Mexico versus China for Manufacturing A growing number of companies manufacturing in China are looking to move their manufacturing out of China entirely or to reduce their footprint there by adding manufacturing elsewhere. The choice of manufacturing location can profoundly impact cost-effectiveness, logistical efficiency, and overall competitiveness. This post focuses on the transition from manufacturing
The Power of Well-Crafted China Contracts In The High Cost of China Contract Mistakes, I discussed the importance of having the right person craft your China contracts. I am often asked (usually right after I quote our fee) whether a China contract I am proposing to write “is even enforceable in China.” I always give
The “Rush it Through” Attitude in Chinese Manufacturing A recent newsworthy incident in China where construction workers damaged a section of the Great Wall by cutting through it in order to save time highlights the “get it done quickly” attitude that permeates Chinese manufacturing. See China’s Great Wall damaged by workers looking for shortcut. This
Navigating the New Era of International Manufacturing The landscape of international manufacturing contracts has undergone significant shifts. If you’ve sensed this change, rest assured, you’re not alone. Gone are the days when international procurement largely meant buying “off-the-shelf” products like t-shirts or computer bags — items that followed universal standards. The game began to change
Should Your China Manufacturing Contract Be in English or Chinese? Many lawyers default to English without considering the downsides. In this post, I will explain why manufacturing contracts usually fare better with Chinese as the official language. I will highlight the advantages of a Chinese language agreement and also discuss how my law firm’s experience
Got an email this morning from a company asked only “for advice” about importing their specific product from China into the United States and the EU. My response was as follows: My advice is if you are not paying in advance, you do some combination of the following: Chinese Company Reputational Reports: You should have
Introduction Imagine a child’s toy, gleaming with bright colors and designed for endless hours of fun. A toy which turned out to hold a lurking danger due to poor manufacturing processes. A month after hitting the shelves, there’s a widespread outcry. Parents are furious, the media is ablaze with criticism, and the company responsible faces
Introduction A toy importer, thrilled about getting its toys from Vietnam at a great price paid $2 million upfront to a supposed “toy maker”. The dream turned into a nightmare when they realized there was no such Vietnamese toy maker, and no toys would ever materialize. This importer isn’t alone. Many foreign companies have faced
Navigating International Manufacturing Agreements: The Power of Term Sheets Outsourcing manufacturing requires meticulous planning, skillful negotiation, and unwavering attention to detail. International Manufacturing Terms sheets can streamline this process, by helping manufacturers and product buyers establish crucial terms before embarking on the formal drafting of a comprehensive Manufacturing Agreement. The Role of Term Sheets Consider
The shifting winds surrounding China geopolitics have left many companies feeling adrift. “We have been trying to diversify away from China manufacturing for years, but we’ve only managed to move about 10% of our supply chain out,” a client recently told me. “China still makes 80% of our products. Even if we wanted to pull
