Manufacturing in China from my perspective
During my 20 years living in Asia, I’ve owned or operated a number of different business entities in China, ranging from manufacturing WFOE’s to US-China joint ventures to trading companies to buying offices. I’ve also dealt with agents, factories and service providers of every variety imaginable, from professional companies to total scam artists.
China is not only a massive market but it changes rapidly, so I don’t claim to be an expert on all aspects of your China business. And anybody that claims to know “everything about China” should not be taken seriously! I’ve had my share of success as well as failure, and this has prompted me to compile a whitepaper where I’d like to share some of the key lessons, pitfalls and best practices that I learned the hard way when answering the deceivingly simple question of “what are the options for manufacturing in China?”.
Read on to find out what you can expect from this whitepaper and how it will benefit you…
“What can you expect?”
This whitepaper covers each of the following options for manufacturing in China:
- Contract Manufacturer
- Sourcing Agent
For each of the above mentioned supply options, as well as some of their lesser known variants, I go over the pros and cons in great detail, share information on their costs and divulge insider information based on my experience.
How can you benefit from this whitepaper?
My goal is to help the reader identify the best option for their particular needs as selecting the right partner is the single most important step in the overseas manufacturing process. And the “right” supply option is highly depending on the buyer’s particular mix of order size, budget, available time, quality level, intellectual property exposure and general China understanding.
Below you can see the 5 key criteria I have used to help readers make a decision about which production option is best for their particular needs:
1. Level of Chinese Expertise Required
How well do you need to know the language, business culture & legal systems.
2. Typical Order Size
Does the buyer have to be a certain size?
3. Control over Lead-times, Intellectual Property, Quality Standards, Social Compliance & Price
How exposed is the buyer to non-confirming goods and are there additional costs needed to ensure quality standards are achieved? How hard is it to be a responsible corporate citizen in terms of workplace safety, labor practices and environmental protection? How exposed is the buyer to having their ideas ripped off?
Does the buyer get to know the true identity, compensation and motives of the key players in the supply chain?
5. Tax Complications
What’s the impact on global taxes and the costs of filing at home or abroad?