Component Manufacture, UK - China Blog.

2012

2012-01-04T08:31:00.000-08:00

Best wishes for an excellent and prosperous 2012.

Chinese set to Invest record amounts into European manufacturing.

2011-10-03T01:18:00.000-07:00

Investment into Europe by Chinese manufacturing companies is set to reach record levels in the second half of 2011. The total value of the transactions announced in the first six months of the year is well over US$1billion, and this figure is expected to increase by the end of the year. This will make it the largest volume of deals announced in a decade, surpassing the record of eight deals into Europe that were completed in 2010.

China Gives CK Polimers a Green bill of health.

2011-10-03T01:09:00.000-07:00

CK Polimers (Hong Kong) the Chinese operation of Lincolnshire based CK Group, has been awarded an AQSIQ licence, accreditation required by all companies exporting recyclables to China.

The AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine of the Peoples Republic of China) registration is intended to ensure that recyclables exported to China are free of contaminanets and therefore pose little or no risk to China's environment or public health.

As new markets are developed in South Asia, this will be a big boost to delivering recyclables tou end user partners and offers a consistant route to market for our supply customers.

Chinese New Year - 2012.

2011-09-30T03:39:00.000-07:00

In 2012, it becomes the year of the Dragon, the most auspicious animal in the Chinese Zodiac, and the only mythological creature. The Dragon epitomises the Yang (Male/Warm) energy.

The year of the Dragon is associated with Honesty, Sensitivity, Enthusiasm and a great passion for life.

Chinese New Year falls on the 23rd January, 2012.

Famous people who were born in the year of the Dragon.

Hairdresser - Vidal Sassoon.

Singer - Fats Domino.

Comedians - Bob Monkhouse and Jimmy Tarbuck.

Actor - Al Pocino.

Ex Beatle - John Lennon.

A new hotel opens every four days.

2011-08-22T07:00:00.000-07:00

China is opening an International Hotel every four days, making it the worlds fatest hotel market, Shanghai Morning post reported.

From 2010 until 2013, 90 new Internationally branded hotels will have opened every year, according to the latest Jones LaSelle Survey quoted by the paper.

Due to the rapid rate of urbanization and property development in China, a large number of hotels can appear in a short period of time. While this increase has led to more fierce competition, a high demand for hotels has alleviated potential competition-related problems.

The paper also stated that the increase in business trips contributed to the healthy performance of the hotel market in 2010 and the first half of 2011, which also allowed hotels to increase incomes through occupancy-driven rather than price-driven patterns.

Profits of Tsingtao Brewery rises 21.62% in H1 of 2011

2011-08-22T06:42:00.000-07:00

Tsingtao Brewery Co., China's second-largest brewer by volume, said that its first-half profits rose 21.62% year-on-year due to higher sales volume and expanded production capacity.

Net profits rose to 989.9M Yuan (US$155M), or 0.73 Yuan/share, from 813.9M Yuan, 0.6Yuan, one year earlier.

Sales climbed 21.1% to 11.87billion Yuan. The company sold 3.75M kilolitres of beer during the first half, a rise of 20.6% year-on-year.

The brewer increased its production capacity and introduced diversified products to cater to growing demand in the world's most populous country.

The company aims for annual beer sales of 10M kilolitres in 2014.

However the company said exchange rate fluctuations are likely to affect its margins as it relies on imported barley to brew beer.

The countries beer output increased 11.4% from one year earlier to 23.5M kilolitres during the first half, according to data from the National Bureau of Statistics.

Outsourcing your Manufacturing to China.

2011-08-02T00:55:00.000-07:00

The main reason for outsourcing manufacturing to China are the low labour costs which allow components/products to be manufactured competatively. Many companies, world wide, manufacture goods competatively in China and other low cost areas. Below, are some of the things to consider when outsouring:

Ensure that your product can be manufactured easily and it is essential that a cost reduction exercise is carried out to investigate improvements for manufacture.
Re-assess the strategies of your Company to ensure the benefits of outsourcing and offshore manufacturing achieve the goals your company requires.
Research your prospective Outsourcing requirement and process.
Costs which need to be considered, and are normally overlooked, are the costs for Project Managements and Travel. Doing outsourcing yourself, may eventually cost your savings generated in your manufacture.
Use a recognised outsourcing company like SOURCE-IN-ASIA TODAY LIMITED to generate prospective suppliers in China to carry out your work.
Ensure, that through your Outsourcing Company, dedicated lines of communication are available, especially in English.
Give as much information relating to the product, including any previously encountered difficulties and concerns, as these need to be included in the setting up of the product, to maintain a like for like situation. REMEMBER, you cannot expect the product to be improved by outsourcing.
Using a UK outsourcing company will allow you pass all the required information to the Chinese supplier, as the company should visit the supplier to discuss the project and go through the requirements face to face, as SOURCE-IN-ASIA TODAY LIMITED would do.
Get your outsourcing company to give you as much information as possible on the supplier who will be carrying out your manufacturing. Information to obtain are items like a process audit for your product, Company Information, Accreditations for Quality Requirements.
Before placing large orders, place a sample order, obtaining as much manufacturing information as possible. This will allow you to go through the sample batch in detail and understand the quality and whether they meet your expectations of the product. This will also allow you to carry out possible changes prior to volume production.
Make sure that your outsourcing sourcing company is using suppliers which conform to the Environmental/Ethical policy for companies in China.
Transportation is also a cost which needs to be taken into account when outsourcing, as again, these costs can be large. Using an outsourcing company will ensure that the goods are transported by a reputable company, at the most economical solution, air freight or sea freight. All costs should include door to door carriage, insurance, duties and taxes.

For further information please visit SOURCE-IN-ASIA TODAY LIMITED website www.source-in-asiatoday.co.uk or contact lynnjones@source-in-asiatoday.co.uk

Chinese Trivia - 2.

2011-08-01T09:01:00.000-07:00

Ketchup originated in China as a pickled fish sauce called ke-tsiap.
Chopsticks originated in China approximately 4,000 years ago.
The Great Wall stretch for about 4,500 miles across Northern China.
China is now the worlds largest apple producer, followed by the US in second place.
Fingerprinting was used in China as early as 700AD.
30% of Chinese Adults live with their parents.
20% of the worlds polulation lives in China.

China Mobile Axes International Roaming Fees.

2011-08-01T08:53:00.000-07:00

China Molbile Ltd said it would slash International Roaming Fees in 38 countries including Australia, Singapore and Canada by up to 80% starting 2nd August, 2011. It is uncertain at present, whether any European Countries are included in this latest change. It is the fifth time since 2010, that the world's largest wireless carrier by subscribers, has cut International Roaming Fees.

Doing Business in China.

2010-02-18T08:13:00.000-08:00

FLEXIBILITY.

China has become the place to outsource to over the last decade, and a large amount of companies have already done this, but there are still risks in doing so. In the present climate, suppliers have gone out of business, and this creates large disruptions for the customer when it occurs. It is therefore important that customers remain flexible and multi-source their components or goods.

SUPPLIER NETWORKS.

It is important that customers utilise established UK companies to source and set up production with supplier networks in China, to achieve the cost savings that customers seek. By using established UK companies, relationships with the Chinese suppliers are already in place, especially in terms of honesty and integrity, and therefore a large part of the risk of "going on your own" strategy is removed.

ARE LOWEST COSTS BEST?

When sourcing in China, customers must look at whether they wish to go down the "lowest cost route" or down "a low cost route". The "lowest cost route" normally gives risk as suppliers are in the lower quality bracket, cutting corners, poor facilities, facilities which the customer would not use back in the UK and you get what you pay for. If the customer wishes to go down this route, then China may not be the offshore country he should be using. The better option is the "lowest cost route" where suppliers are of a standard which ensures that suppliers have quality accreditation's, that they follow a QMS system, operate to audited procedures, and have facilities which the customer would feel was there own company. The costs will not be the cheapest, but over time, as relationships build, there will opportunities to achieve cost downs on goods.

SUPPLIER LOCATIONS.

Part of the selection of a supplier must be the location of the facilities, as things like a proper infrastructure, allowing goods to be quickly moved from the factory to the port, Government incentives to used companies in special development location, good transport locations with major motorway facilities, ease of entering and exiting China on business trips. In addition, there certain cities which are noted for manufacturing a certain type of product, which means it will difficult to achieve competitiveness elsewhere in China.

CULTURAL DIFFERENCES.

Cultural differences are the most important changes from the west. When doing business with Chinese suppliers, you will find that discussing technical points, it will involve the full team, and discusions on a single point will take time, something the west are not used to. One of the other main points is the breaking off for lunch which will take 11/2 - 2 hours, again something the west are not prepared for. Be polite, as to be abrupt may send the wrong message. Also remember, a large amount of discussion and work is carried on during the evening meal, so also be prepared for this.

I hope that this small insight into doing business in China has been helpful, and should you require any further information, please contact Source-in-Asia Today Limited, who will be only too pleased to help or discuss any points you have.

Chinese Manufacturing continues to expand.

2010-02-11T07:27:00.000-08:00

Chinese manufacturing expanded at its fastest rate in 20 months in December, official figures show.

The latest data suggests that the Chinese economy has further consolidated its recovery from the global downturn, although travelling around Southern China, the number of factories which have closed is still large.

China's official PMI (Purchase Managers Index) stood at 56.6 in December, up from 55.2 in November. This index is the benchmark for all figures relating to manufacturing growth in China, and is the best measure for future economic activity.

GREEN FUELS AND VEHICLES, 2010 CHINA.

2010-02-09T09:22:00.000-08:00

The Innovation and Industrialisation in Alternative and Conventional Vehicles.

April 8th and 9th, 2010 - Shanghai.

Under the Global Energy Crisis, alternative vehicles are becoming more popular. China still has a large say in conventionally manufactured vehicles, but are moving quickly to the alternative powered vehicles, especially with battery powered vehicles.

The above Event is focusing on green conventional and alternative fuels within the automotive industry, looking at technical innovations in automotives, hybrid vehicles, electric vehicles, and conventional vehicles.

For more information, please visit www.greenfuels-vehicles.com

Chinese New Year

2010-02-04T05:34:00.000-08:00

By the Chinese Calendar
2010 is the Year of the Tiger,
which is also known by its formal name of Geng Yin.

The Chinese New Year Festival Starts on February 14th 2010.

Chinese New Year or Spring Festival is the most important of the traditional Chinese holidays. It is sometimes called the "Lunar New Year" by English speakers. The festival traditionally begins on the first day of the first month (Chinese: 正月; pinyin: zhēng yuè) in the Chinese calendar and ends on the 15th; this day is called Lantern Festival. Chinese New Year's Eve is known as chú xī. It literally means "Year-pass Eve".

Within China, regional customs and traditions concerning the celebration of the Chinese new year vary widely. People will pour out their money to buy presents, decoration, material, food, and clothing. It is also the tradition that every family thoroughly cleans the house to sweep away any ill-fortune in hopes to make way for good incoming luck. Windows and doors will be decorated with red colour paper-cuts and couplets with popular themes of “happiness”, “wealth”, and “longevity”. On the Eve of Chinese New Year, supper is a feast with families. Food will include such items as pigs, ducks, chicken and sweet delicacies. The family will end the night with firecrackers. Early the next morning, children will greet their parents by wishing them a healthy and happy new year, and receive money in red paper envelopes. The Chinese New Year tradition is a great way to reconcile forgetting all grudges, and sincerely wish peace and happiness for everyone.

Aluminium Production Increases in China.

2010-02-01T23:37:00.001-08:00

Primary aluminium production in China rose to 1.331 million tonnes in December, 2009, from 1.327 million tonnes in the previous month, an industry report showed on 29th January. Data from the international Aluminium Institute (IAI) showed China's primary aluminium production for 2009 at 12.964 million tonnes from a record high of 13.105 million tonnes the previous year.

China Automotive Sysyetms to Supply Chrysler North America.

2010-02-01T03:35:00.000-08:00

Wuhan-based China Automotive Systems, a power wteering components and systems supplier in China, has announced that its first Global OEM customer is the Chrysler Group LLC, which is headquartered in North America.

In November 2008, CAAS recieved its first order from Chrysler to export power steering gears to Chrysler's North America assembly facitlity. Since mid-2009, the steering gears have been exported from China to the United States and installed in the Chrysler's Jeep Wrangler models.

Chrysler conducted an initial screen and review of CAAS's research and development capacity, quality control and production capabilities as part of the supplier development process. CAAS and Chrysler next created a framework for their future joint development. The company successfully passed several product evaluations and road tests resulting in Chrysler accepting the company's power steering gears and issuiing a purchase order.

CAAS also announced that it has begun production of its electronic power steering system. This new electronic power steering product and technology represents the first such steering system developed internally within China. The Company is currently supplying this EPS system at a rate of 2,000 units per month to Suzuki Auto in China.

The comapny is in the process of opening a reasearch and development centre in Henglong in Jingzhou City.

Chinese Trivia.

2010-02-01T03:15:00.000-08:00

QUESTION
The kite, a Chinese Invention, has been praised as the forerunner of the modern airplane. In the pavilion of aircraft of the National Aeronautics and Space Museum in Washington, a plaque says, "the earliest aircraft are kites and missiles of China".

The kite is mainly, but not only, a plaything. It has contributed to science and production. The first planes were shaped after a kite.
What was the earliest kites made from:

A. Paper:
B. Carbon Fibre:
C. Wood:
D. Silk.

ANSWERS
If you say A, you are wrong, but on the right path. The first kites from the Warring States Period (475-221BC) were made from wood, as paper had not yet been invented.

The kites were called muyuan (wooden kites) and once paper had been invented, kites began to be made of this new material called zhiyuan (paper kites).

Instead of being playthings, early kites were used for military purposes. Historical records say they were large in size; some were powerful enough to carry men up in the air to observe enemy movements, and others were used to scatter propaganda leaflets over hostile forces.