Cross‑border restructuring offers a way to de‑risk supply chains, sidestep punitive tariffs, and build operational resilience without abandoning China entirely. It is not just moving factories from China to Vietnam or Indonesia. It requires a strategic overhaul of tax structures, legal entities, workforce plans, intellectual property arrangements, supplier networks, and leadership models. When done well, it shifts China’s role from a one‑dimensional manufacturing base to a high‑value node in a broader regional strategy.

Why companies are choosing restructuring

Over recent years, geopolitical tensions, especially US–China trade and export controls, have disrupted once‑stable global supply chains. Rising costs and regulatory complexity in China have meant many multinationals are reassessing their entire China footprint. Yet for most, exiting China is simply impractical: the supply‑chain ecosystem is highly specialised; infrastructure is world‑class; R&D capability remains strong; and the domestic market continues to grow.

Instead, cross‑border restructuring provides a more balanced path. Companies can reduce geopolitical exposure while retaining China’s strengths by shifting certain parts of production, typically low‑value or labour‑intensive activities, to ASEAN or South Asia, while keeping R&D, quality control or domestic sales operations in China.

What to keep in China and why

The first step is understanding which parts of the operation truly belong in China. For some businesses, China is an export hub. For others, it’s a domestic market centre, an innovation base or a quality control node. That functional mapping is essential. Labour‑intensive assembly might be moved offshore, but high‑value engineering, regulatory liaison or customer service may remain.

Downsizing China operations isn’t simple. Legal obligations under labour laws mean consultations, severance and possibly union involvement. Equipment sales or asset transfer may require local approvals, particularly in sensitive sectors. And shifting assets can trigger tax liabilities, companies must weigh exit costs against long‑term benefits carefully.

Sensitive relationships can suffer if the process isn’t handled transparently. Government incentives or supplier ties may be put at risk if local stakeholders feel blindsided. Clear communication and compliance are crucial to preserving goodwill.

Choosing a new host location with purpose

The decision of where to locate new operations goes far beyond low labour cost. Strategic choice today must consider trade agreements, regulatory alignment, infrastructure, talent pools, and industry‑specific incentives.

For example, moving final assembly to Vietnam or Malaysia can help firms meet rules‑of‑origin requirements for free trade agreements, qualifying goods for tariff‑free export to the EU or US. But achieving this advantage depends on genuine manufacturing value‑add, not merely repackaging.

Market access also matters: Indonesia may suit consumer‑goods businesses seeking scale, while Singapore could be preferable for regulated sectors needing compliance clarity. Infrastructure readiness varies, from ports to digital readiness, and needs to match sectoral demands.

Many emerging markets now offer sector‑targeted incentives, India’s PLI (Production‑Linked Incentive) for electronics, or Thailand’s R&D grants for biotech. It’s vital to assess these offers relative to specific company needs.

Structuring the new entity and planning the timeline

How new operations are structured affects control, regulatory exposure, and cost. Options include a wholly foreign‑owned enterprise (WFOE), joint venture, contract manufacturing agreement or strategic alliance – all with different implications for tariff control, governance and local compliance.

To qualify for tariff benefits under agreements like RCEP or CPTPP, companies need to ensure local transformation thresholds are met, not just shipment points moved. That shapes decisions around what functions to relocate and what suppliers to localise.

A phased rollout is often wiser than a big‑bang relocation. Pilot operations allow evaluation of delivery performance, compliance fit, quality standards and cost savings before full-scale implementation. Project timelines must reflect construction, licensing, recruitment, training and partner onboarding timeframes.

Tax, transfer pricing and fiscal design

Restructuring often reshapes where value is created, and that impacts tax. Multinationals must ensure operations reflect substance: functions, risks and assets must align with where profits are allocated to avoid transfer pricing disputes across jurisdictions.

China is increasingly vigilant about outbound restructuring, especially where high‑value functions or IP are shifted. Early engagement with local tax bureaus and careful planning of asset transfers, or equity restructuring, is key to managing capital gains exposure and compliance risk.

Transfer pricing models must be updated to reflect new functional roles. Suppose China becomes a limited‑risk distributor rather than the main manufacturer. Then profit allocation and intercompany pricing must align with legal reality, not just historic structure.

People, leadership and morale

The human side of restructuring is often underestimated. Talent is hard to replace, and morale can suffer if staff in China feel abandoned or insecure. Leadership continuity, internal communications, retention plans, or even relocation programmes, must be carefully managed.

Mobilising key personnel from China to the new site raises immigration, tax and cultural adaptation issues. Host countries may limit work permits or raise residency hurdles. Companies need clear plans and legal advice on visas, taxation and support for expat staff.

At the same time, building a skilled local workforce requires labour‑market mapping, training initiatives, localisation planning and collaboration with vocational schools or employment agencies.

Protecting intellectual property and data

Moving operations can expose IP and data to new risks. Protection regimes vary by jurisdiction, patent law enforcement, judicial capacity and digital data governance differ greatly. IP risk assessments should be specific to each location and business model.

Companies must decide whether to hold IP in China, in a regional headquarters, or a neutral jurisdiction, understanding the impacts on tax, licensing arrangements and exit liabilities. Licensing terms between entities need to be clear, reflecting royalty terms, legal risks, and control frameworks.

If operations shift to territories with weaker IP regimes, greater vigilance, not just contracts, is required. Partner vetting, in‑house retention of core know‑how and regional IP strategies help limit leakage.

Managing supplier and customer relationships through transition

Supply change disruption is a real danger. Long‑standing supplier ties and delivery expectations can be upended if operations move too quickly. Identifying sole‑source vulnerabilities or critical clients is essential before the transition begins.

Maintaining customer service levels during the shift requires interim logistics planning, buffer stock, possible dual sourcing and renegotiation of contracts to reflect new transit routes or import/export jurisdictions.

Proactive, transparent communication builds trust. Customers and suppliers benefit from clear timelines and commitment to quality. In some cases, joint planning with anchor suppliers or logistics partners can smooth the transition; others may mean onboarding new local sourcing partners in the host country.

When is restructuring the right move?

Cross‑border restructuring may sound complex, but it offers more than risk mitigation. For many companies, it is a strategic move designed to future‑proof operations in a world where agility and resilience matter as much as efficiency.

Businesses must assess their own vulnerabilities: Are specific tariff risks or export controls exposing particular product lines? Is there over‑reliance on a single site or region? Which functions are portable? Which need to stay in China? Will a partnership model or contract manufacturing serve just as well as full investment offshore?

Cost savings alone are rarely enough. Firms must weigh infrastructure limitations, legal unknowns, language or cultural barriers, and balance must favour long‑term operational stability over sheer low cost.

Finally, internal alignment is critical. Leadership must treat restructuring as organisational change, not just logistics: reshaping workflows, managing talent, and preserving morale during the shift, all while sustaining governance, communication and the integrity of service delivery.

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One of the most pressing issues for UK companies is the variability in quality standards across China’s diverse manufacturing landscape. With thousands of factories ranging from cutting-edge facilities to smaller, less experienced operations, the risk of receiving subpar products is real. Inconsistencies can occur, particularly in smaller or less experienced operations, often due to the use of cheaper materials or inadequate workmanship. This can spell trouble for UK firms, whose customers expect products that meet rigorous British and European standards. To counter this, thorough supplier vetting is essential. Regular audits, supported by third-party inspection firms, ensure suppliers maintain consistent quality, fostering long-term partnerships built on trust.

Communication barriers further complicate quality control. Language differences and cultural nuances can lead to misaligned expectations, resulting in products that miss the mark. Miscommunication can lead to incorrect specifications, production errors, and ultimately, defective products. This means investing in clear, detailed communication channels. Hiring bilingual project managers or working through intermediaries that can offer translation and cultural advisory services can help bridge the gap. Detailed contracts and quality control checklists also help align expectations, ensuring that specifications are met precisely. By establishing robust communication from the outset, UK firms can reduce the risk of costly errors and maintain product integrity.

Scaling production in China often amplifies quality issues, especially in high-volume runs where small defects can snowball into significant problems. Problems that might be negligible in small batches can become significant when producing large quantities. This is particularly critical for UK companies importing goods into the EU, where regulations like the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) demand strict compliance. Adopting advanced technologies, such as AI-driven inspection systems, can help. Advances in artificial intelligence, machine learning, and automation are enabling manufacturers to improve the accuracy and efficiency of quality control processes. UK firms can encourage Chinese suppliers to integrate these technologies, drawing inspiration from global players like Siemens, which have successfully implemented smart manufacturing solutions in China. Consultancies can also guide businesses in embedding these tools into their supply chains, reducing rework and ensuring consistency at scale.

Regulatory compliance adds another layer of complexity. China’s “Made in China 2025” initiative pushes for higher quality and innovation, but aligning with UK and EU standards, such as those governing product safety and traceability, remains challenging. The need for UK manufacturers importing to the EU to appoint a ‘responsible person’ to ensure compliance is a sensible requirement but adds both cost and operational burden. This is especially relevant for goods entering Northern Ireland, which adheres to EU single market rules. To navigate this, UK businesses can turn to legal experts who specialise in international compliance or leverage CBBC’s regulatory advisory services to stay abreast of China’s evolving policies. Clear labelling and documentation, aligned with both Chinese and international standards, help ensure products meet market requirements and avoid costly rejections.

Labour shortages in China’s manufacturing sector also pose a threat to quality. In 2023 a report claimed that 67% of companies struggle to find skilled workers, which can lead to production errors. For UK firms, this underscores the need to verify that suppliers have access to trained staff. Collaborating with manufacturers to implement training programmes, can address skill gaps. CBBC’s network can connect UK businesses with industry clusters in China, where specialised sectors benefit from concentrated expertise, ensuring a more skilled workforce and higher-quality output.

Rising costs and supply chain disruptions further complicate the picture. With Shanghai’s minimum wage at 2,690 RMB per month as of January 2025 and manufacturing wages outpacing those in countries like Vietnam, some suppliers may cut corners to manage costs, risking quality. Geopolitical tensions, such as US-China trade tariffs, also create bottlenecks that disrupt production schedules. AI-driven predictive analytics can enhance supply chain visibility, helping firms anticipate and address disruptions before they impact quality.

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But over the last few years, the Covid pandemic and a series of serious geopolitical crises have increased the challenges of supply chain management, causing logistical disruption, rising costs and labour market concerns. This can and has had a financial and – in some cases – existential impact on companies.

Learn more about managing China supply chains at the UK-China Business Forum 2024 on 20 March. Click here to register

The pandemic reiterated the centrality of China to global supply chains. As parts of China went into and out of lockdown, many companies considered sourcing from suppliers outside of China. But this merely mitigated rather than eliminated the risk – core components of so many products still come from China.

While the specific uncertainties of the pandemic years are behind us, a number of ongoing challenges remain, both China-specific and global. Most recently, the attacks in the Red Sea have shown that global shipping routes are very vulnerable to disruption. Moreover, companies are increasingly coming under pressure to make their supply chains more sustainable as consumers become more concerned with the carbon emissions generated by the sourcing and transportation of the products they consume.

As a result, some companies have started to explore strategies like ‘reshoring’ (bringing manufacturing and services back to the company’s home country) or ‘friendshoring’ (relocating production and supply chains to allied countries that are considered politically and economically ‘safe’). A 2023 survey by the Institute of Directors found that around 20% of UK importers have already made alterations to their supply chain, with 15% are considering making alterations.

Nevertheless, China-linked supply chains still have the advantage both in terms of cost and in terms of quality, with the Chinese government investing heavily in technological innovation and human capital. And given that China was the UK’s 5^th largest trading partner in the four quarters to the end of Q3 2023, supply chains between the UK and China are – and will remain – a priority for most companies.

That being said, companies that rely on distant sourcing strategies may need to consider establishing an on-the-ground presence that allows them to respond more quickly to ripples in the supply chain. And like many aspects of dealing with China, communication is key. It is important to build relationships across all the stakeholders, and where possible and applicable, to open up communications across all those parties – think of multiple point supply ‘networks’ rather than point-to-point supply ‘chains’.

So, how can you deal with vulnerabilities in your China supply chain? As part of the UK-China Business Forum 2024, CBBC will be hosting a panel on supply chain management that will bring together experts and companies on the ground to explore options and strategies. The panel includes Marco Forgione, Director General of The Institute of Export and International Trade; Jane Liang, Chief Procurement Officer at Diageo; James Grayland, International Director at Heighten; and Lise Bertelsen, Executive Director, Public Affairs at the China-Britain Business Council (moderator). Click here to register.

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At the 75th General Assembly of the UN, China announced that it was committing to reaching peak carbon emissions by 2030 and carbon neutrality by 2060. President Xi Jinping called for all countries to commit to innovative green development, stating that exploiting the environment with little concern for conservation was no longer an option.

Beijing is still thought of outside of China as one of the most polluted places on earth, but PM2.5 emissions – the main issue for the city – are a third of what they were a decade ago, with the falling trend continuing. The skies have turned blue, and we can, in part, attribute this improvement to China’s huge investment in green energy, a field in which the country has rapidly become a world leader. This has resulted in it becoming effectively essential to global green energy supply chains.

PV energy supply chains

No sector highlights China’s centrality to global renewable energy more than the solar energy industry. China currently supplies around 90% of the world’s photovoltaic modules, giving the country tremendous leverage over future energy markets globally.

If you need tangible evidence of China’s investment in renewable energy, look no further than Golmud Solar Park in Qinghai province. With a capacity of 2.8 gigawatts, it is the largest solar power plant in the world. It is, however, not the only mega solar power plant in the country. The Tenger Desert Solar Park in Ningxia province has a capacity of 1.5 gigawatts and spreads across 43 square kilometres.

China is the world’s largest exporter of renewable energy infrastructure, responsible for 90% of the global photovoltaic cell supply and 50% of wind turbines. This means that China is absolutely essential to the global renewable energy market. With increasing pressure from international organisations such as the IPCC to take the climate crisis more seriously in at least the short to mid-term, China is effectively the green energy transition factory until other countries grow their renewable energy manufacturing sectors.

The pace at which China has become the key player in global PV supply is as startling as its current scale. A report from the International Energy Agency (IEA) shows how, between 2010 and 2021, China’s share of global demand skyrocketed from 3.5% to 36%. Meanwhile, former spearhead Europe toppled from representing 80.4% of global demand to a mere 16.8%. Over the same period, the share of every core element in the supply chain has become concentrated in China.

Source – IEA

This pole position was achieved through a number of factors, the first of which is huge investment. China was responsible for nearly half of global clean energy investment in 2022, investing US$ 546 billion. The EU, as the second largest spender on clean energy, invested US$ 180 billion, less than a third of China’s total.

Then comes economies of scale. China has fulfilled a role as ‘the world’s factory’ for decades now and has formidable manufacturing expertise. It also has the space to build infrastructure at a scale unfeasible for most countries, as proven by its PV mega projects.

China’s geographical size and characteristics mean it has an abundance of the raw materials essential to PV components. The charts above from the IEA show, for example, how China has increased its production of polysilicon to over three quarters of the global supply. Data from Statista show that 98% of Europe’s rare earth imports (which it does not produce itself) originated from China in 2021.

China’s green transition and the UK

China may be ahead in zero-carbon technologies, but for the UK, there is an opportunity for collaboration. Thankfully, the potential and will are high, with each country offering its own expertise and sharing a common goal in leading the pursuit of carbon neutrality.

The urgency of the green transition adds to competition in both an economic and political sense, and China sees opportunity in this. Bob Ward, policy and communications director at the LSE Grantham Research Institute, told FOCUS: “China recognises the green transition as a race. The growing market for zero-carbon technologies and materials is a massive new economic opportunity. China has recognised this and is moving ahead more quickly than many of its competitors, including Europe and the US.”

On a global level, competition with China could play a key role in driving down the cost of the transition. “Competition can help to bring costs down further. Some people have argued that if China drops the costs so dramatically, it effectively puts everyone else out of business,” Ward added. “We have seen in the past companies seeking to develop monopolies – they put their competitors out of business and then control the costs and can put up prices. The experience with Solar PV is that China didn’t do that. They are simply aiming to beat everyone and become the world’s supplier.”

Although progress may have slowed, partnerships between the UK and China in green energy go back a decade. In 2013, the Conservative/Liberal Democrat coalition government signed an MoU for cooperation in offshore wind projects. Offshore wind is very much a success story of China-UK energy cooperation. The UK is considered a world leader in offshore energy, but behind the scenes is Chinese investment and energy storage projects. The largest lithium battery storage plant in Europe was set up in the UK in 2021 using technology from the Chinese firm Sungrow.

One of Sungrow’s most recent UK projects sees the transformation of a decommissioned coal energy plant into a green battery storage unit in Ferrybridge, West Yorkshire. It is expected to be able to supply the national grid with 300MWh of capacity upon completion in 2024. The project is thus more than a contribution to the UK grid – it has a symbolic value in tangibly transforming a site of former fossil fuel energy into a green one.

The UK is also a world leader in green finance, with London ranking as the top green financial centre globally in the 2023 Green Finance Index. This offers clear synergy with China’s capital-intensive manufacturing expertise and a potentially global reach of positive impact.

In a recent report, Baillie Gifford, a CBBC member company, long-term investor in China and ESG expert, states that despite the rapid growth in ESG investing and infrastructure to support it, there are still significant knowledge gaps to making sound ESG decisions in the China market. Among the points of their overall ESG due diligence checklist are specific sustainability questions: Does a company disclose carbon emissions and set a carbon reduction target? Is the company compliant with the UN Global Compact?

Baillie Gifford’s China Growth Trust 2023 report highlights the difference that targeted ESG finance can have on decarbonising investment. On a measure of weighted average carbon intensity comparing their China portfolio to an average index, the portfolio had an 85% lower carbon intensity. The portfolio includes multiple firms engaged in renewable energy supply chains, from component suppliers to EV battery producers.

The climate crisis is a global issue, demanding global cooperation. With green energy supply chains very much focused in China, the UK will need to collaborate if it is to meet its own green targets. As the London Environment strategy targets a carbon-neutral capital by 2050, much inspiration can be drawn from the newly blue skies of Beijing.

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Technological advancements, international collaboration and alignments of objectives have helped improve the quality and speed of China’s supply chains in recent years, according to Alex Makino-Farrell, CBBC‘s China market business adviser. But the pandemic has exposed certain fragilities and illuminated a need to improve resilience in the future. “During the Covid-19 pandemic, supply chains, particularly those to which China is central, have experienced disruption at both ends,” he says. “The impact was first felt at supply level as China went into lockdown before demand took a hit as other countries began to feel the effects of the pandemic.”

The initial impact of the lockdown on supply chain activity in China was limited, as it coincided with the low-season period surrounding Chinese New Year, explains Emily Zhu, head of logistics development and sourcing at AkzoNobel China. “The three greatest immediate challenges facing supply chains at present are raw materials shortages, limitations to manufacturing capacity, and a shortfall in available transportation resources,” she says. “Many of the challenges in this respect are linked to restrictions on movement and quarantining requirements arising from the pandemic. For example, shipments being blocked within Chinese ports after arriving from overseas, and labour shortages as migrant workers choose to remain in their hometowns and drivers are required to quarantine when travelling between Chinese cities.”

The three greatest challenges facing supply chains are raw materials shortages, limitations to manufacturing capacity, and a shortfall in available transportation

Outside of China, Peter Riches, managing director, SinoScan UK says that the huge increase in demand for air freight during the pandemic necessitated transporting as many goods as possible by sea – a challenge which SinoScan tackled by working closely with its customers to understand their specific needs and tailor operations accordingly. For Andrew Nyadzo, head of Procurement, Volution Group PLC, keeping lines of communication open with Chinese partners and suppliers was key to combatting challenges of supply and demand during this time. “Having an on-the-ground presence and the continuity this has created has even made new product launches possible, despite uncertain market conditions,” he says.

Having an on-the-ground presence and the continuity this has created has even made new product launches possible, despite uncertain market conditions.

A key issue that has been revealed due to the pandemic is the centrality of China within global supply chains. Nyadzo explains that although his company considered sourcing from suppliers outside of China as the pandemic hit, this would merely have mitigated rather than eliminated risk, as core components still tended to come from China. “While it used to be assumed that if the United States ‘catches a cold’ the whole world is affected, the same can now be said of China,” he says. “And that in order to address the potential issues associated with this phenomenon, wider discussions need to be had by the industry as a whole and at all levels of the value chain.”

A number of ongoing challenges currently face supply chains, including geopolitical factors such as the US-China trade war that makes it difficult to ensure security of supply; and the high unemployment rate in China as a result of the pandemic, which has resulted in a reduction in exports. However, recent investment in Chinese SMEs – particularly in new machinery and education and training – create opportunities, and technological advances such as supply chain digitalisation were further acknowledged as important developments to be embraced.

Chinese government-backed initiatives also continue to present opportunities within global supply chains. Not only was a commitment made by the Chinese government during the Two Sessions 2020 to continue its efforts to stabilise supply chains, but the panellists all acknowledged the opportunities created by China’s Special Economic Zones (SEZs). “Notwithstanding the potential for some parts of supply chains to become more localised in the short term, the continuation of large-scale international trade makes it sensible for small- and medium-sized UK companies to take advantage of the local resources and tax benefits offered by SEZs in the medium term,” says Riches.

Chinese government-backed initiatives such as China’s Special Economic Zones continue to present opportunities within global supply chains

Sustainability was also viewed as an increasingly important factor in shaping the future of the supply chain. “The carbon footprint involved in shipping parts from China to the UK cannot be avoided simply by manufacturing elsewhere, given that components still need to be shipped from China earlier in the chain,” says Nyadzo. “This issue necessitates industry-wide discussions, particularly within the electronics industry.”

Supply chains are already showing signs of bouncing back from the effects of the pandemic. AkzoNobel’s cross-functional approach has allowed the company to tackle challenges at all levels of the supply chain, with dedicated teams reviewing developments on a daily basis. This holistic approach has allowed the company to achieve 80 percent recovery of business. Similarly, a number of SinoScan’s suppliers have reported recovering capacity of between 80 and 90 percent of their pre-Covid levels. However, with a reported average of around 50 percent reduction in sales during the first quarter of 2020, SinoScan’s suppliers are keen to get going and progress is already being made in this regard.

The developments of the last six months have illuminated the potential for longer-term improvements in the design and operation of global supply chains. “The pandemic certainly has exposed weaknesses in the global supply chain,” says Nyadzo. However according to Riches the changes required are less comparable to “rewiring a house” than to simply “checking the security of the wiring.”

“The pandemic has enhanced end-to-end cooperation, cross-functional decision making, and collaborative risk management,” says Zhu. It also has amplified the value of procurement, resulting in an increased voice being given to key players in the supply chain that had previously been overlooked.

Additional reporting by Hannah Williams

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Supply chains have been severely disrupted by the Covid-19 virus, turning already complex logistics and payment structures into something of a minefield. Adnaan Mukta explains how

The Covid-19 crisis has severely disrupted the supply chains of many UK businesses that depend on imports from China. The Bank of England reports that production stoppages in China have hit output in sectors ranging from car manufacturing to aerospace.

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Building the Belt and Road Initiative

Throughout the world, mass globalisation has increased demand for logistical speed, paving the way for China’s trillion dollar Belt and Road Initiative (BRI), and the exciting new era that will herald.

Even before the BRI, China was investing heavily into its infrastructure though. Between 2001 and 2004, annual investment in rural roads grew by a massive 51 percent and with economic growth accelerating, logistics development remains a top priority for China’s government.

However, logistics costs are approximately twice as high in China as in Japan, Europe, and North America, driven in no small part by the country’s size and high road toll fees.

To complicate matters, there are currently no unified management regulations applicable to all modes of transportation in China. Unlike the US, Canada or other developed countries, China also has no specialised agencies established for coordinating and managing the transportation safety of dangerous goods under various modes of transportation, with each authority managing these processes separately according to their responsibilities.

The Chinese approach to business can be a significant challenge for companies unfamiliar with the territory, not only because it can be more bureaucratic in some areas, but also because they place great emphasis on relationships

Key to navigating such challenges is local knowledge of the supply chain at the planning stage. For example, factoring country road tolls into a budget plan ensures that transportation costs are accounted for, while third-party expertise is valuable in navigating case-specific challenges such as the transportation and storage of dangerous goods.

China’s economic growth and infrastructure development means there are ample opportunities for Western businesses to establish themselves in the Chinese market

China’s economic growth and infrastructure development means there are ample opportunities for Western businesses to establish themselves in the Chinese market, but businesses seeking to take the leap must also be prepared for the market’s unique challenges.

The Chinese approach to business can be a significant challenge for companies unfamiliar with the territory, not only because it can be more bureaucratic in some areas, but also because they place great emphasis on relationships and the need to engage with people upfront.

The Chinese market is heavily regulated, with different trading standards in different places, creating obstacles for international businesses more accustomed to operating under standardised accreditations such as ISO. Failure to comply with regional regulations can directly impact lead times and incur unanticipated costs, emphasising the heightened requirement for risk management when planning and implementing supply chains in China.

Setting up a supply chain in China is a complicated process but to be successful in China’s hyper-competitive market, the start up process is key. Where to store inventory? Should free trade or non-bonded zones be prioritised? How to communicate effectively and respectfully across regions with differing customs and regulations?

China’s shifting economy has created a whole range of opportunities for international business. Unipart has learnt that global companies making and selling products in China can gain huge advantages from reassessing their approach and understanding the importance of supply chain excellence; how it can introduce cost savings, create new revenue, and directly affect brand equity. Successful companies benefit from trusted and experienced partners who understand the challenges of operating in China.

For more information and case studies on Unipart’s approach to logistics, please visit their website.

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