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ARTICLE · 10 JUNE 2016

Manufacturing & Sourcing: in China for China

Many international companies are considering options such as establishing their manufacturing or trading entity in China.

ChinaInternational Law

Many international companies are considering options to organize their sales into the Chinese market of China-sourced product, for example by establishing their own manufacturing or trading entity in China.

Companies have long sourced a broad range of products from China. In recent years, increasing wages in China have made Bangladesh, Vietnam, Mexico and even countries in Eastern Europe more attractive for sourcing low-cost goods, with the new phenomenon "re-shoring" gaining some popularity as well. Nonetheless, the availability of global supply chains combined with high skills, good logistics and the abundance of workers (even if no longer the cheapest) will ensure that China remains the primary destination for global sourcing managers for many years to come.

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