A Voice Against China Sourcing

I enjoyed reading an article in Supply Management that cites the rather unpopular argument that China sourcing is on the wane. Even though I do not agree with all of the points in the piece, it's worth reading to hear a contrarian perspective. The article was based on a speech by London businessman Sir Anthony Jolliffe in which he argued: "The future of low-cost country sourcing lies in India and Brazil as China will lose its competitive edge ... I see China as a 10-year wonder because wages are going up: 7 per cent of people have an income of more than $100,000. What will happen when that goes up to 15-20 per cent? How will China address the imbalance of wealth?" According to Jolliffe, "If I were looking for somewhere to source now, I would be in Brazil, India and even Japan, which is making a comeback. India is giving China a good run for its money. Brazil has a large population and is more aligned with the West and could be the engine of South America."

Jason Busch

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