I just read a very thoughtful article on David Dayton's blog: When your supplier is not arguing to win. David gives a list of reasons why it's so hard to get a Chinese manufacturer to deliver on spec, in time, and without last-minute price … [Read more...]
Why doesn’t China value intellectual property rights?
"Microsoft Corp.'s revenue in China this year will be about 5% of what it gets in the U.S. even though personal-computer sales in the two countries are almost equal", according to Steve Ballmer (in the Wall Street Journal). Foreign buyers … [Read more...]
Managing an employee based in China/HK
I read several times that it is easier to manage an employee than an external service provider. There are cases where this is wrong, though. Thousands of small to midsize importers pay a sole employee in China or in Hong Kong, to work … [Read more...]
Relocation of export manufacturing in China and low-cost Asia
The Li&Fung Research Centre just published an interesting study entitled China Distribution & Trading (h/t to Max Henry). It analyzes the recent trends observed in the sourcing industry. I am reproducing a couple of excepts … [Read more...]
China’s village community system
About 6 months ago, I wrote an article entitled Are Chinese Suppliers Trying To Screw The Foreigners? My point was that foreigners were an easy target because of their typical unpreparedness, but not more desirable as a target than other … [Read more...]
Why you should ignore guanxi in China
There has been a bunch of blog posts about guanxi recently -- on Chinese Negotiation, on the China Law Blog, on Silicon Hutong, and others. My audience is mostly interested in sourcing and QC issues in China. What should you do about the … [Read more...]
The aspirations of the new generation of Chinese workers
Several of my clients recently asked me about the shortage of workers and the increases in salaries that most suppliers complain about. Basically, they wonder if this is a seasonal trend. My opinion is that it is a long-term tendency that … [Read more...]
Why do Chinese suppliers change names?
Many importers notice that some of their suppliers change their company names. Many see it as "one of these Chinese things--don't try understand it", and I think it is a mistake. There are basically two situations where the purchaser is … [Read more...]
Are Chinese factory workers less hardworking?
The Chinese have long been encouraged to be hardworking by their political leaders. They are proud to be able to "chi ku" (eat something bitter) for a long time. It is the sign that an individual will certainly succeed. It is also one of … [Read more...]
Dealing with “the Chinese way of doing business”
Foreigners from Europe or from the US often have a hard time dealing with the way business is conducted in China. Understanding cultural differences is already difficult. Addressing them effectively is the most difficult. I started … [Read more...]
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