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...]
Avoiding kickbacks in China
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...]
Chinese factories: the temptation of inner provinces
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...]
Prison labor in China: one more risk to deal with
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...]
Quality standards imposed by the Chinese government
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...]
Corruption of inspectors: the role of social pressure
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 of … [Read more...]
China product quality: any improvement?
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...]
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