Saturday, October 24, 2020

Is it still a wise choice to purchase from China starting in 2020 and the future?

Some of my clients doubt it is still a wise choice to purchase from China starting in 2020 and the future due to increased cost. Put me in their shoes, I couldn't find an alternative that could serve me both on profit and benefit for a wholesaler's business future.

Firstly, I could consider to source from India, also a large country with cheaper labor costs, but China has the advantage of its native product materials and technically better products, which could save me a lot of trouble. Comparing with cost and product performance, China would be a winner.

Secondly, the biggest advantage to source from China is that you can't find any monopoly of products. Thus, you could find many producers produce the same products, once the product goes wrong, is easy to get it fixed with components with very little cost. Different from the products from the US, Japan, and Germany, if their products go wrong, you can only find the components from the original manufacturer, which is a high cost, and also very inconvenient. The closer to life example is that many companies may have used HP DESKJET 2132 and Canon printer, once the ink goes out, you can only buy a new ink cartridge which is almost the same price to buy a new printer, but the ink cartridge produced in China can still add ink to use, which is a very small cost compares to buy a new ink cartridge.

Thirdly, China is a very friendly country, historically not showing hostility to other countries and people are well cultivated to treat others with politeness and justice. Is very easy to make friends with Chinese, they don’t have a bias like American white treating the black, and they’re modest and do not show deference to people of rich and poor. Chinese people are very hardworking and they’re rigorous on the work, thus you can trust the product produced by the workers. The most prominent example is the iPhone that most people love it across the globe, which was assembled in China.

Fourthly, China is a law enforced country. Companies are regulated by law, thus is very safe to trade with many Chinese companies. Many China companies are willing to keep low profit to themselves, thus is very easy to get profit if you import products from China.

Finally, China's mainland political circumstance is very stable, thus businesses are very rare to be interfered with by political factors, which provides many global businesses with a safety belt to do business with Chinese companies.

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