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Despite the challenges that occurred in China during summer of 2015, the country remains a legitimate and highly profitable manufacturing partner for every international corporation. Taking the steps necessary to engage properly with the sector will ensure that future contracts will not be risking losses due to tragic explosions or unpredictable financial policy changes.

World Economic Forum: “China Remains Economically Competitive”:

Appropriately, the country’s economic struggles have caused much concern among the world’s manufacturing industry participants and triggered conversations about whether China will be able to retain its status as a global manufacturing hub. However in September, 2105, the World Economic Forum (WEF) , released its “Global Competitiveness Report 2015-2016” (GCR 2016), the statistics of which indicate that China remains a solid economic player on the world stage and will stay there for some time to come.

The GCR 2016 evaluates how 140 of the world’s strongest economies compete against each other over 12 “pillars” of national economic activity. Each country is given an overall score out of seven and is ranked by its standing among all the participating countries. For 2015-2016, Australia scored 5.1 points and was ranked the 21st most competitive economy. In comparison, China scored 4.9 points and ranked 28th overall, unchanged from its ranking in 2014-2015. China’s ranking remained steady even after the fluctuations experienced in China’s industrial and banking sectors over the course of summer 2015. For international manufacturers considering entering the Chinese manufacturing and supply chain sector, the report gives assurance that the country continues to offer an excellent opportunity for high-production and highly lucrative business partnerships.

Start the Industrial Contracting Process By Assessing Risk:

The context of pursuing trade in China presents risk of loss issues that are not experienced in any other country. Cultural, linguistic and business practice variations across the nation are often completely baffling to enterprises not familiar with them. Distance also is usually a factor when the producer is based thousands of miles away from the Chinese manufacturing plant. And contract details can be derailed at any step of the way, from a lack of legitimate credentialing of the factory, through ethical and environmental regulations violations, to incompetent production processes and substandard materials and supplies. Companies that fail to adequately review their Chinese partner companies for these concerns stand to lose not just their money, but also the products they intended to purchase, contracts with other partners further up the supply chain, and, most significantly, their reputation in the eyes of their consumers and customers.

Without proper vetting, the risk of loss caused by engaging with an uncertified, unknown Chinese factory can be immense. Getting these details right from the start will ensure not just that the contract gets off to a good start, but that it will remain productive and in compliance throughout its full term.

Face-to-face Exchanges With Trusted Chinese Representatives are Optimal:

The internet offers lists and lists of Chinese factories, manufacturers and agents, all of whom will pursue your contract with unrelenting focus. Unfortunately, the lists are often populated by unscrupulous people looking for your money, not your business. We have helped many businesses who signed with a “manufacturer”, sent their deposit money and waited to receive their goods, only to receive delivery of substandard goods – if they received anything at all. Sometimes the “manufacturer” wasn’t even a manufacture but rather an agent, or in some cases simply a thief. Other times, the “manufacturer” was just a middle man with no influence at the factory to ensure the quality or timeliness of the contractually required supplies and materials. And once they have your money, tracking these people down for redress or refund is virtually impossible. It is best to avoid them altogether and, instead, use the services of a proven and verified Chinese producer.

China Continues to Offer Immense Opportunity:

The world’s economies continue to wax and wane as industries grow and shrink. The Internet facilitates connections and communications that are unprecedented in all of time and allows international enterprises to review surprisingly accurate data about the activities of their global competitors and partners. Applying international statistical data to corporate activity gives every international manufacturer the ability to make informed and economically sound decisions about next steps. Having been involved in international risk mitigation systems for 17+, we have the knowledge, skill and connections necessary to ensure that your contract is properly established, followed and fulfilled, even as China lurches through its sometimes challenging growth process.


Contact us today to discuss our extensive list of exceptional Chinese manufacturing facilities.


If you would like to know more, you can also download a free report “8 Problems Businesses face when sourcing from China here.


This blog was written by Carsten Primdal, an independent consultant who helps businesses that have manufacturing done overseas – especially in China – to minimize supply chain risk.Drawing on years of on-the-ground experience and a strong understanding of the cultural and commercial context, Carsten is passionate about helping his clients gain greater control over the risks most companies face knowingly or unknowingly.

Urgent issues? Questions? Concerns? If you are considering/already buying from Chinese factories and would like more information, please feel free to contact us for an obligation free talk.

I can be reached at or on (+61) 413 089 020



You may also like to read some of my other blogs. They can be found here:

China’s Economic Overhaul Will Improve Global Supply Chains

Manufacturing Compromises Can Ruin Your Brand

Tenacity and Communications Reduce Risk of Chinese Child Labour Law Violations

Safety Study Identifies Chinese Supply Factory Risks

China Manufacturing Industry Challenges Trigger Inspections, Consequences

Risk Mitigation Can Prevent Chinese Supply Chain Disruption

Tips and Traps of Contracting in China

Keeping Your Supply Chain Green: Avoiding the Environmental Polluters when sourcing in China

Ensure Timely Contract Compliance with a Chinese Supply Chain Expert

Two Key Questions To Answer Before Onboarding Your Chinese Manufacturing Supplier

Off-Shore Manufacturer’s Certificates Require Credibility

Factory Planning Principles Improve Supply Chain Quality

Mitigating Risk of Quality Fade in Overseas Manufacturing Facilities

How to Assure your “Green” Supply Chain in China

ChAFTA Opens Doors for increase in China-Australia Business relations

China Verification for Your Manufacturing Supplier Needs

Australian Industry Agreements Encourage More Chinese Factory Verifications

China Factory Verification: Check Before You Buy

Frozen berry recall highlights potential supply chain risks in offshore production

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