This very long post aims to provide an overview of the challenges of manufacturing in China, as well as strategies for minimizing risks and maximizing opportunities. It outlines the administrative and regulatory requirements, process and production challenges, and specific cultural and market-specific risks.
The key to getting good products from your overseas manufacturers is, choosing a good manufacturer, using a good manufacturing agreement, having good IP protection, and employing a good quality control system.
For importers of Chinese products, this coming June 21 will be a critical date. On that day, a rebuttable presumption that all products made in Xinjiang violate the U.S. forced labor statute will come into effect. The rebuttable presumption is mandated by the Uyghur Forced Labor Protection Act (UFLPA), which was signed into law by
US-China decoupling is accelerating and inevitable. It will be gradual and then sudden. Now is the time for your company to prepare for this.
Contents of this Article: Mexico is Highly Focused on the USMCA Mexican Agriculture Has Lessons for the U.S. and Beyond Mexican Manufacturing Cannot Replace China Yet Mexican Business Leaders are Ready in Spite of Their Government Utah is Focused on Mexico’s Success as a Solution to Several Problems All together now: “¡Bienvenidos a México!” The
When my law firm’s international manufacturing lawyers work on international manufacturing arrangements, we never just draft a “straight NDA.” Instead, we draft a “non-disclosure/non-use/non-circumvention agreement” that we refer to as an NNN Agreement. Why? Because a Western-style NDA is worthless or worse for China. For China, you need a China-specific NNN Agreement. 1. China NNN
Fortune Magazine just came out with an article entitled: "Companies are beginning to panic: Experts say China’s lockdowns will make inflation and the supply chain nightmare even worse." To which my immediate thought was, "beginning"? Smart companies were panicking months ago; today is just the realization of so much of that panic. And do NOT say we did not warn you of all this. But before I turn to proving how our supply chain predictions have become reality, I will extensively summarize and quote from this Fortune article to get you up to speed with the disaster that is today's China supply chain.
The U.S. Treasury Secretary Suggests You “Friend-Shore” Your Supply Chain Regular readers of this blog know that we have been strong advocates for “de-risking” supply chains, especially when they are overweighted with China manufacturing. We always note that we understand some companies cannot easily shift manufacturing and operations out of China, but those that can, should.
Today, I look again at what is happening with COVID in China, but this time I dig deeper into the specific risks companies that get their products from China are facing.
China cannot achieve Zero-COVID and its supply chains will be devastated by that failure. It's time to move manufacturing out of China.
