Here are a few interesting articles that I found recently.

Plenty of Productivity in Store for China, Economist Says

Journalists are good at reporting the obvious: less and less Chinese workers are going to work in factories. And everybody draws a conclusion that looks equally obvious: the “law” of supply and demand will push salaries up, and China’s production will become less competitive.

Well, not so simple. If, in five years, two average factory workers are able to do the job currently done by three, the whole situation will be different. Productivity gains could very well compensate for the reduction in the number of workers.

On Getting A Fixed Price From Your China Supplier. Don’t Bother?

Dan Harris explains why setting a fixed price over a certain period (through a contract) is usually not a good idea.

Some very large buyers can afford to require fixed prices. For most importers, though, the risk of the factory substituting lower grade components would be too high.

How to get off the negotiations carousel.

This is a follow-up post by David Dayton, on the issue of prices.

He emphasizes the fact that Chinese suppliers, in their vast majority, see variations in inputs (raw materials, labor…) as an excuse to push prices up — never down!

Watering Down Your Inquiry in the Quoting Process

Jacob Yount gives a few tips on how to send inquiries that look serious (and give the impression that an order is coming soon) and that don’t consume the supplier’s time unnecessarily.

From my observations, most new buyers make these mistakes. And some of them keep making them after years in the importing business.

Creativity – It’s not that they can’t… They’ve just never been asked to do it before.

Where does the lack of creativity displayed by Chinese people come from? According to David Dayton, “the lack of any development of young people and development of practical skills OUTSIDE of formal education.”

Specifically, the first job that most Asian grads have ever had is the first job that they get upon graduation from college. Prior to that time they’ve done NOTHING but study for tests for 20 years.

This is why you can hire someone with straight A’s from a great school and they can’t solve practical work issues or won’t do anything that isn’t specified in their job description.

This rings true to my ears. Do you agree?

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PS: smartphone users should also be happy to find a useful list of dictionaries, translators, social apps, shopping and travel, etc. on 25 Essential China Survival Apps.