Nov 17 2007
“The end of Cheap China is in sight”
A friend of mine recommended an good article about sourcing issues (c) in China today. In summary:
1. Both buyers (clients) and the suppliers (manufacturers) share the blame for some of the quality issues.
2. A main driver behind the quality problems is the pressure on lowering prices.
3. Chinese are improving their QA at their own pace.
4. Competitive pressure, trade policy shift and now quality concerns may undermine China’s price advantage
It appears that the article was penned by a Chinese. It is well-written but just the POV is naturally defensive and sympathetic. I am surprised Wharton editors would let it out in verbatim.