When COVID-19 emerged in China, immediate aftershocks were felt around the world as business scrambled to ensure their partnerships in China were still maintained and intact. China has long been a go-to for companies in need of manufacturing for a variety of reasons, in particular because of the low costs associated with such. Still, Daluca International says that companies must be even more careful as they navigate such arrangements in 2020 and 2021.
Daluca International launched in 2009 and continues to help clients around the world who are doing business in China. While China is a highly sought after manufacturing and business hub, company leaders often struggle to navigate the market due to challenges ranging from communication barriers to a lack of awareness of the various legal considerations in China. Daluca International is based in Guangzhou, China, and features a team of professionals who are adept in all areas of business in China, from speaking the language and understanding the culture to creating successful business contracts.
Now, post-COVID business arrangements must be approached with a higher level of caution than before.
According to Mr. Camilo Henao, CEO at Daluca International, “With local demand and consumption hitting record negative numbers in western markets, many importers are desperately trying to squeeze their cost by looking into new Chinese factories with lower prices. Post COVID-19 requires importers to be twice as careful.”
Many companies who’ve relied on domestic manufacturing are now looking into China for its low cost solutions, but business leaders need to be aware that things have changed. Now, business leaders must be more careful than ever.
“Buyers need to bear in mind Chinese suppliers may also be in trouble and affected due to COVID-19, so conducting a formal verification before starting any business is a MUST nowadays to avoid any further pitfalls,” said Henao.
Business leaders are encouraged to practice their due diligence by conducting legal verification and background checks with any prospective partner. In addition, conducting an on-site visit can help business leaders build trust and understanding with any prospective business partner. Simply relying on B2B directory listings as a measure of reputation is no longer enough. Since the business ecosystem has been disrupted and shaken by COVID-19, doing business in China is changing and requires a higher level of precaution.
The team at Daluca International can offer assistance for businesses looking to navigate Chinese manufacturing markets and more. Further details can be found at https://www.dlc.com.co/global.
About Daluca International HK Limited
Since 2009, Daluca International HK Limited has helped hundreds of clients around the world navigate through launching and maintaining business operations in China.