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...]
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...]
Which China Sourcing Option Is Best For You? [Podcast]
![Which China Sourcing Option Is Best For You? [Podcast]](https://qualityinspection.org/wp-content/uploads/2021/08/WhichChinaSourcingOptionIsBestForYouPodcast-1140x445.jpeg)
In this episode… Renaud and Adrian discuss your 4 China sourcing options: commissioned agents, trading companies, third-party service providers (like Sofeast) who provide sourcing as a paid service, and doing it yourself by going direct to manufacturers, including their pros and cons. Renaud also provides some insight into what exactly it takes to source directly from Chinese manufacturers yourself and shares some best practices for you to consider. Just hit the play button to start … [Read more...]
Buying Electronic Components In Advance In China To Avoid Further Price Hikes
Several customers have asked us for help with buying electronic components in advance recently. If you purchase electronics from China, you have certainly noticed that prices have kept rising, and in some cases, the lead times are 6 months or longer. Some companies have stopped producing and are waiting for the insanity to stop, but most others have to keep supplying their customers. The question in their minds is 'how much worse is it going to get?' I thought I'd share some advice on … [Read more...]
New Importer from China? Beware the Credulous Foreigner Syndrome!
After about 40 years of openness, and about 15 years of 'direct trade' without Hong Kong trading companies, one might expect that foreign buyers take more precautions when dealing with Chinese suppliers. And, to be sure, some buyers do pay attention to risks. They have heard a few horror stories. They have read about common misconceptions, typical pitfalls, assumptions to avoid, and best practices for supply chain management. Unfortunately, it seems that a majority of people who haven't … [Read more...]
8 Elements of a Low-Risk Supply Chain in China [Free Webinar]
Clients often ask us for assistance in improving their supply chain in China. For instance, it's common to hear that they aren't satisfied with poor quality, with missed timelines, or with unethical practices. If your supply chain is giving you issues like this, and it is causing your business unnecessary risk, you might not have taken all the necessary steps. How to lower these risks and build a low-risk supply chain in China? Over at Sofeast, we've created a free webinar for you about … [Read more...]
Managing Assembly for your Production in China
It often makes sense to let your supplier handle the final assembly, final testing & inspection, packing, and shipping processes (which I will collectively refer to as “assembly” in this article). Here are a few examples of cases where this is true and also some examples and reasons why you, the importer, might take a more hands-on approach... … [Read more...]
The small buyer’s dilemma in China
Over the years, I have worked with many small and midsize importers who were looking for a good supplier. A very common question they have is "what kind of factory should I look for?". The problem is simple to grasp: Small factories give low quotations, but are not very reliable -- especially when they need to develop a new product. Larger factories are (usually) more reliable and more professional, but are unwilling to give low prices to small buyers. And they are more likely to bump … [Read more...]
10 Hard Truths For Small Buyers In China
New importers coming to China often wear rose-tinted glasses. They find nice samples and smiling salespeople at a trade show. Prices are often lower than they expected. And they reassure themselves with remarks such as "if other foreign buyers also work with them, I am not running huge risks." The fact is, many importers have lost their shirt in China, even though they don't tell the world about it. And very few buyers take enough precautions on the first orders. A good proportion of the … [Read more...]