03.11.2017

China's clampdown affects supply chains

Orders from China may be delayed due to the environmental laws…

Over 40% of factories in China are at least temporary shutdown due to the enforcement of government
campaign to resolve the wild air pollution. That ultimately reflects on the supply chains all around the
globe.

NPR report states that the inspectors from China’s Ministry of Environment we sent to provinces in order
to fine or charge officials in more than 80,000 factories. In the country where such regulation never actually
been taken up seriously and were constantly ignored, it is hard for the government to find the right method
to stop it in short period of time. However the method that they used was to stop the electricity and gas
flow to factories in order to find our which factories are obeying the environmental laws and which are not.

No doubt that those implementations are good for the environment and human health, however for the
businesses it is a huge disadvantage and big problems are caused for supply chains. The quantities of
orders from China are enormous and therefore many businesses had to shift their operations to other
countries so they could meet the orders on time without major delays.

NPD and Sourcing Journal also states that the experts of the situation say that the most impact is taken
by the factories in the textile/apparel production business as they find it difficult to control the pollution
problem said Wang Hua, general manager for China’s Ningbo Dragonsilk Fashion Co.

However on the positive side of implementation of strict environmental law - Crotty’s colleague Archie Liu,
general manager of MKT & Associates said “After all, factories will be better, more sustainable, and more
socially responsible after being inspected,”. “It’s better for our supply chain. Then we can tell Walmart,
Costco, and other retailers of ours that we’re qualified and that everything we make for Americans are
environmentally friendly.”

The reason behind that strict implementation is because the pollutants can cause serious problems such
as heart disease and lung cancer. And the planned objective is to cut the particulates down to 35 micrograms
per cubic meter by 2035.

At SDI Gifts we work with suppliers that have good reputation, are environmentally friendly and use
sustainable methods of production. We always make our own audit before we start to work with new
supplier and fully understand the importance of working with reliable manufacturers, who follow
local laws, rules and responsibilities. Priority is given to those who have a CSR positive audit.

Also we care about the product safety and all our products have all necessary certificates. Our
plastic travel mugs are made of food safe BPA free plastics, our travel pillows are made from 100%
Polyurethane memory foam and soft Lycra fabric, which supports your head and neck well and
gives soft-touch feeling to your skin.

To have a look at our products range, please click here.

Sources used:
ASI
NPR
Sourcing Journal