A further article based on the American Chamber of Commerce white paper, is highlighting the problem of rising costs in China. These rising costs are influencing sourcing decisions of low margin businesses such as those involved in textiles, toys and shoes.
Click here to read the full article in Industry Week.
This article also points to the top 5 challenges of doing business in China:
- Human resources constraints
- Inconsistent regulatory interpretation
- Unclear regulations
- Lack of transparency
- Bureaucracy
This confirms my experience of talking to and working with companies who are sourcing from China. It would appear the only way to work successfully with suppliers in China is to partner with a local company who understand the workings of the Chinese system, the culture and not least the language.
I think local sourcing is coming back. The reason is that demand is fluctuating and local sourcing can handle this kind of situation better.
Posted by: Supply Chain | September 27, 2011 at 08:24 AM