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Every year, I guess thousands of companies decide to start importing from China. Some of them already exist, and others are founded specifically for this activity. But overall, most of these companies know very little about China. They … [Read more...]

Factory audits, like product inspections, need to be performed in an objective manner. A buyer that pays for audits of two factories should be able to compare the findings and use them to pick a supplier. It means auditors should work … [Read more...]

Small importers tend to have the feeling that buying from a large factory is more expensive but more reassuring. There is some truth regarding the higher prices, but risks are not necessarily lower. Buyers should be aware of the different … [Read more...]

The Financial Times published an interesting article ("An accident shows how China treats consumers") that describes the view of Chinese state-owned enterprises (SOEs) regarding the export of unsafe products. They represent a large chunk of … [Read more...]

I had an interesting conversation with a Chinese friend who works for local district’s government (in Shenzhen city). He explained to me how "the Chinese legal system does too little for society". No recourse against factories closing … [Read more...]

In Hot, Flat and Crowded, I read that the exact cost of oil delivered by air-borne tanker to the US military stations in Irak is... $42 per gallon. Here are the elements to add up: Commodity price of oil + cost of delivery + cost of … [Read more...]

Some large retailers purchase their goods directly from Asian manufacturers, who in turn buy the components and process them. That's about as "direct" as it can get. It allows buyers to avoid the margins of all kinds of … [Read more...]

Twenty-five years ago, the companies that imported from Asia were mostly large structures. Some have set up local offices to conduct quality control. Others have secured the quality of their imports by working with large 3rd party QC … [Read more...]