I heard this comment from many buyers: Chinese factories are so disorganized! Who tends to make this type of observation? Importers who chase low prices and/or who purchase low quantities (and whose production ends up in small factories). … [Read more...]
Solar panels: China introduces a new standard to cool competition down
A few years ago, China decided to be the biggest producer of photovoltaic cells and panels. They gave out billions of RMB in loans to local manufacturers (located mostly in Jiangsu and Zhejiang provinces, close to Shanghai). What happened? … [Read more...]
The 3 trends of China manufacturing
A journalist asked me this question: "Is China over, as a sourcing destination?" My response was no... but it might be a destination for a different type of sourcing projects. No in the very short term, because supply chains can't be … [Read more...]
In China, make no assumptions
Last week I had an interesting conversation with a few friends. An American said "when I arrived here and I started sourcing products, what really hurt my business was all the assumptions I was making". And another friend responded "what … [Read more...]
Why do China factories “steal” intellectual property?
On the CSIC Linkedin group, I responded to the question "Is there a cultural element to intellectual property theft in China?" by writing: If they think they will benefit from stealing your IP and they can get away with it, they will do … [Read more...]
What future for Guangdong manufacturing?
The Guangdong province of China (and specifically the Pearl River delta) was THE country's hub for export manufacturing in the 1980s. But the situation has changed a lot: Local governments are pushing many industries out, to make room for … [Read more...]
The 7 deadly sins of Chinese factories
If you purchase from China, there is one thing you have noticed: prices are going up, often by 10-25% a year. The reason is not that manufacturers are increasing their margins, but that their costs are rising very fast. Yet, these same … [Read more...]
The crazy stories importers want to believe
A few days ago, I got a nice email from a reader. This was not just a "congratulations, very useful articles" message. It also pointed to some crazy stories that many importers want to believe: Very very well done! I have been importing … [Read more...]
New trend: many more Chinese importers
Last week I was discussing with a friend in Hong Kong. He is in contact with many companies all over China's coast, due to the nature of his job. He told me about a new trend that looks like this: Small Chinese company operates a few … [Read more...]
The changing nature of Chinese exports
The nature of products exported out of China is changing. This is an important trend, and all importers should be aware of its implications. China's manufacturing sector is "moving up the value chain", and it follows the same pattern as … [Read more...]
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