Risks of China Sourcing- A Farce

China has become a prime location and a source of importation for a variety of products. The debate on China Sourcing is growing these days. Good quality and safe products are forming a key focus rather than quotas and tariffs in international trade issues. Hence, it has become necessary to view China Sourcing in the wake of the quality problems that are happening in the B2B market. As a part of the international trade, China sourcing has become more and more important. But there were certain quality issues with regards to China suppliers.

There have been issues of quality in the supply of drugs and food products. There have been a few problems in the finished products category too like tire. However, as a part of the large volumes of trade, some problems are inevitable. But, these instances have been used to demean the importance of China Sourcing and raise questions against it. Still, one point is clear, that the distributors and wholesalers have to be cautious and have to pay notice to their sourcing partners in order to avoid risks of sourcing in the ever increasing international trade.

There have also been debates about the safety of products that China supplies. An incident was reported in New York Times about a bit of diethylamide glycol being found in the tooth paste. In a short period of about 15 years, China has transformed from a struggling destination to a country that lets other struggle to have a share in international trade. It has been said that this has been possible because of the stringent rules and regulations regarding safety standards.

Moreover, risks are part and parcel of increasing business volumes. There are problems, not just in China Sourcing but also in several other developed nations and these shall continue to grow even for China with the increasing proportions of China sourcing.
Safe sourcing is the responsibility of both, the buyer and the supplier. But, it is the buyer who has to keep a caution while choosing the sourcing partner as the supplier may hardly change the product mix or quality for one single buyer. The companies which source their goods and raw materials all the way through the global sourcing are required to have sound supply chain mechanism in place in order to ensure the levels of quality are as per their requirements.

As with any sourcing, one is required to hedge his risk, similar is the case in China sourcing. It is to be noted that the benefits of costs and higher market share resulting in increased revenues much higher than those of the few instances of quality discrepancies. The whole concentration on quality matter does not just become the responsibility of China manufacturers, but also becomes the responsibility of the sourcing nations reflected in their involvement in the sourcing process and the procedure followed to choose the sourcing partners as well as the quality control processes.