All posts by David Chitayat CEO

Trump’s trade war with China is getting hot.

The U.S. and China trade war escalation continues with new tariffs of 10% on $200 billion of Chinese imports starting yesterday.

Let’s rewind back to March. President Trump tweeted that “trade wars are good, and easy to win”. Trump’s invite to this trade war was about unfair Chinese trade practices, including American companies being forced to surrender their trade secrets to obtain access to the Chinese market and cybertheft of U.S. technology. Many industry groups and both political parties would agree that China is at least partially guilty of such violations, but this unfolds a greater economic impact. Continue reading Trump’s trade war with China is getting hot.

China sets Tariffs on $60 Billion in U.S. Goods

The trade escalation continues as China set tariffs on $60 billion in U.S. goods after President Trump announced tariffs on $200 billion in Chinese goods. This escalation goes beyond the back and forth between the two countries, but they need to sit down and negotiate an outcome that benefits both parties. The credit-ratings agency, Moody’s, expressed that the tariffs will hurt the global economy “by distorting prices and creating inefficiencies globally.” Uncertainty still remains among many companies as they rely on global supply chains for their businesses.

Written by: Anthony Kuhn and Avie Schneider

Read Full Article Here

Meet David Chitayat, Group CEO of Genimex.

David has been in the contract manufacturing business for the last 15 years. This great video with our partner, Tracy Hazzard, highlights how we are turn-key with supply chain management and product development. Great overview of who we are and what we do!

Types of “Manufacturers” in China

When dealing with overseas manufacturing, you will encounter the following players: trading companies/importers, buying agents, sourcing agents, representatives, wholesalers and factories.

Let us dive into the different types of suppliers and what differentiates them:

1. Trading Companies/Importers

There are two types of trading companies: the low value-added versus the high value-added trading companies. They typically make money by adding a margin to the cost of the actual production costs, and usually deal with a wider array of product categories. Trading companies have local China offices with a team of project managers that can be helpful depending on the complexity of your product. In addition, they may have great relationships with factories and help with communication in Chinese.
Continue reading Types of “Manufacturers” in China

Manufacturing Consumer Goods in India vs. China

When it comes to choosing the best overseas manufacturer in Asia, two of the most common places for manufacturing are India and China. Both countries have very dynamic manufacturing capabilities and unique economic landscapes with proven skills, strengths and weaknesses that make both countries viable choices. However, it is imperative to weigh your choices carefully by considering specific external factors that will have an impact on your supply chain.

First, let’s review the economic landscape in India and China followed by five key factors that influence manufacturing in these two countries. Continue reading Manufacturing Consumer Goods in India vs. China

China & US Trade War – The Tariff Timeline (2018)

January 2018

President Trump approved a 30% tariff on solar panels and a 20% tariff on washing machines.

Mid-February

The United States Commerce Department had announced several ideas to fight China’s undesired trade practices, including a 24% tariff on all steel imports and 7.7 percent on aluminum. Continue reading China & US Trade War – The Tariff Timeline (2018)

UPDATE: March 22nd, 2018: President Trump Proposes $50 Billion in Tariffs on China

Top 10 U.S. trading partners for goods ($billions), year-to-date 2017

With the United States pulling back into an isolationist and protectionist stance and China extending its reach as a new global economic leader, who will come out ahead on the balance sheet as these two giant trading partners adjust their positions?

“The eyes of the world are turning to the East. A historic opportunity has opened up a vast strategic space for us to gain superiority. The drawbacks of capitalism have provided China with its chance to ride to the world’s rescue. China offers a completely new option for solving the common problems of humankind. This new option is called, The China Solution.” {Front page editorial Jan. 15 People’s Daily}

Continue reading UPDATE: March 22nd, 2018: President Trump Proposes $50 Billion in Tariffs on China

“Trade wars are good” according to Trump

On March 1st, Trump declared the U.S. would levy penalties of 25% on steel and 10% on aluminum imports. The details aren’t clear yet and it has yet to be explained whether the tariffs will apply to raw materials or finished goods. What is clear is that:

  • Imports make up about one-third of steel consumed by U.S. auto, aircraft, appliance manufacturers and other industries.
  • Containers & packaging make up about 18 percent of aluminum consumption in the U.S.
  • Imported aluminum is 90 percent of all aluminum.
  • Canada is the largest supplier of both to the U.S., responsible for more than half the aluminum and about 17 percent of steel.

Continue reading “Trade wars are good” according to Trump

This Holiday Kills Launches; Use These Expert Tips If You Want to Survive

Chinese New Year is now over and factories in China are starting to resume business this week. After our blog post from January on the Chinese New Year topic, Tracy Leigh Hazard, industrial designer, columnist for Inc.com and our dear friend, decided to chat with the Genimex team on the impact on product launches during this time of the year where she has summarized her thoughts as well as David Chitayat’s in this fun article entitled “This Holiday Kills Launches; Use These Expert Tips If You Want to Survive” which explains “everything you need to know about how Chinese New Year affects business and product launch timing, well after the holiday; and the crucial do’s and don’ts to avoid spiraling. Continue reading This Holiday Kills Launches; Use These Expert Tips If You Want to Survive