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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...]

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...]

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...]

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...]

Josh Green, the CEO of Panjiva, came up with a thoughtful article entitled Spread The Word: There Isn't A ‘Next China’. Manufacturing products in China is going to get more expensive over time. For many importers who survive with a 5% or a … [Read more...]

I just listened to a great podcast on China's kickback culture, where Bill Dodson (who writes the This Is China blog) explains how difficult it is to avoid kickbacks. There are mainly two difficulties for foreign companies, whether they … [Read more...]

The Chinese factories that produce and export consumer products are mostly along the coast. There are no good statistics about this, but I estimate that more than 90% are in the provinces of Guangdong, Fujian, Zhejiang, Jiangsu, and … [Read more...]

Importing products that were made in Chinese factories is considered forced labor and is forbidden in several countries. It is also a very high risk in terms of PR/reputation for the importer and the retailer. It is hard to detect and even … [Read more...]

Many importers think that China does not really protect its own consumers, and the theory is that Chinese factories simply follow the (low to inexistent) quality standards of the local market. Wrong!! There is a great passage in the book … [Read more...]

Like in most business, most problems in the QC industry come from human factors. The main challenge to proper execution of our mission is without any doubt the risk of corruption of inspectors in factories. There are basically two types … [Read more...]