Tips to Run Your China Factory Smoothly in the Turbulent Time of Corona Pandemic

China’s business ecosystem of networked suppliers, component manufacturers are some of the biggest reasons companies manufacture their products in China. China’s emergence as a manufacturing powerhouse has been astonishing. Although the anti-China mentality is growing stronger all across the globe because of the Corona pandemic, companies simply cannot take their manufacturing units out of this country that easily.

In an environment where global balance sheets are fractured because of the pandemic, relocating entire supply chains from China is easier said than done. From skilled labor to highly advanced logistics, from state-of-the-art ports to ultra-modern transportation system, China provides an integrated infrastructure that is tailor-made to perfectly meet the strict deadlines that international companies operate on.

If you are manufacturing your products in Chinese factories, simply following these tips will help you a lot in successfully maintaining your competitive advantage:

Pay extra attention to quality assurance

China’s manufacturing sector has matured significantly. Factories have improved their processes, quality control, and worker training over time. Buyers can purchase high quality products made in China. However, all depends on the conditions requested. Regardless, many other factors can affect the quality of the products made in China even at a fair price and reasonable delays. If you are struggling to get the quality you need, it’s important to have an intimate understanding of your product and the manufacturing process so you can prevent problems earlier. Pre-shipment inspection (PSI) is one of the critical elements in your company’s quality control procedures – and an important step to verify the quality of Chinese products. For complex products, quality needs to be assured at each step, not just controlled at the end.

Keep in touch with the China employees

Identify the person who will be your main contact with the factory. It is important to maintain a daily conversation with your production in-charge in China. You will get a daily briefing about how everything is going on and other stages of production. Insist on having a quality control employee – not the boss or the supervisor – perform a dimensional inspection of a product while you watch. Your virtual presence will do wonders for as you will have the complete control and authority.

Make Chinese your employment contract’s governing language

You should clearly state in your employment contract that Chinese is the official language. It should also be in clear English so your foreign management and HR people can make good use of them in making their HR decisions.

We need to accept the fact that global companies should streamline their production units in China rather than trying to ditch this country. The world is dependent on China for manufacturing. Beijing has cemented itself as the heart of global manufacturing, with more advanced internal supply chains than other possible substitutes.

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How Chinese Cannabis Companies can Penetrate the US Market

China is the world’s major cannabis planting area, accounting for about half of the world’s total area. Two of China’s 34 regions are leading a boom in cultivating cannabis to produce cannabidiol, or CBD, which has become a consumer health and beauty craze in the United States and beyond. Legal cannabis is a booming market worldwide, expected to be worth US$57 billion in 10 years, with legal adult recreational use accounting for 67 per cent, and medicinal marijuana taking up 33 per cent, according to Arcview Market Research and BDS Analytic.

Unauthorized cultivation or trade in marijuana, however, is strictly prohibited as outlined in Article 357 of the Criminal Law of the People’s Republic of China. Legal cannabis, however, is a booming industry over here. Five of the top ten Cannabis Sativa patent holders are Chinese according to the World International Property Organization patent scope database.

Now the Chinese cannabis companies are trying to enter the US market. The regulatory problems are the biggest barriers for the Chinese as well as the other cannabis companies of the other nations to enter the US market. Companies are seeking help from the international cannabis lawyers to get a good view of the US cannabis market. For the Chinese cannabis producing firms, it is important to know a few questions about the US market, such as-

  • Which cannabis products can be imported into the United States?
  • Which consumer markets are most likely to be receptive to their products?
  • Which U.S. states have favorable regulatory licensing and enforcement environments?
  • Which financial, logistics, and insurance companies they can and should be working with?

 

Although North America continues to be a hotbed of activity for the cannabis sector, the market has become saturated and this has put pressure on the price of cannabis. In the US, cannabis regulations are determined at the state level and each state has different rules when it comes to regulating the industry.

The United States federal government still classifies “marijuana” as a Schedule I controlled substance with no medical use and a high potential for abuse. Thus, federal law effectively prohibits importation of marijuana into the United States. Federal law prohibits human consumption and possession of schedule I controlled substances. Products containing THC, the hallucinogenic substance in marijuana, are illegal to import. Products that do not cause THC to enter the human body are therefore legal products.

At the federal level, cannabis remains a controlled substance, but more states are voting to legalize marijuana in one form or another. And cannabis stocks are growing—no pun intended—in popularity on several major exchanges. Hemp is only legal for educational and research purposes through state pilot programs. CBD derived from Hemp and Marijuana is still schedule 1 in the United States, so operating within the state’s laws is important to be legally compliant.

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