The China price is rising. As of July 1, China has slashed value-added tax (VAT) rebates on more than 2,800 products, a move which is likely to result in an increase in the prices Chinese suppliers charge their customers in the west.
Much of China's recent export-driven success has been based on rock-bottom prices so it will be interesting to see how Chinese suppliers react to the changes -- and whether, as many hope, it will lead to a more sophisticated sourcing strategies based on co-development and cooperation rather than simply the quest for the lowest price.
MFG.com, an online marketplace for the manufacturing industry, has organised a webinar this Friday (13th) to discuss how the VAT rebate changes will affect Chinese export prices and look at ways manufacturers in the west can proactively address coming price increases from China.
The webinar also plans to touch on the topic of quality and safety of Made in China goods, which is much in the news at the moment -- see this EngagingChina story, for example.
To sign up for the webinar, which takes place at 11.00am EDT on July 13, go here.
This post in Spendmatters.com covers the tax changes and links to a couple of reports by accountancy firms.
