While China remains a key node in the global supply chain, firms are increasingly cautious about maintaining large, permanent workforces.

Yet, as many have discovered these past few years, you can’t just up and leave China. Relocating to, say, Southeast Asia is often impractical and expensive.

This dilemma has led many to seek flexible staffing solutions that maintain their presence while reducing risks. Hence, we’ve seen a surge in inquiries about part-time hiring as a potential answer.

On paper, it’s appealing:

• Keep your foot in the door in China
• Avoid long-term commitments
• Potentially save on costs

Sounds perfect, right? Well, not so fast…

Part-time hiring in China, while appealing, comes with its own set of complexities.

How Does China Define Part-Time Work?

Part-time employment only gained official recognition in Chinese labour law in 2008.

Despite this, strict limits apply to part-time work in China:

• Max 4 hours per day
• Max 24 hours per week

Important: Workers can claim full-time status if these limits are exceeded.

China’s approach differs significantly from other countries. For instance, the U.K. has no specific hour threshold defining full or part-time status, while the U.S. sets the part-time maximum at 30 hours per week.

Employers should set realistic expectations for part-time workers in China, keeping in mind these strict time limits.

We strongly advise tracking hours meticulously. Proper documentation is crucial, as without it, workers might claim full-time status during disputes, potentially leading to legal issues.

Do Part-Time Employees Need a Contract?

While oral contracts are legally acceptable for part-time employment in China, having a written contract is strongly recommended.

And don’t simply modify a full-time contract by reducing hours. Instead, create a tailor-made contract that clearly outlines:

• Duration of employment
• Job responsibilities
• Compensation details

Unlike full-time positions, part-time roles in China do not have a probation period. Instead, employers can terminate part-time workers at any time without cause. However, part-time employees can also leave their position at any time.

REMEMBER: Relying heavily on part-time employees may pose a risk due to the ease with which either party can end the working relationship..

Social Insurance and Liability for Part-Time Workers in China

Social Insurance

Social insurance in China is a comprehensive system that provides various benefits to employees. For part-time workers:

• Only work-related injury insurance is mandatory for part-time employees
• The other components of social insurance (pension, medical, unemployment, maternity) are not mandatory for part-time workers
• However, while not mandatory, some employers may choose to offer additional benefits to part-time employees as a way to attract and retain talent

Employer Liability Insurance

This insurance protects your business against claims from employees for work-related injuries or illnesses. While not mandatory, it’s highly recommended:

• Covers claims for personal injury or accidents during employment
• Essential protection against potential legal claims
• Applies to part-time workers, freelancers, and even clients who might injure themselves in your facility

CRUCIAL: Without this insurance, you're exposed to potentially significant financial risks if anyone is injured on your premises.

Managing Part-Time Employees in China from Abroad

Part-time employees can be valuable assets, but managing them effectively, especially from another country, requires careful consideration.

Focus:

• Part-time staff often juggle multiple jobs or responsibilities
• Your work will not be their sole focus.

Availability:

The strict hourly limits on part-time work in China further complicate management.

If you need to contact your part-time employee outside their regular working hours (which is likely due to time zone differences), any work-related communication could count towards billable hours.

This situation risks pushing the employee over the part-time threshold, potentially exposing you to full-time status claims.

Moreover, if an urgent matter arises and the employee has already worked their four hours that day, you’ll be in a difficult position. You’ll either have to wait until the next day or risk exceeding the legal part-time work limits.

Full-Time Vs. Part-time

As a roundup, here are the key differences between full-time and part-time employment in China:

Simplifying Part-Time Staffing with Kinyu’s Streamline Model

While part-time staffing offers flexibility, navigating China’s complex labour laws is often tricky. The China Desk – Streamline Model provides a hassle-free alternative:

Key Benefits:

• Access to Kinyu’s internal supply chain managers
• Flexible engagement: 5-10 hours per week
• Direct supplier representation
• Full compliance management handled by Kinyu
• Priority management aligned with your needs

Our Streamline Model gives you the advantages of part-time staff without the legal complexities. Kinyu’s full-time employees work part-time for you, ensuring seamless operations and regulatory compliance.

To discover more about The China Desk – Streamline Model and how it can enhance your business operations, download our case study or schedule a call with our team.

The post Part-Time Hiring in China: What You Should Know appeared first on Kinyu.

Let’s examine the critical differences between the Comprehensive and Streamline models.

Full-Time vs. Part-Time

The Comprehensive Model from The China Desk allows you to engage personnel full-time, typically 40 hours a week on an ongoing basis. In contrast, the Streamline Model provides the option to engage personnel part-time, usually 5-10 hours a week. This can be increased to 20 hours if needed.

Short-Term vs. Long-Term

The Streamline Model is a flexible, short-term bridge that allows you to experience having a team member on the ground. A manager’s engagement via the Streamline Model typically lasts 1-6 months. Conversely, the Comprehensive Model is more suited for long-term arrangements, with contracts for dedicated full-time personnel typically lasting 1-2 years.

External Hire vs. Internal Engagement

The Comprehensive Model from China Desk involves a recruitment process where we hire personnel based on your specific job description (JD). The Streamline Model, however, assigns a Kinyu’s internal team member to your business operation for a set number of hours per week.

Customizable vs. Fixed Deliverables

In the Comprehensive Model, a company can define a JD and hire any preferred candidate. The Streamline Model offers fixed deliverables in our core areas, including procurement, ESG, and QAQC. The Comprehensive Model allows you to engage someone with experience in your specific product category, while the Streamline Model offers a manager with a fixed skillset.

HR Method vs. Consultancy Method

In the Comprehensive Model, Kinyu hires personnel on your behalf, essentially acting as the employer of record and adhering to all elements of Chinese labour law. For the Comprehensive Model, there is a greater focus on HR management and the engagement of the full-time employee recruited for you. In the Streamline Model, Kinyu sets the deliverables following a consultative process with you. This method helps us understand your business better and propose long-term plans.

China Desk Hiring Models

Ideal Comprehensive Scenario

You operate consistent manufacturing and supply chain functions in China, with well-established vendors already in place. Now, you’re seeking a China-based professional with 5-10 years of experience in a specific position within your product category. This new addition will join your team, working closely with your internal team and Chinese suppliers. Additionally, you’ve set aside long-term HR and hiring budgets, including a dedicated budget specifically for hiring in China.

Ideal Streamline Scenario

You’re a high-growth company scaling your team worldwide. Until now, you’ve worked remotely with your suppliers but recognized the need for change. Although the exact role you need to fill in China might be unclear, you urgently need an on-site presence. The commitment level, full-time or part-time, is also unclear, and finding part-time personnel has been challenging.

Key Considerations in Choosing the Ideal Model

The primary distinction between the two models is flexibility versus commitment. If you want a dedicated, exclusive team member for your Chinese operations, you may consider a full-time hire. This option can be facilitated through The China Desk Comprehensive Model (you can review the relevant case study here).

On the other hand, if you need part-time flexibility and quick onboarding, consider The China Desk Streamline Model (please check out our Streamlined Model case study here).

The post Hiring in China – China Desk Comprehensive or Streamline? appeared first on Kinyu.

Mixed Levels of Engagement After China’s Opening Up

After three years of travel restrictions, China has opened up, leading to mixed levels of engagement. Some companies have grown accustomed to maintaining long-distance relationships with their Chinese business partners, while others hold a lukewarm attitude towards the country that was once seen as a land of opportunity and excitement. The first offline Canton Fair held earlier this year, after a three-year hiatus, revealed a lukewarm sentiment among companies.

At Kinyu, we understand this changing landscape. Companies expanding in China no longer have the inclination to hire a large workforce on the ground, and the traditional buying office model has undergone a complete transformation. To address this shift, we introduced The China Desk — a new business model offering maximum support, transparency, and flexibility when establishing a local presence. Through The China Desk, companies can hire strategic personnel who are then assisted by Kinyu’s centralized HR and supply chain advisory platform.

However, amidst the backdrop of decoupling drama and trade tensions, many businesses find the commitment of a full-time hire increasingly daunting. Therefore, transitioning from a zero to one headcount in China seems overwhelming for most.

Overcoming Challenges with the China Desk-Streamline Model

Our China Desk – Streamline Model provides a solution. Clients can engage Kinyu’s internal supply chain managers on a weekly basis, allocating 5-10 hours per week to represent them before suppliers. Since 90% of issues with Chinese suppliers can be resolved through effective communication, especially in Chinese, we develop a set of deliverables applicable across different sectors. This streamlined approach offers considerable value through easy engagement. Additionally, Streamline managers are Kinyu’s internal employees. Our senior team and I directly oversee them, ensuring transparency. This way, you can rest assured there are no hidden motives often associated with ground agents.

With the Streamline Model, we aim to help companies grow and trial the concept of local employment. It is mainly a stepping stone on your journey in China. Consequently, if you decide to hire someone, the experience with the Streamline model is beneficial. This model allows you and Kinyu to understand your needs more clearly. With a clear understanding, we can write a more accurate job description. Ultimately, this leads to the right hire for your organization.

Learn More about the Streamline Version of The China Desk

At Kinyu, we are committed to providing flexible and tailored support to companies expanding in China, addressing their core needs. To learn more about the Streamline version of The China Desk and how it can benefit your business, download a case study or book a call with our team. We look forward to hearing from you!

Benjamin King

CEO

Kinyu SCM

The post Streamline Service: Essential for Companies expanding in China appeared first on Kinyu.

Having a dedicated team on the ground is undoubtedly the most effective way to manage your supply chain in China. But for foreign companies, deciding who to hire and when can be a difficult and risky process.

Initiate your China operations by hiring our Streamline Manager!

To alleviate these common pain points, Kinyu is launching a flexible, part-time model of its China Desk service called ‘Streamline.’ We can help you engage supply chain personnel for up to 10 hours a week without any strings attached, long-term commitment, or involvement with China labour laws. 

With Streamline, you receive your dedicated Manager within 72 hours and can flexibly deploy them while our Kinyu Management team helps you plan your long-term China strategy. The Streamline Model offers flexibility and is an optimal solution for startups and high-growth companies aiming to establish a foothold in China.

Streamline will also open access to a part-time China-based team member, representation on the ground, flexible deployment, access to Kinyu’s resource platform, expert advisory, and partner networks. 

Discover the benefits of the Streamline Model and set your business on a trajectory of success in China today!

To learn more about, check out our new web page or book a meeting with one of our experts!

The post The China Desk: Streamline – Hire personnel part-time in China! appeared first on Kinyu.

Employers in China are required to follow specific heatwave policies. Non-compliance may result in potential employee claims against your business.

Different regions of China impose varying requirements for employers to subsidize their workforce amid high temperatures. For instance, Tianjin mandates a daily heat subsidy of 41 yuan ($5.65) for employees, while Guangzhou requires a monthly 300 yuan. If you’re grappling with understanding business regulations in China, particularly in your operation area, we’re here to help!

For this deep dive, we will focus on heat-related social compliance obligations in Tianjin. Although your obligations will fluctuate across different locations, Tianjin provides a solid representation of the general approach.

So, let’s dive right in. Tianjin enforces two crucial heat-related policies that your business can’t afford to ignore: the High-Temperature Subsidy, which only applies to certain employees, and the Heatstroke Prevention Subsidy, which applies to all employees without exception. We’ll unpack these policies one by one to give you a clear understanding of how they impact your operations.

High-Temperature Subsidy

Employers are obligated to provide a high-temperature subsidy in two scenarios:

1. Employees are working outdoors in temperatures exceeding 35 C.
2. Indoor temperatures climb beyond 35 C, and efforts to keep it under 33 C prove unsuccessful.

Implementation

• Amount: The subsidy amounts to 12% of the average daily salary in Tianjin from the previous year (2022). The authorities are yet to announce the exact figure for the current year, so you can refer to last year’s amount (41 yuan per day) for now.
• Calculation: The subsidy can accrue on an hourly basis, capped at 8 hours per day. However, if you lack sufficient evidence to support hourly calculation, the authorities will deem it a whole day.
• Payment: You should disburse the subsidy monthly, correct to one decimal place, and in cash.
• Temperature data: Workplace temperature records should align with the data from the municipal weather station, and workplaces must maintain these temperature records for a minimum of two years to facilitate possible inspections. Therefore, installing a reliable thermostat could be a worthwhile investment to keep you on the right side of compliance.

If your China team operates out of Tianjin, we strongly advise administering this subsidy each month. Should you not include it in this month’s remuneration, ensure you notify your employees and secure their consent.

Heatstroke Prevention Subsidy

Alongside the High-Temperature Subsidy, Tianjin, like many other municipalities and provinces across China, enforces additional regulations during the summer. Notably, employers in Tianjin are required to offer a Heatstroke Prevention Subsidy.

In Tianjin, the high-temperature subsidy is paid every summer from June through September, irrespective of the temperature.

The Heatstroke Prevention Subsidy in Tianjin is compulsory and applies to all employees.

This subsidy is 3% of the previous year’s average monthly salary in Tianjin. You can disburse it to your employees either monthly from June through September, or in a one-time lump sum payment. The subsidy amount was 224.3 yuan per month last year; however, the final figure for this summer is still awaiting confirmation from local authorities.

If you choose to pay the subsidy this month, any remaining balance can be made up in the following month once the authorities announce the subsidy amount for this year. Alternatively, if you prefer to pay it as a lump sum in September, it is important to inform your workforce about your plan well in advance.

More Than Just Subsidies

Beyond the intricacies of subsidies, it’s crucial to prioritize thoughtful operational strategies amidst a heatwave. Dispatching your team members to factories without adequate provisions to withstand the heat isn’t just a health risk — it could land you in hot water for violating social compliance norms.

The China Desk – Your Solution in Sweltering Heat

Successfully navigating these policies amid a heatwave can be a steep climb, but The China Desk is here to lighten your load. We are more than just a service – we are your ally in not only hiring the right team in China but also in understanding and adhering to local regulations, ensuring the safety and satisfaction of your employees.

Contact us today to learn how we can take the heat off your business during China’s heatwave. Stay informed, stay compliant, and most importantly, keep cool with The China Desk.

The post Don’t Sweat: Your Guide to China’s Heatwave Policies appeared first on Kinyu.

One stop hub for all industries

The variety of product categories on display, over 3 phases, is a major draw for people. Sourcing companies can view products and meet suppliers from across multiple industries and from all over China.

Travelling in and around China is not easy, especially after Covid. Instead of travelling to distant factories and trade shows across China, many foreign business people want to fly into a foreign friendly manufacturing hub, and view everyone that China has to offer. Of course, the Canton Fair cannot showcase everything China has to offer, but it is indeed the closest thing.

With Guangzhou’s history of being foreign friendly and open for business, it’s a great nexus of manufacturing and foreign trade. This is what has made the Canton Fair one of the world’s largest trade fairs.

What do people look for at the Canton Fair?

People come to Canton Fair for many different reasons – which is what makes it such an exciting and vibrant occasion:

Finding new suppliers

It is a great place for connecting with new suppliers and a refreshing alternative to searching for partners online. People travelling in for Canton Fair to want to meet new suppliers, who bring their team and products to display.

Source new products and ideas

China is notorious for its product development, if there is a need, there is a product! It is a great opportunity for foreign business people to walk around and see what product innovations are on display, and analyse what market potential there is back home.

Catching up with existing suppliers

The Canton fair provides a great opportunity for business people to catch up with existing suppliers and partners – discuss new business deals and cooperation methods. Although we expect suppliers to be swept off their feat with new enquiries and connections.

Finding new trade services

Working in and with China has been challenging over the last few years, and more companies have been relying on service partners on the ground here. There is a large trade services section at the Canton Fair, where business people can find some great resources to facilitate their supply chain management.

This is where Kinyu will be! The China Desk is a great platform for you to hire personnel and access resources on the ground to facilitate your resources. If you are attending the fair, visit our booth for a coffee!

If you cannot come this year, but interested to know more about the fair and The China Desk – you can book in a call with us here.

The post What are you looking for at the Canton Fair? appeared first on Kinyu.

Who to hire

The first and most obvious place to start is who you should hire. If you are unsure, try writing down all the areas of your operation where you wish you had someone in-country that could add value. These may include quality, sourcing, and product management. Write them all down in order of priority.

If you have a supply chain in China, yet no personnel, you will likely be looking for a Jack-of-all-trades; someone to oversee multiple aspects such as vendor relationships, third-party partners, and communications. This team member will act as your overall eyes and ears are on the ground. If this sounds like what you need, check out the role of supplier account manager.

How to budget

Thinking that hiring in China is cheap is a significant misconception foreign companies make. When it comes to making a budget, you must ask yourself these questions: 

• What role are you looking for?
• Which part of China do you want to hire?
• How experienced should the perfect candidate be?
• What level of English is necessary for this role?

Specific roles and functions are cheaper than others, so it is essential to remember: You get what you pay for. If you can answer the four questions above, you should be able to carry out accurate market research for budgeting purposes. Also – don’t forget to budget for mandatory social insurance.

Employee insurance: Mandatory and advisable

You should know about two types of insurance: Social insurance and Employer’s Liability Insurance.

Social insurance is mandatory by China’s labour law and is similar to a country’s national insurance contribution by companies. 

China’s social insurance includes five core elements: Pension, Medical, Unemployment, Maternity, and Work Injury. On top of this, there is the housing fund.

Look out for a full article on this topic, but to summarise, there are two key points: 1) it is mandatory by law and 2) budget 30-40% of the monthly salary pay for this.

Employers Liability Insurance – this is not mandatory but highly advisable. Legally speaking, China is known for being very employee-friendly, including health and safety in the workplace. If someone gets injured at work – the employee may sue the company. You can find an entire article on this insurance and how to incorporate it into your HR policy here. Remember, some policies cover international travel if your personnel need to conduct business outside China. Golden Rule: It is never straightforward, so seek advice.

How to employ someone?

There are several options available when it comes to employing someone, so the right one depends on your company and situation.

1. Setting up a WFOE – You will need the complete entry method to set up your WFOE and hire your internal team. This method is the most comprehensive way to build your team. It may also tie in with other reasons to set up an entity, primarily if you sell products in China. However, it does come with some punchy costs, both upfront and ongoing. You may only need to hire part of the back office as there are many professional firms to outsource various functions. However, it can also be complicated to wind down, and there should be special attention to the critical management team you hire.

2. Using an HR/staffing agency – Many firms can act as the Employer of Record (EOR) to hire your staff. This method is the most stripped-down option for hiring. Professional EOR companies will happily help you engage your proposed employee, but as a result,  there will be minimal infrastructure around your new hire. The costs vary on how professional the EOR firm is. It is essential to understand the insurance policies and employment contracts that the firm uses.

3. The China Desk by Kinyu is a blend of a traditional HR services platform with in-country management and advisory. The China Desk allows a company to hire just 1 or 2 people but get the benefits of an entire team in China. It is the platform of resources and knowledge you can build with your WFOE but with the flexibility of using an HR company.

How to find the perfect talent?

Hiring the right talent is crucial for success in your China operations. China has plenty of people wanting to work, but the search for someone who has the right qualifications, English skills and motivations is where many companies come undone. The exit of Linkedin has exacerbated this situation even further. There are a few options: joining your country’s chamber of commerce in the region, local recruiting firms, and job websites such as Liepin and Boss ZhipinUnfortunately, you cannot post jobs on job websites via a staffing agency; it can only be done with your WFOE or as part of the China Desk.

Hiring under The China Desk by Kinyu includes a launch phase to support your talent search, combining a multi-faceted hiring strategy. This strategy is an entire topic, so look for more articles on talent search!

So here are the five core areas you must consider when building your China team. The next step is to book a meeting with our team for more support on hiring in China!

The post Hiring in China 101 – the key things you need to know appeared first on Kinyu.

So what does a supplier account manager do?

The role of a supplier account manager is similar to a key account manager’s, but instead of fielding customer inquiries, the role focuses on dealing with internal issues. These issues are typically related to the supply chain. It is predominantly communicative and involves vendor management, working with third-party quality partners and coordinating logistics. Put simply; they will act as the first eyes and ears on the ground. 

This role calls for a jack of all trades and incorporates every part of the supply chain. The functionality of this role inspired the China Desk by Kinyu. Kinyu Founder and CEO Benjamin King acted as a Jack of all trades for several companies, prompting him to set up the China Desk and hire the right supply chain personnel for his clients.

What are the particular responsibilities of this role?

Below is an example of the day-to-day responsibilities a supplier account manager might have:

• Help to manage the company’s supply portfolio in China/Asia, assisting with managing communications with the supplier network.

• Work with stakeholders to ensure complete and transparent cooperation with suppliers.  

• Working with the global product sourcing manager on forecasting, purchasing and compliance teams to ensure production schedules are on time and products are ready for new markets/compliant.

• Helping the head office global product sourcing manager to oversee product quality control through engagement with factories and quality inspectors.

• Help to ensure the product lifecycle’s efficiency and help develop new product ranges.

• Liaise with and manage relationships with an existing network of 3-party cooperative contacts, e.g. Freight forwarders, QC & audit companies, photography studios, and document printers.

The key value-add of the supplier account manager is that they can communicate not just with the factory sales team but with all the relevant departments. Usually, only the sales team can speak English, and they act as the go-between within the various departments within the factory organisations. However, not all information gets relayed. Sometimes this is an accident, but occasionally it is on purpose.

A Supplier Account Manager can strengthen this communication function – and liaise with the quality managers, production manager, or factory owner.

Skills and Experiences

If this is your first hire in China, look for someone with at least five years of experience in manufacturing/supply chain. It is also preferable that they have experience in your product industry. Their written and spoken English must also be good, as they will be responsible for communicating your concerns effectively to your suppliers. Below are some other qualifications you may consider:

• Ability to assess and improve factory processes and quality of manufactured goods.
• Experience in product development/new product sourcing.
• Understanding of product materials and design.
• Understanding of the evolving Chinese market.
• Competent in Microsoft Office – particularly excel.
• Excellent organisational skills.
• Strong management and leadership potential.
• Comfortable with figures and collecting, analysing and interpreting data.
• Solid independent judgement ability and integrity, ensuring they make fair decisions.
• Strong interpersonal skills.
• Reliable and trustworthy individual.
• Ability to travel – travel to factories and suppliers will be required.
• Willingness to travel internationally.

One final attribute to note is their leadership potential. We mentioned above that the supplier account manager is a ‘jack of all trades’. Therefore, familiarity in all areas is an essential aspect of leadership. In addition, as your team grows, you may look to your supplier account manager to become a GM.

Are you looking for a supplier account manager? Get in touch to learn more about hiring under the China Desk.

The post Hiring in China – Supplier Account Manager appeared first on Kinyu.

Whilst part of the consistency problem is due to quality management systems (QMS) within factories, it also depends on the controls you put in place. So how can you ensure that what comes off the production meets your expectation? 

The sky is the limit regarding what processes you can put in place. They could range from simple QC inspections to a written quality program for manufacturers to follow.  

Startup to scale-up – choose your quality strategy 

For startup companies or small projects – a comprehensive supplier assessment on the factory QMS and inspections before shipment are a reasonable strategy. 

But what happens when a company grows? At what point do you develop this startup quality plan? 

Kinyu CEO Benjamin King thinks there are three key areas you need to review if you are scaling your company: 

1. Production quantity and value 

2. Brand value 

3. New product development 

Production quantity and value 

When your production volume increases, your sample size for inspections also increases. However, paying a third-party inspection firm a day rate can create a considerable cost when your production volume increases. As a result, you must review the annual cost of inspections against having your own in-house QC inspector. The reason? You could end up paying $70,000 to inspection firms when your team may have the skills for internal hiring. 

Brand value 

Brand value is incredibly critical. Although minor recurring issues may not necessarily render the goods unsellable, they can impact customer satisfaction. For example, if you have developed a loyal customer base and invested in your brand image, the odd defect, such as marks on packaging, can harm the value of your brand and, therefore, your company. If the issue persists, you need someone to investigate the process, to uncover where and why these problems are occurring. 

New product development 

Many companies start with off-the-shelf products with which the factory is already familiar. This cautious approach is because there is much more risk involved in designing a new product, especially regarding quality control. 

What is the role of third-party inspection companies? 

The clue is in the title – these companies are third parties, and they carry out inspections. This step is crucial in giving the buyer peace of mind. Further, third parties can be agile, cost-effective and cover all major areas in China. 

But what happens when there is a recurring issue? 

Inspection companies provide the report, and they point out the defects in the finished goods. What they do not do, is solve the problems. It is difficult to find a third party willing to investigate the issues, as they do not know the product as well as you do.  

Therefore, you either rely on your supplier to rectify the issue or consider hiring someone in-house. Your personnel will conduct inspections, root cause analysis, discussion with the factory stakeholders, corrective action plans and continuous monitoring of the solution. 

Combine innovative tech and the China Desk to build your quality function 

One value-add from inspection companies is a detailed report. However, there are now innovative tech companies such as Qarma and Topo providing the software and apps so that your personnel can compile the information in real time. Such apps also record and analyse defect data to provide KPIs to factories and staff over time. 

Additional services like the China Desk can be lifelines when building your in-house quality function with minimal investment in China. 

The China Desk + quality software = In-house China Quality Function. 

At Kinyu, we pride ourselves on helping our clients streamline their overseas processes! With our China Desk service, you can search, hire, manage and empower your staff in China. Our comprehensive offering will advise you on quality personnel, experience, and salary structure. The best part? You can combine these advisories with quality software tools, and, hey presto! You have your Quality team. 

Come back soon for more detailed examples and articles on what Quality roles you can hire in China! 

Follow-up articles: 

The difference between QA and QC from a quality and HR perspective 

Hiring in China – QC engineer/QC manager 

Hiring in China – QA manager/QA engineer 

The post Quality Management in China: What is your strategy? appeared first on Kinyu.

Whilst the economic situation in the UK is still very much up-in-the-air, we’re not going to get bogged down with the why; countless politicians and media channels have dissected and chewed over each morsel of reasoning following the fallout of the mini-budget. However, we want to highlight the importance of being prepared to deal with these currency fluctuations. 

For many years now, companies have been conducting business on an international scale. However, whilst many people take comfort in knowing that a reputable bank is looking after their money, they often charge hefty fees on exchange rates of 5-6%. Although this may not sound as though it amounts to much, a client could lose out on thousands of GBP interest if they have large amounts of money in the bank. For example, Travelex is 10-12% on the high street. Although this interest rate isn’t too detrimental if you’re withdrawing small amounts for a holiday, this doesn’t make sense for more significant business transactions.

Enter The Broker

Brokers, also known as FX houses, got involved, and other vendors could offer lower rates to SMEs. In addition, FX banking allows customers to go into their portals and exchange money or even order cash for a future date. As a result, many customers opt to buy their currency in advance and could invest millions in pre-purchased currency. This pre-purchasing is called FX forwarding. At Kinyu, we pride ourselves on partnering with experts in the field, and we work closely with Thwaytes Capital to manage our FX exposure. Co-founder Charlie Thwaytes comments: 

“80% of names trading nationally have lost out on money due to currency fluctuation, many over 1 million”. Charlie Thwaytes – Co-Founder, Thwaytes Capital.

Now that we have discussed the relationship between foreign currencies and the rise of the FX house let’s return to the mini-budget. One of the most significant fallouts from the mini-budget was the near 5% drop in the Pound. This drop took place over just a few days and starkly contrasts the beginning of August 2022, when GBP was trading at around $1.19. After Liz Truss announced the mini-budget, the rate was as low as $1.03. According to an article by Forbes, this dramatic fall led to the Pound reaching its lowest rate since 1985. In the words of Liz Truss herself… That. Is. A. Disgrace. 

So, to explain how this impacts SMEs, let’s imagine you are a UK importer of goods. You import goods from suppliers in China, sourcing both items and materials in USD. As an SME trader, you should employ foreign exchange companies to sell you the currency of the country from which you purchase your supplies. This planned currency purchase is an FX Forward, and you can benefit for multiple reasons. 

• FINANCIAL PROTECTION: If the Pound drops, it will start eating into your profit. In extreme cases, for example, if GBP were to drop 20%, your markup would be much less, eliminated or even running at a loss.

• STRONG SUPPLIER RELATIONSHIPS: By securing the rate, you will always know exactly how much your products cost, no matter what happens to the currency. You won’t need to have awkward conversations with your supplier, as you can both plan for a set price.

There is no Crystal Ball for Currency Exchange.

Whilst this may seem like a failsafe solution, there are some downsides. If people start to hold out to profit from the exchange rate, they can lose even more money. Getting bogged down with where the market is going is difficult because no one ‘truly’ knows where it is going. 

Navigating the trends in FX can be tricky, and it involves knowing your supply chain in and out. It also consists of locating, screening and working alongside the right partners. Picking the right partners for your business can ensure that you maximise your financial potential and have accurate insights. 

Good Supply chain management means managing all the risk factors, including currency fluctuations. At Kinyu, supply chain management is our bread and butter, and we work with strong partners like Thwaytes Capital, enabling our clients to cover all bases. 

Whilst you can do everything possible to eliminate FX risks on your side, suppliers can sometimes expose you to risks through their supply chain. So stay tuned for our upcoming blogs as we further unpack fluctuations in USD and RMB currencies. 

The post Currency Exposure – the risk SME importers face and the tools they have to play with appeared first on Kinyu.