Karl Alomar, senior partner at China Export Finance, warns buyers that suppliers in China are struggling with globalisation as much as them.
“It is important to remember the logistical difficulties are not all one way. Chinese manufacturers can have as hard a time trading with overseas buyers as purchasers do with them. It's easy to generalise and talk about Far Eastern competitive advantage, but these benefits are eroding fast and Chinese manufacturers have to compete hard with each other, and increasingly with emerging countries such as Vietnam, for business. There is also a lack of finance opportunities available in China - Chinese SMEs often find it difficult to secure reasonable credit terms locally, payments can be problematic and supply chain financing is in its infancy.”
How can buyers make it easier for overseas suppliers to do business with them?