Because of this blog, our China lawyers get a fairly steady stream of China law questions from readers, mostly via emails but occasionally via blog comments or phone calls as well. If we were to conduct research on all the questions we get asked and then comprehensively answer them, we would become overwhelmed. So what we usually do is provide a super fast general answer and, when it is easy to do so, a link or two to a blog post that provides some additional guidance. We figure we might as well post some of these on here as well. On Fridays, like today.
For obvious reasons, our China lawyers have been getting the following question a lot lately: is China still a good place to make my xyz product?
My response when I get this question is typically as follows.
For most companies in most industries, yes. Where else are you going to have your xyz product made? Have you looked at any other countries? Have you found any that can make them for anything even approaching the prices you are getting in China? If you are big enough that you can set up your own factory in Vietnam or Thailand or Mexico or Indonesia or wherever, we should talk about that. Otherwise, you should probably do what most companies your size are doing and that is to continue to have your products made in China while always keeping a watchful eye for opportunities to diversify your supply chain.
What are you seeing and thinking?