What is the right or wrong?
1) Mom teaches, "Never blame innocent people. " In this case, don't blame who were hired by Mattel to earn money using their honest labor--Chinese workers.
2) Mom teaches, "Men created equal. Don't always think yourself deserves better attention than the others." In this case, dangerous China was regarded as murder of our precious US kids.
Mattel own their Chinese factories, hire their own people, design their own toys, buy their own supply, and inspect their own quality before selling to US kids. Questions,
1)Who made a fortune using those Chinese resources?
2)Who shall be blamed when Mattel toys hurts or kills?
Sourcing from China is hurting some of our jobs, but it is providing the luxury life we can't afford using our own labor.
Don't grudge on a couple of incorrect sourcing practices made by certain careless companies, and use this as a weapon to hurt the other people's feeling. That’s unfair and wrong.
Read more: Mattel Official Delivers an Apology in China - New York Times
Wednesday, September 26, 2007
Monday, September 24, 2007
Mattel Toy Recalls -- Mattel Apologized to China
Finally, Mattel apologized to China, the place that created a fortune for them, but was blamed by Mattel's own fault. Mattel owns the factory, its own people does the quality inspection, and does its own design...
Mattel loses moral high ground to China (Shades of Gray)
Mattel loses moral high ground to China (Shades of Gray)
Friday, September 21, 2007
USTR Seeks Comments on WTO Dispute with China over Subsidies
Issue 19, 2007 (13 September)
The Office of the U.S. Trade Representative is seeking comments by 5 October on the issues raised in a WTO case filed by the U.S. against China's continued use of subsidies that appear to be prohibited by WTO rules. The U.S. argues that China maintains measures that provide enterprises in China with refunds, reductions or exemptions from taxes otherwise due to the government on the condition that those enterprises purchase domestic over imported goods or meet certain export performance criteria.
The U.S. and Mexico held two rounds of consultations with Chinese authorities on this matter earlier this year in an effort to reach a mutually agreeable solution. The consultations did not resolve the dispute, however, which compelled the U.S. and Mexico to file separate requests on 13 July for the establishment of a dispute settlement panel. China blocked those requests on 24 July but they were subsequently re-filed and accepted on 31 August, which means that a panel will be established shortly. The panel will have six months from its establishment to issue its final report to the parties involved in the dispute. The report will be made available to all WTO members three weeks later, at which time China, the U.S. or Mexico will have the option of filing an appeal with the Appellate Body. If that occurs, the Appellate Body would have a maximum of 90 days to render a final verdict.
News Source
The Office of the U.S. Trade Representative is seeking comments by 5 October on the issues raised in a WTO case filed by the U.S. against China's continued use of subsidies that appear to be prohibited by WTO rules. The U.S. argues that China maintains measures that provide enterprises in China with refunds, reductions or exemptions from taxes otherwise due to the government on the condition that those enterprises purchase domestic over imported goods or meet certain export performance criteria.
The U.S. and Mexico held two rounds of consultations with Chinese authorities on this matter earlier this year in an effort to reach a mutually agreeable solution. The consultations did not resolve the dispute, however, which compelled the U.S. and Mexico to file separate requests on 13 July for the establishment of a dispute settlement panel. China blocked those requests on 24 July but they were subsequently re-filed and accepted on 31 August, which means that a panel will be established shortly. The panel will have six months from its establishment to issue its final report to the parties involved in the dispute. The report will be made available to all WTO members three weeks later, at which time China, the U.S. or Mexico will have the option of filing an appeal with the Appellate Body. If that occurs, the Appellate Body would have a maximum of 90 days to render a final verdict.
News Source
Risk Factors in China Sourcing
Author: Dylan Sun | Posted: 21-09-2007
Risk factors involved in China sourcing are worth taking note off before setting off. It is prudent to build in mechanisms to offset risks in China sourcing from the beginning.
-Risk #1 in China Sourcing – Renewed Competition
-Risk # 2 in China Sourcing – Question of Legal Protection
-Risk # 3 – Is The Cost of China Sourcing Really Low?
-Risk # 4 – Contradictions and opportunities for China sourcing
Full Article
Risk factors involved in China sourcing are worth taking note off before setting off. It is prudent to build in mechanisms to offset risks in China sourcing from the beginning.
-Risk #1 in China Sourcing – Renewed Competition
-Risk # 2 in China Sourcing – Question of Legal Protection
-Risk # 3 – Is The Cost of China Sourcing Really Low?
-Risk # 4 – Contradictions and opportunities for China sourcing
Full Article
Wednesday, September 19, 2007
China Sourcing: Strategies and Advantages
Author: Dylan Sun
For most of the companies China manufacturers offer three broad benefits for savings.
1.The first is related to raw materials and labor. Producers in China benefit from a massive pool of workers, stretchy working conditions.
2.The second is the one sometimes ignored called as wealth avoidance. These include lower setup land and factory costs.
3.The third advantage is a more recent enough lies in low cost product design and research and development actions.
Read Full
For most of the companies China manufacturers offer three broad benefits for savings.
1.The first is related to raw materials and labor. Producers in China benefit from a massive pool of workers, stretchy working conditions.
2.The second is the one sometimes ignored called as wealth avoidance. These include lower setup land and factory costs.
3.The third advantage is a more recent enough lies in low cost product design and research and development actions.
Read Full
Tuesday, September 18, 2007
Four Observations on Import and Export Prices and the Dollar
This critics talks about Importing prices raise and Dollar re-evaluation, from an economist's perspective.
Related other link: the reasons of importing price raise, more digetstive!
Read here here
Related other link: the reasons of importing price raise, more digetstive!
Read here here
China Curbs Garlic, Ginger Exports to U.S. for Safety Reason
Responding to mattel toys' recall and toxic pet food from China, Chinese government is working on from inside to prevent more incidents like these. Good job.
Read Full Story
Read Full Story
Monday, September 17, 2007
What Makes a Good Sourcing Inquiry-China Sourcing Step 1
A good inquiry get you quotes in no time.
A good inquiry saves confusion and leads to efficient communication with Chinese suppliers.
A good inquiry starts good DIY Sourcing business.
What are necessary elements in a good inquiry?
How questions should be asked?
View full article at
http://www.outsourcinginasia.com/forum/index.php?topic=3.0
This above content talks about the sourcing step one. A full import-from-China process are accessible at http://www.outsourcinginasia.com/resources_in_china/import_from_china.html
A good inquiry saves confusion and leads to efficient communication with Chinese suppliers.
A good inquiry starts good DIY Sourcing business.
What are necessary elements in a good inquiry?
How questions should be asked?
View full article at
http://www.outsourcinginasia.com/forum/index.php?topic=3.0
This above content talks about the sourcing step one. A full import-from-China process are accessible at http://www.outsourcinginasia.com/resources_in_china/import_from_china.html
Friday, September 7, 2007
How Government Decisions Change Sourcing Jobs and US Consumers?
Critics and comments on Chinese Currency Reevaluation and How well US Companies doing on Exporting to China
In international trade, currency inflation would discourage its country's exporting and encourage importing. This is the main reason why US government takes all effort to inflate Chinese RMB currency, therefore, to encourage more US exports to China and deter further Chinese products invasion.
Following the path, Chinese government in 2007 issued a couple policies. Starting in June 1st, 2007, many items that Chinese manufacturers export would face increased tariff rates. Below are from the announcement of the State Council Tariff Regulation Committee of The People's Republic of China.
Levy 5% provisional export tariff rate on 53 steel products such as coiled, sheet, wire steel and 5 natural resources items such as Ammonium metatungstate, magnesite, Burning magnesium, etc.
Levy 10% provisional export tariff rate on 30 steel products such as steel of the shot, Angle Profile, etc. and coal tar, natural graphite, rare metal, refined lead, oxide dysprosium(Dy), oxide terbium(Tb), Not unwrought roll zinc and 21 items that are non-ferrous metal waste and scrap.
Levy 15% provisional export tariff rate on 33 items that are domestic rare metal raw mineral such as hard coke, steel billet, steel ingot, pig iron, a portion of iron alloy, fluorite, wood-non-coniferous and nickel (Ni), chromium (Cr),wolfram(W), manganese(Mn), molybdenum(Mo), rare-earth metal, etc.
The above three categories encompass 142 tax items.
Among, 110 items had non tariff before, and 32 items increased from 5% to 10%, or from 10% to 15%. China export manufacturing, and our sourcing projects that involve with above resources is encountering a significant increasing cost challenge. I bet a lot of Chinese product purchasers have had some taste already.
On the other hand, Chinese government is encouraging import by lowering provisional tariffs will apply to 209 types of imported products. Among these, key parts and components such as positive displacement pumps, seals, parts for roller bearings and valves, compressors and parts for air-conditioning machines and refrigerators, parts for engineering machines, parts for cameras, parts for television sets, and lenses for video cameras, will be subject to provisional tariff rates of 2-6%. Certain products for daily use will also enjoy lower provisional import tariff rates of 6-17%. These mainly include baby food, kitchen utensils, tableware, food processors, corrective lenses, building materials, ornamental ceramic articles and household appliances (hktdc.com, 2007). Before, some products' going-into-China tariff could be as high as 25%.Under conforming with WTO obligation pressure, Chinese currency is undergoing around 6% inflation in the last couple of month. On the other hand, US currency is depreciating the same value when purchasing from China.
What does that mean for our China Sourcing Business? We need to pay extra 6% for everything we buy from China. For common US consumers, in about 2 month, they would start to feel the their luxury life has some change, they would be paying more to buy less.
This might be something US citizens not really like to see. However, this is what lots of enthusiasts really liked trying to use US exports to gain back job opportunities. But does it really work?
The trade deficit with China might be able to improve with more exports. Currently it's 1 to 5 in term of Exporting comparing to Importing trade with China (U.S. Census Bureau's data, 2007).
However, is Chinese currency inflation a good way to encourage exporting to China by sacrificing many consumers' lifestyle?
Use the link below or see attached, let's take a look at China Customs' number on export-to-overseas (yellow) and import-into-China (blue) in 2005. USA just doesn't do as close to Japan and Korea, not even as well as EU.
In international trade, currency inflation would discourage its country's exporting and encourage importing. This is the main reason why US government takes all effort to inflate Chinese RMB currency, therefore, to encourage more US exports to China and deter further Chinese products invasion.
Following the path, Chinese government in 2007 issued a couple policies. Starting in June 1st, 2007, many items that Chinese manufacturers export would face increased tariff rates. Below are from the announcement of the State Council Tariff Regulation Committee of The People's Republic of China.
Levy 5% provisional export tariff rate on 53 steel products such as coiled, sheet, wire steel and 5 natural resources items such as Ammonium metatungstate, magnesite, Burning magnesium, etc.
Levy 10% provisional export tariff rate on 30 steel products such as steel of the shot, Angle Profile, etc. and coal tar, natural graphite, rare metal, refined lead, oxide dysprosium(Dy), oxide terbium(Tb), Not unwrought roll zinc and 21 items that are non-ferrous metal waste and scrap.
Levy 15% provisional export tariff rate on 33 items that are domestic rare metal raw mineral such as hard coke, steel billet, steel ingot, pig iron, a portion of iron alloy, fluorite, wood-non-coniferous and nickel (Ni), chromium (Cr),wolfram(W), manganese(Mn), molybdenum(Mo), rare-earth metal, etc.
The above three categories encompass 142 tax items.
Among, 110 items had non tariff before, and 32 items increased from 5% to 10%, or from 10% to 15%. China export manufacturing, and our sourcing projects that involve with above resources is encountering a significant increasing cost challenge. I bet a lot of Chinese product purchasers have had some taste already.
On the other hand, Chinese government is encouraging import by lowering provisional tariffs will apply to 209 types of imported products. Among these, key parts and components such as positive displacement pumps, seals, parts for roller bearings and valves, compressors and parts for air-conditioning machines and refrigerators, parts for engineering machines, parts for cameras, parts for television sets, and lenses for video cameras, will be subject to provisional tariff rates of 2-6%. Certain products for daily use will also enjoy lower provisional import tariff rates of 6-17%. These mainly include baby food, kitchen utensils, tableware, food processors, corrective lenses, building materials, ornamental ceramic articles and household appliances (hktdc.com, 2007). Before, some products' going-into-China tariff could be as high as 25%.Under conforming with WTO obligation pressure, Chinese currency is undergoing around 6% inflation in the last couple of month. On the other hand, US currency is depreciating the same value when purchasing from China.
What does that mean for our China Sourcing Business? We need to pay extra 6% for everything we buy from China. For common US consumers, in about 2 month, they would start to feel the their luxury life has some change, they would be paying more to buy less.
This might be something US citizens not really like to see. However, this is what lots of enthusiasts really liked trying to use US exports to gain back job opportunities. But does it really work?
The trade deficit with China might be able to improve with more exports. Currently it's 1 to 5 in term of Exporting comparing to Importing trade with China (U.S. Census Bureau's data, 2007).
However, is Chinese currency inflation a good way to encourage exporting to China by sacrificing many consumers' lifestyle?
Use the link below or see attached, let's take a look at China Customs' number on export-to-overseas (yellow) and import-into-China (blue) in 2005. USA just doesn't do as close to Japan and Korea, not even as well as EU.
- In 2005 Japan sold almost $100 billion worth of products to China
- The U.S. only sold about half that much, even though our economy size is 2.5 times of Japan's
- Even a comparable EU (in terms of both cultural similarity and GDP clout) did 50% better than we did
US companies haven't do a good job in the history. How much do you think Chinese currency inflation could change the current trade deficit and make us do better?
This might be able to tell how much we are shooting at a wrong target, Chinese currency.
Some Chinese consumer research shows, Chinese consumers usually prefer US products over any other country's.
- Are there something missing, why China is the only one to blame?
- Does US company really understand Chinese market?
- Are there some education needed to equip US companies to sell more to Chinese? For American exporters, there are a lot to learn about the other side of the world, China. For someone who's interested to find out answers to this topic, you can visit http://www.sellinasia.com/.
Like many Chinese manufacturers are losing their jobs, a lot of sourcing consultants like us would soon join them in the States. It is worthy only if US exporting could land us more jobs, right?
However, did you know,
“If you took every one single job in the US today and shipped it to China,… It would still have labor surplus (http://www.albinoblacksheep.com/video/shifthappens).”
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