major Supply Chain Disruptions Are Coming Up
In my last article on the topic of the epidemic that started in Wuhan, I mentioned there would be real effects on logistics and manufacturing. Today I can affirm some of these effects can already be observed. And it is definitely going to impact some importers' sourcing strategy. … [Read more...]
China Epidemic: Real Effects on Logistics and Manufacturing
The situation is pretty dark, with a new virus spreading like wildfire and governments resorting to extreme measures. Nobody believes Beijing's official numbers. I wrote about the alarming estimates of some Hong Kong experts a few days ago, and finally, the Western press started to report them, too, a couple of days later. The Economist is asking 'how bad will it get?'. This is in everyone's mind. We have gotten many emails from our clients asking the same question this past week. They … [Read more...]
Diverging Views on the China Virus Outbreak: Whom To Listen To?
Some medical experts in Hong Kong have devoted their careers to the study of micro microbiology and viruses, after the traumatic episode of SARS. These are the people I will tend to listen to, on this topic. For example, Yeung Kwok Yung and Gabriel Leung. And these Hong Kong specialists project the evolution of the infection in a way no Western newspaper (who mostly take the official government numbers at face value) dares to relate, it seems. … [Read more...]
What the Wuhan Virus Means for Importers of China Products
As this new coronavirus is spreading at an astonishing speed, it will probably have a much greater impact than what importers expect. … [Read more...]
The Future of the Greater Bay Area: High-Tech Manufacturing
Beijing has been planning for the development of a high-tech area in the Pearl River Delta. They called it the Guangdong-Hong Kong-Macau Greater Bay Area in 2017. They clearly look up to the success of the San Francisco Bay area, home to Silicon Valley, and they have been planning to emulate that example. Learn more about it in this post. … [Read more...]
9 Consequences of the Upcoming US-China Trade War
Based on all the articles I have read about the current geopolitical situation, I am not optimistic about the affect of the US-China trade war on American importers. Dan Harris, who wrote "the US-China Cold War start now," announced that a "mega-storm" might be coming, and he may be right. Now, if things turn out as bad as predicted, and if tariffs apply on more goods imported from China to the US -- and at higher rates -- what does it mean for US importers? … [Read more...]
Chinese Suppliers Are Getting Less Flexible. Now What?
About 6 months ago, I wrote how Chinese fabric suppliers and dyeing houses were giving headaches to the whole supply chain. It had a serious impact on Chinese apparel suppliers (many delays, higher costs, higher MOQs for fabric...). And, in turn, those suppliers got more rigid when dealing with their overseas customers. The attitude was "that's the way it is and we can't make miracles, so just get in line". That's actually an overall trend, in many industries, from what I have heard. … [Read more...]
How the US/China Trade War Accelerates the ‘Made in China 2025’ Plan
Many journalists wrote about the new tariffs, how the situation will likely evolve over the next few months, and who the winners and losers might end up being. What I realized is, this situation is helping Beijing accelerate the transition of their manufacturing sector toward higher technologies. Let's look at 3 events that all point to this. 1. The US is stopping trade talks with China (published yesterday) For years, the US has complained American companies can’t fairly compete in … [Read more...]
Tips for Recruiting Good Talent For a China Factory or Buying office
Recruiting the right people is always a challenge for foreign companies in China. We have struggled quite a bit ourselves. I had the opportunity to ask a few questions to Jim Nelson, the president of SHI Group, a China-based recruitment agency. He writes a blog on his website and has a say-it-like-it-is approach that I like. Q: One position I see many Chinese manufacturers struggle to fill is that of the quality manager. The good ones are often in the 40-60,000 RMB range. What has been your … [Read more...]
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