Anyone disaster planning for Chinese Sanctions?
Discussion
It’s the end of the world as we know it (maybe)
First shot at Taiwan and the sanctions hit, you may just need a small cog for your products imported from China but you won’t be able to get it.
Time to think it through now, I’m working with a company that’s 100% imported from China everything they sell !!
First shot at Taiwan and the sanctions hit, you may just need a small cog for your products imported from China but you won’t be able to get it.
Time to think it through now, I’m working with a company that’s 100% imported from China everything they sell !!
vaud said:
Terminator X said:
Short term pain long term gain? We need to start building stuff on home turf imho and become more self sufficient.
TX.
Need to diversify. India, Vietnam, etc are eager to invest and build supply chain capacity.TX.
DSLiverpool said:
It’s the end of the world as we know it (maybe)
First shot at Taiwan and the sanctions hit, you may just need a small cog for your products imported from China but you won’t be able to get it.
Time to think it through now, I’m working with a company that’s 100% imported from China everything they sell !!
Though perversely if the UK govt imposes sanctions on China it will knacker its own economy and people as most of our stuff comes from there.First shot at Taiwan and the sanctions hit, you may just need a small cog for your products imported from China but you won’t be able to get it.
Time to think it through now, I’m working with a company that’s 100% imported from China everything they sell !!
The overall message is the same as for Ukraine - don't get too dependent on other countries to make your own country work. But we get lazy.
Businesses should be looking for other places to be doing business actively now and should have been for some years past.
China is a despot, genocidal regime and pumping money into them is not going to end well.
I get the problem of alternatives, but the sooner that is addressed the easier it will be.
China is a despot, genocidal regime and pumping money into them is not going to end well.
I get the problem of alternatives, but the sooner that is addressed the easier it will be.
Terminator X said:
Short term pain long term gain? We need to start building stuff on home turf imho and become more self sufficient.
TX.
Not always feasible though. The product I source out there is mostly cast. We've got zero chance of getting permission to build a foundry in the UK.TX.
Company I am consulting with at the moment previously relied heavily on a Chinese supply chain. We have already relocated electronics manufacturing and steel supplies (both sheet and manufactured product) outside China / Taiwan. We have not yet been able to relocate electronic component supply outside of China and we're trying to recover the remaining tooling to outside the region which, as expected, is proving to be tortuous.
We work closely with a large company in the US who continue to source largely via 'Taiwan' (i.e. maybe China via Taiwan to avoid the Trump tax...) We pitched for additional demand from them on the basis of disruption in the region and the relative robustness of our supply chain - their view was that if China/Taiwan became a huge issue it would be catastrophic for their business anyway.
For our products, China has not been competitive for some time with rising employment costs, taxes and increasing 'complexity' in dealing in the region - other FE countries have really stolen a march on pricing and quality, even pre Covid; that said there's still many areas the Chinese suppliers dominate.
We have an additional challenge in that the products we develop can have a sensitive use case and many of our customers simply will not have Chinese supplied products any more.
We work closely with a large company in the US who continue to source largely via 'Taiwan' (i.e. maybe China via Taiwan to avoid the Trump tax...) We pitched for additional demand from them on the basis of disruption in the region and the relative robustness of our supply chain - their view was that if China/Taiwan became a huge issue it would be catastrophic for their business anyway.
For our products, China has not been competitive for some time with rising employment costs, taxes and increasing 'complexity' in dealing in the region - other FE countries have really stolen a march on pricing and quality, even pre Covid; that said there's still many areas the Chinese suppliers dominate.
We have an additional challenge in that the products we develop can have a sensitive use case and many of our customers simply will not have Chinese supplied products any more.
Simpo Two said:
Though perversely if the UK govt imposes sanctions on China it will knacker its own economy and people as most of our stuff comes from there.
The overall message is the same as for Ukraine - don't get too dependent on other countries to make your own country work. But we get lazy.
But then we get told that policies such as ‘America First’ / ‘Britain First’ makes us “literally Nazis” The overall message is the same as for Ukraine - don't get too dependent on other countries to make your own country work. But we get lazy.
I have the impression that what is happening in Ukraine is merely the first course in a much larger conflict involving Russia, China, Iran and North Korea.
When it all finally kicks off, the pain is going to be immense.
105.4 said:
‘Britain First’
We'd see the return of "Made in Britain" stickers which are always handy so you know which products to avoid.The world's economy and supply chain is far too advanced and complex for us to be sovereign in all production - we could not sustain, for example, advanced chip design and production, and nor would our market be big enough to sustain it.
MrBig said:
Not always feasible though. The product I source out there is mostly cast. We've got zero chance of getting permission to build a foundry in the UK.
Out of interest why wouldn't you get permission? There are foundries in the UK still operating!As its pistonheads, I am genuinely interested not being argumentative!
Simpo Two said:
Though perversely if the UK govt imposes sanctions on China it will knacker its own economy and people as most of our stuff comes from there.
Yeah, the British government would never be so shortsighted as to impose barriers on trade with important partners. Silly idea.Redarress said:
Yeah right all British engineering companies are cr*p. Love to know how you came to that conclusion
I didn't quite say that. our niche and specialist stuff is often very good.But we aren't great at mass production at a competitive level for say, TVs, white goods, etc, the kind of stuff that would be in a shop with a label on.
joshcowin said:
Out of interest why wouldn't you get permission? There are foundries in the UK still operating!
As its pistonheads, I am genuinely interested not being argumentative!
It's seen as a dirty industry now. I know there are some still operating, but with all the net-zero targets and NIMBYs floating around, plus the housing targets to meet we were advised we had no chance. Shame the industry was so desperate to cut costs we closed our last one down about 8 years ago, now they want local production again As its pistonheads, I am genuinely interested not being argumentative!
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