China As Distribution Center. Explained.
One of the fascinating things about having a China law practice is the front row seat it provides into the evolving trade relationship China has with the rest of the world. One of the things I have seen happening in far greater numbers over the last year or so are US companies establishing their worldwide or Asian distribution centers in mainland China. I have seen this from companies that used to have their only distribution center in the United States and I have seen this from companies that have distribution centers all around the world:
Chaina Magazine (the Magazine of the Global Supply Chain Council) just ran a very detailed article by Damon R. Paling, of PricewaterhouseCooper's Shanghai office, entitled, "Planning for Economic Recovery: Establishing a Regional Distribution Centre in China." The article "summarizes the experiences of a US luxury retailer as they evaluated options for establishing a Regional Distribution Centre (RDC) on Mainland China," and in doing so, makes for an excellent primer for anyone thinking of setting up distribution in China.
I recommend it for those looking to engage in product distribution from China.
Comments
Dan,
Useful article. Certainly one of the boom areas in China.I have for some time pondered how China's tougher transfer pricing provisions may impact upon the choice of location of such centres.
Posted by: Matthew | December 15, 2009 9:36 PM
The Chinese seem pretty amenable to the influx of American (or other nations') business. I guess communists and capitalists can all agree that cash is king.
Posted by: Joe | December 15, 2009 11:01 PM