Is your company constantly playing catch-up by moving from low-cost to lower-cost production hubs? If the answer is yes, you probably need to rethink your sourcing strategies.
In an interview with Global Sources, Kristina Koehler, China Director of the Klako Group says the country with the lowest labor costs may not be the best choice. Importers need to assess a range of other factors such as the cost of transportation and electricity, supply chain risk, workforce skills, and tax incentives before choosing a location.
She also elaborates on the importance of signing contracts when doing business in China, and gives advice on how importers can protect their IP in the country.
Kristina has been working in China's legal and accounting industry since 2003 advising foreign clients on tax, accounting and trade-related issues. She has worked on numerous complex transactions including foreign direct investment and M&A deals.
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.