Most economists tend to view the move of (some of) North American and European manufacturing base to China as an illustration of Ricardo's competitive advantage theory. In their view, developed nations are better off focusing on … [Read more...]
Do Chinese suppliers respond to all emails? Of course not.
So you sent a request for quotation to 20 suppliers, and only 5 have responded? Or you have placed an order and production is supposed to be under way, but your contact does not respond to your demands for updates? It should not be … [Read more...]
The effect of China inflation for foreign buyers
Many importers have been forced to accept sharp price increases in 2010 and 2011. And everybody is wondering, how long will it take before China loses its price competitiveness? I just read an interesting article entitled China’s … [Read more...]
The main advantage of manufacturing in China: speed
Li & Fung's CEO recently gave an interview to Reuters that you can watch here. I wrote a few excerpts below: About China's main advantage: "China is by far the most efficient, quick-to-market, including price and quality, if you add … [Read more...]
Auditing a small Chinese factory: does it make sense?
I see some well-meaning importers who pay for factory audits based on a checklist inspired by the ISO9001 standard. However, I am really questioning the value of auditing a small factory (below 400-600 workers). Don't get me wrong, I am … [Read more...]
China quality: run away at the first alert!
Last week I wrote about bad relationships with Chinese suppliers and Dan, on the China Law Blog, mentioned it in There Must Be Fifty Ways To Leave A Bad China Supplier. Specifically, Dan asked this question to his readers: What percent … [Read more...]
The different kinds of sourcing agents
Importers often feel like they need some help to find a good supplier in China or in other Asian countries. In this article I am going to study the different options available to them. I heard lots of stories about sourcing agents, and … [Read more...]
Bad relationship with a Chinese supplier: just end it!
Many importers have a bad relationship with their key Chinese supplier(s), but they don't look for other companies. Sometimes it leads to unbelievable situations. For example, some buyers got screwed on 3 orders in a row by the same … [Read more...]
Why does it take so much time to manufacture in China?
Recently I saw a few friends based in France. One of them said "maybe I should get this manufactured in China, and do a quick market test." Would it really be quick? Only in their dreams. I had to explain a few basics about Chinese … [Read more...]
Are your orders too small to buy in China?
The CSIC just published another good article (Too small to go factory direct?), which adds up all the fixed costs of buying in China. From their calculations, it takes about 5,000 USD for visiting & qualifying one supplier, and for … [Read more...]
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