China Supply Chain Progress Still Hampered by Corruption, Pollution, Working Conditions

Supply chains risks in China still include extremely high levels of corruption, environmental pollution issues and slow working conditions reforms, according to new analysis from Sedex.

While China remains “unparalleled in the region in terms of its productivity levels and speed at which deliveries can be turned around”, data from Sedex and global risk company Maplecroftpoint to continuing supply chain challenges such as health and safety issues, wages and working hours; inadequate storage and management of hazardous chemicals; and the sluggish progress of political liberalization.

“It is important that companies operating in the country understand the changing environment, with a growing middle class and changes in the availability of previously plentiful suppliers of cheap labor,” said Carmel Giblin, Sedex CEO. But the country’s main advantages remain its productivity levels and the speed at which deliveries can be turned around, which are “much, much better” than in countries such as Bangladesh and Cambodia, added Maplecroft’s Arvind Ramakrishnan.

Click here to download a copy of Sedex’s Responsible Sourcing Insights Briefings: China.