After over 30 years of devel- opment, China becomes famous as the world manufacturing base. The once glorious title of “world workshop” has passed from Britain during the First Industrial Revolution to current China. Made-in-China products can be found in any overseas market; meanwhile, many foreign giants set their foot and root in China. It is reported that more than 450 companies in world top 500 companies had invested in China. Even in some medium and small cities or towns here, you can find some famous shining logos from U.S. or/and Europe along the dusty street.
　　China’s manufacturing level has developed into quite a high level. Many precise machinery parts, such as CNC machine center, aero plane parts, even Swiss watch parts, are manufactured in China. However, the quality is not stable enough that you should pay high attention on the quality control. To win an order, Chinese companies can accept any term, including mission impossible. Even they cannot meet the requirements or standards, the Chinese companies may still orally promise they can do before and after the contract signing. How to select a competent partner who won’t talk around the bushes or horse?
　　First of all, build trust. To audit the factory site and quality control capacity is essential to ensure the quality of the final outcome. I once accompanied a foreign boss to select a machinery company in China. While visiting a Chinese company, we asked if they had one more machinery workshop, and they said yes. The foreign boss was interested to pay a visit to the workshop, but the owner explained that the workshop was too shabby to welcome any guest. However we still insisted to go, and then they led us to the site. It was a simple one, but it was there. “At least, he is telling the truth,” my foreign boss said. Honesty is viewed as number one quality when doing business. Site visit is important to build up a mutual trust and reliable partnership. Seeing is believing. Trust what you see on your own eyes rather than what you hear from others.
　　Also, whether the Chinese company has high sense of EHS (Environment, Health, Safety) should also be kipt in mind when selecting a local partner. Some companies do pay high attention on environment protection, and even some cities in China such as Beijing and Shanghai have moved all the high pollution industries out of the city. Many medium and small sized cities have also learned to conduct manufacturing while being environmental friendly. So don’t forget to count the cost on EHS protection when investing in China.
　　Currently many foreign companies purchase various chemical products and rude materials from China, which would cause pollution to the environment. Some metal surface treatment products for special quench, such as carburization, saltbathnitriding, Tufftride, QPQ (Quench-Polish-Quench) treatment will use some materials (such as zirconia) threatening natural environment and human health as well. Those chemicals require high standards of EHS protection solutions to ensure they won’t cause damage to environment and human beings, no matter it is the waste water, waste hydraulic oil discharge, or waste gas they produced.
　　Companies should protect the health of their staff working everyday under such poor condition: full of dust, noise, chemical media, radio, high temperature, etc. Companies that attach greatimportance to EHS will be responsible and sincere partner to work with.
　　Moreover, the supply chain matters. Ideal supply chain shares technology, management system, EHS solutions, and quality control system etc. from the upstream to the downstream. Many big foreign companies such as Catpelliar, Atlas Copco, Saint Gobain, Lafarge, SKF, ABB, Danieli, to name a few, do have well developed supplier systems. They develop raw material, technology, and equipment together with their Chinese suppliers, achieving win-win results. Some companies even share the lean production system and ERP (Enterprise Resource Planning) system with their suppliers to build an upgraded supply chain system. Working more closely with your trusted Chinese partner will have more investment returns in the future.
　　Finally, choose someone who understands both Chinese culture and international business rules and regulations well. Mutual understanding will solve many future problems and disputes easily, saving time and enhancing efficiency.
　　(Author: A senior from a European company in Beijing)