Some buyers ask me if China product quality is going up over time. It is a tough question. I am not going to badmouth Chinese factories in this post. They are certainly not the only ones to blame. A good proportion of quality issues in … [Read more...]
When Japan envied China
Everybody seems to have an opinion. I am of those who thing China will find its own path, as it has done until now, rather than following a specific model. Japan's example is interesting, but the comparison has its limits. Last week I … [Read more...]
Empty factory buildings in Dongguan
Yesterday I had a discussion with a friend based in Dongguan city (a major export manufacturing base between Shenzhen and Guangzhou). He estimates that 25% to 35% of factory buildings are empty and unoccupied. In his area, the rental fee … [Read more...]
Chinese buildings full of… air!
I have noticed something funny about a few commercial buildings that were built recently in Shenzhen. The top floors are empty. Or, should I write, the place that should be occupied by the theoretical top floors is empty. You can see it on … [Read more...]
The value of promises in China
Chinese exporters have grown wary of the foreigners' rigidity, and they often do all they can to avoid precise promises. It can be a shipment date, a certain level of quality, a proportion of wastage of materials, etc. What Americans of … [Read more...]
Giving money to inspectors? It’s normal!
In the QC business, the worst a supplier can do is denounce an inspector to the buyer for corruption. Sometimes it is true, and I'm happy they open up about it. But I investigated some cases where all appearances were against the supplier, … [Read more...]
Understanding the Chinese system
I am reading River Town by Peter Hessler. This book is packed with insights about what I call the "Chinese system". The story takes place in a small town of Sichuan province, around 1997. The author worked there as a teacher. He wrote … [Read more...]
How Chinese factory owners treat their workers
I mostly go to factories in the Guangdong province. Over the last few months, I have heard complaints such as "we are trying to hire, but we can't find enough workers". I even heard "it's nearly Chinese New Year, the workers that stayed in … [Read more...]
Chinese consumers are getting more demanding
I found this advertisement in my lift this morning: Do they really need to advertise for milk consumption? I know the central government is pushing it, but it was already growing very fast in large cities. Or is it because of safety … [Read more...]
Respecting contracts and telling the truth in China
China Business Success Stories just posted an interesting article entitled What Do We Mean By 'Trust' In China? by Frank Gallo. Nothing really new, actually, when you consider all the business books already written about China. But it is a … [Read more...]