What? How? And Why?
If you work with Chinese Suppliers, you will realize that your supplier will tell you that prices have incresed due to rising cost of material. It's true. Not only my supplier but a lot of Americans eCommerce businesses in my networks experienced the same thing.
It has been happening for some time now and this time, it's starting to take effect.
How?
A few reasons.
1. The Chinese government is shutting down a lot of small factories. A lot. Many were shut down, raw materials prices increase, some middle factories got shut down too. The objective is to fight pollution and they wanted air pollution to stay below 2.5PPM. It has happened many times, but this time, it seems really serious.
2. Consequently, this causes high demand because a lot of factories that makes our products are also affected, if not shut down.
3. The rising RMB. It has been happening for some time too.
Why?
The Chinese government have been trying to fight pollution for some time now, and this time, they are very serious about it. Many factories being shut down means a lot of production are going to be unavailable and it's the same for our products.
The price is expected to continue to rise for this entire year and not likely to drop.
So price rise and less production for our products. And this does not mean goods made in Japan/Korea/USA will remain the same. They will also be affected.
You have been told.
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