The US-China Trade War Is and Will be the New Normal I hate to say we told you so, but for nearly a year, WE TOLD YOU SO. Since October, 2018 we have been all but screaming at anyone and everyone who has product made in China and sold into the United States to get
1. Manufacturing in China is Risky For many, the short answer is yes. Let me explain…. 2. U.S. Tariffs Make Manufacturing in China Risky First there are the tariffs, which come and go and come and go, but are always a risk for any company that buys product from China for sale in the United
1. Western Companies Want to Leave China and Are Leaving China The Wall Street Journal ran a front page article last week on American companies seeking to reduce their exposure to China. This article, Trade Deal Alone Won’t Fix Strained U.S.-China Business Relations, reinforces what we have been saying for months about how American and
1. We have no such list. Sorry. Pretty much every week, someone writes one of our international manufacturing lawyers to: a. Ask about a particular overseas manufacturer; b. Complain about a particular manufacturer and to ask us to tell our blog readers about this company or report them to such and such government or embassy
When I was a wee lad of maybe ten, growing up in small town middle America, one of my best friends, Pete Collins (a/k/a/ The Big Man), somehow managed to snare some tickets for a professional wrestling event in my town. So we went to some disgusting patched together arena for the event — and
1. China’s New Foreign Investment Law Under U.S. pressure, China recently adopted a new Foreign Investment Law 中华人民共和国外商投资法 (“FIL”) that had been under discussion for several years. Many believe this law will lead to foreign invested enterprises being treated the same as domestic Chinese private businesses. Unfortunately (and not surprisingly), the existing system that limits
Despite trade tensions, China’s declining economy, and overall uncertainty, our China lawyers have been getting a steady stream of requests from companies looking to set up their own factories in China. These are mostly companies that supply parts to multinational manufacturers that make products in China and are getting pressure from the multinationals to set
An article titled, Kickstarter Prototype to Production: $100K is not Enough, is getting a lot of play on Linkedin among the China manufacturing crowd, with those I know who know China manufacturing agreeing with it. The article provides compelling reasons why getting an electronics product manufactured in China will nearly always require more than $100,000.
Not surprisingly, our China lawyers are seeing a massive increase in foreign companies seeking to reduce or eliminate their China ties. Many are seeking to terminate their relationship with their Chinese suppliers and move production elsewhere (so far, it’s been mostly to Vietnam, Taiwan, Poland, Thailand, Mexico, Brazil, India and Malaysia). The other day I
With the recent onslaught of tariffs, our international manufacturing lawyers are increasingly drafting manufacturing contracts for Asian countries beyond China. In the last few weeks alone, we’ve drafted manufacturing contracts for Vietnam, Malaysia, Indonesia, Taiwan, and India. We also have seen a noticeable uptick in our Mexico contracts as well. One of the issues our
