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Challenge of Identifying and Negotiating with Chinese Factories

In: Contemporary Strategic Chinese American Business Negotiations and Market Entry

Author

Listed:
  • Neale G O’Connor

    (Edith Cowan University)

  • Mike Bellamy

    (Asia Bridge Law)

Abstract

Visiting the tradeshow and supplier factories are an important part of structuring the factory direct relationship with your supplier. Often buyers skip the factory visit, trusting instead their instincts on a good find at tradeshow. However, skipping the factory visit can lead to serious problems, exposing buyers to scams. One only must visit www.supplierblacklist.com to understand the enormity of the problem. Our work on data from this website demonstrates that visiting the factory is a critical element of good governance in your exchange relationship with a supplier. In this chapter, we share the tips and tricks from tradeshow and factory visits to make your engagement with the supplier successful. We begin with the three-circle control framework that sets out the three areas in which buyers can be exposed to risk. Next, we discuss the strategies and tips for making the most of your tradeshow visit. Finally, we discuss the tips and strategies for successfully completing your factory visit.

Suggested Citation

  • Neale G O’Connor & Mike Bellamy, 2023. "Challenge of Identifying and Negotiating with Chinese Factories," Springer Books, in: Steven J. Clarke (ed.), Contemporary Strategic Chinese American Business Negotiations and Market Entry, pages 453-470, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-6986-7_14
    DOI: 10.1007/978-981-19-6986-7_14
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