2024: The New Face of China Supply Chains – 5 Things You Need to Know
As 2024 unfolds, the dynamics of global business remain profoundly impacted by changes in China’s approach to supply chains. While international travel is returning to normal in most regions, China’s evolving policies and challenges still necessitate a careful approach for effective business relationship management. Here’s what you need to know:
1. Navigating Travel Restrictions and Factory Access
Although travel to China is no longer entirely off the table, it remains a logistical challenge for smaller British businesses. Fast-track visas exist for essential personnel, but they are typically reserved for larger organisations. Factor in potential quarantines and sudden policy shifts, and the cost-benefit of a visit may not stack up. A robust alternative strategy, such as leveraging trusted local representatives, is critical.
2. Compliance and Pandemic-Era Regulations
China’s strict health monitoring systems—using platforms like Alipay and WeChat—remain in place, enforcing compliance through QR codes. Visitors or locals lacking the all-important “green code” face severe restrictions, from factory shutdowns to barred access to restaurants and shops. Moreover, a single COVID-19 case in a factory can result in a two-week closure. Staying updated on local regulations, which shift frequently, is essential to avoid disruptions.
3. Short-Term Savings vs. Long-Term Stability
While some Chinese factories face reduced orders and offer lower prices to attract business, a short-term switch could backfire. Temporary savings might disappear when a supplier’s recovery stabilises, leaving you with inflated costs or reduced service quality. Stick to long-term partnerships that have proven reliability rather than chasing short-term gains.
4. Audit, Verify, and Build Trust Remotely
If you must seek a new supplier, remote audits are your best ally. Employ trusted third-party auditors to inspect potential partners. Verify their credentials through photographs, calibration records, and references from longstanding clients. Blindly trusting online profiles without on-the-ground validation is a recipe for risk.
5. Video Calls Are Useful, But Not Foolproof
Video conferencing has been a lifeline, but it comes with its challenges. Language barriers and technical misunderstandings can hinder progress. Supplement calls with comprehensive documentation, translated into Chinese, to ensure all parties are on the same page. Never assume verbal agreements alone will suffice.
Final Thoughts
The supply chain landscape in China continues to evolve, influenced by ongoing global economic shifts and local policy changes. For businesses facing challenges or considering changes, now is the time to reassess strategies and secure reliable support.
For more insights or tailored assistance, contact us at mail@onepointtwo.com or call 01225 460 388. Let us help you navigate 2024 with confidence.
