Good Sources of China Info

I was reading an article on CNET NEWS.com the other day titled Sourcing in China Not a Sure Bet that was very well written and quite accurate. It begins by echoing what we've always maintained - that companies tend to jump into the China market without putting in sufficient time, energy, and money to really understand the nature of how their items are made or sourced.

The article is very automotive-centric but the advice it gives is sound and applicable to many industries. Of particular note are the five criteria it sights in evaluating if China is right for you. Basically any project requiring a good amount of labor makes sense and anything where you're looking at high overheads makes sense. Issues to bear in mind when thinking about manufacturing in China are transportation costs, lead times, and engineering demands on the Chinese. Where the article falls short is on a cultural understanding of the Chinese people and companies one might be dealing with. The concerns mentioned are all good ones and necessary ones, but companies looking to get into China should also be asking themselves; "who will understand the poeple involved and work to protect my best interests?"

A note on the concept of decreasing overheads: for most mid-size consumer products companies the cost of building molds is a big attraction. An injection mold that may cost $10,000.00 in the US is likely to cost only $4,000.00-$5,000.00 in China. The per units costs will most likely be less, but even if the transportation and development costs make it a wash, the building of molds, and of a network for future savings on molds is not to be taken lightly.

All in all the article is a good source of important information and issues to bear in mind, just don't forget that any business is only as good as the people involved.