When finding the right manufacturing partner, there are always pitfalls to be aware of. We have survived many of them (as evidenced by our scrapes and scars). Anyone doing business in Asia for an extended period of time has plenty of war stories to share.
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We’re often asked for our view on what’s happening given current geopolitical tensions: “What’s going on with the trade war? What are we seeing?” We read the same news that our clients are reading, the difference is that we go through factories and see what happens on the ground. These anecdotal stories add context to what we read in the news.
Last month, NGS Global released this article discussing impacts of the trade war between the US and China on global manufacturers and their customers, as well as Asia’s supply chain.
China e-commerce is expected to be worth $1.8 trillion by 2022 according to a report by Forrester. Discovering and deploying the right strategies for brand building is like driving a car on a sheet of ice: it takes a while to get any speed and steering and doesn’t necessarily mean a change of direction.
A trade deal between the U.S. and China is just one part of the complex relationship between the two countries. Rather, the shock of the tariffs can now be called an alarming wake-up call to those doing business in China. U.S. companies that depend on Chinese factories for the supply chain were already looking at other options, and many more now want out now. Ultimately, everyone knows that no matter what concessions are made in any new deals, business with China will never be the same.
300 days and counting since trade tensions started between two of the world’s largest superpowers. Last week the Trump Administration increased tariffs on $200 billion of Chinese goods to as much as 25% and China’s retaliated with an announcements that would increase tariffs on nearly $60 billion of U.S. goods. The era of uncertainty is here to stay.
China is the world’s largest economy and the fastest growing consumer market. Thus, there are many opportunities to succeed when selling in China. And if you’re already manufacturing in China, it probably seems logical to sell there as well.
China is sending a message to its local economy—hurry up and build it.
Clients with China interests are wondering where to hedge their bets, given these circumstances of uncertainty.
Experienced a factory abruptly closing in China? This may be your chance… The downturn is real. Environmental regulation enforcement, over capacity, competition, and just plain old lack of demand are all driving this trend. It requires some diligence to know if your China supplier is in trouble. Time to make a visit… Here are 10 red flags your China supplier is going bankrupt.