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4 Risks to buy from China

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4 Risks to buy from China

Although the relative cost of manufacturing in China has risen in recent years, the country is still often the cheapest location for most of the developed and developping country's retailers and manufacturers to source goods or parts.
 
Buying directly from China can provide significant cost savings for a small-business operator -- up to 50 percent or more.
 
According to a survey from Dean Becker, director of the center for economic and policy research,U.S.A,salary for factory worker in China is now 2-3USD/hour,in America, 18-20 USD/hour, which is nearly 8 times.Production efficiency? Many Chinese factories import machines from Germany and Japan.
 
According to JMTDA(Japan Machine Tool Distributors Association),in 2017, Japan CNC machines export to China raise 21.1% than 2016.China is the biggest market for precision machines.
 
But you face risks and considerations, including the need to understand cultural and language differences and the processes that Chinese factories use to sell to businesses and individuals.
 
1.Quality of Work
 
China gets quite a bad rap for poor quality in manufacturing.Manufacturing more highly sophisticated goods can be riskier than something simpler.
 
2.Communication
 
Cultural misunderstandings arising from miscommunication are one of the biggest challenges which foreign companies face in China. Although there are an increasing number of Chinese people highly proficient in English.
 
3.Higher Minimum order quantity
 
Chinese factories work are far lower profit margins than those in the U.S. As a result, they are almost never able to accommodate one-offs and, generally speaking, their minimums are often higher than other countries.
 
4.Shipping
 
Shipping by sea takes at least 30 days.Naturally,Shipping by air takes at least 2 days. shipping domestically can literally be 1 day. So depending on what you're selling, this may make a big deal.
 

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