China is fighting tooth and nail to contain the current wave of covid infections. And this is going to be a long and painful battle. Most people I talked to do not believe Beijing will change its "covid zero" objective anytime soon. They recently adapted it a bit to "dynamic zero", but the objective remains zero. In short, there are outbreaks all along the East coast, and hyper-connected megacities like Changchun (in the Northeast, home to very large VW production facilities) and Shanghai … [Read more...]
5 Difficulties Importers Are Currently Faced With When Preparing For 2022 [Podcast]
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In this episode… The coronavirus pandemic has caused a number of difficulties for importers with Chinese or Asian suppliers. Lack of visibility over suppliers, lockdowns, increased supply chain risks, sea freight delays and very high costs requiring very advanced booking, a global electronic component shortage, and a USD/RMB exchange rate that isn't ideal right now, are the topics under discussion in this episode. If these are affecting you, Renaud's views will be … [Read more...]
China’s Factories Are On A Wartime Footing Due To Covid. How Does This Affect You?
As we reach August 2021 the highly infectious coronavirus delta variant has infiltrated the country despite China’s stringent pandemic control measures. Importers may remember the disruption caused by China’s strict national lockdown around early 2020 when the epidemic became very severe in Hubei province. Global supply chains still haven’t recovered despite China’s manufacturing sector bouncing back quickly, not least because sea freight initially revised down their estimates on required … [Read more...]
Could Rising COVID-19 Cases In China Before CNY ‘21 Affect Supply Chains? [Podcast]
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What would YOU do if lockdowns in China over Chinese New Year threatened your supply chain..? As cases climb in Northern China there's a very real threat that tightening restrictions could affect supply chains in China. In this episode, Adrian and Renaud discuss the situation on the ground in China and Hong Kong as of January 28th, with Chinese New Year fast approaching on February 12th. CNY is a difficult time for importers as it is, as manufacturers tend to be closed for weeks and … [Read more...]
Will China Lock Entire Provinces Down A Second Time in 2020?
In early February, I was wondering what effects the lockdown of China would have on importers. And, a few weeks later, importers suffered another (often more violent) blow: stores closed for months, a lot of unsold inventory, and weak demand across many product categories. … [Read more...]
When Should American Companies Reshore Manufacturing Or Stay In China?
In recent times it's very common to see stories about American companies scrambling to reshore manufacturing and leave China and the data seems to support this trend of reshoring or finding other locations. However, I suspect the American companies that moved to China for the wrong reasons originally are mainly the ones who are now reshoring back in the US. Is this the case, though? Let's explore this... … [Read more...]
Buyers of Masks and other PPE: Are You Exposed to Serious Liability?
This is an important warning to all companies that improvised themselves as importers of personal protective equipment during the coronavirus pandemic. Read this before you get yourself involved in a situation that might cause you serious trouble for years to come. … [Read more...]
Requirements To Import PPE: You Need To Go Beyond Certificates
There is a serious emergency right now to procure and import PPE. I know. Manufacturers are overloaded with requests from buyers, and they can't (won't) spend much time responding to requests. I know! Nearly all the importers I talked to were concerned about the manufacturers' formal authorization to sell PPE and medical gear on their market. But very few wanted to go deeper than that. However, as you buy products that are actually intended to save lives, should you throw all proper due … [Read more...]
Verifying Certificates for Masks, Gloves, and Other PPE from China
These days, it seems everybody has jumped on the same 'PPE' bandwagon. In China, hundreds (maybe thousands) of manufacturers have seized this opportunity. Many of them have zero experience in the medical field, or in any regulated industry for that matter. And, all over the world, buyers are looking for personal protective equipment (PPE) and related medical products. Again, a minority of them have a full understanding of the implications of what they are getting into. The … [Read more...]
What the Coronavirus Means for Importers of China Products
As this new coronavirus is spreading at an astonishing speed, it will probably have a much greater impact than what importers expect. … [Read more...]