Key challenges for Chinese manufacturers:
- Information gap: Lack of information on LMIC demand, needs and opportunities. Limited direct access to LMIC government tenders.
- Price-only competition: Intense price-only competition among Chinese suppliers with insufficient quality control on exports,
encouraging some suppliers to cut costs by using inferior materials or bypassing quality management, thereby disadvantaging
manufacturers who adhere to proper quality control standards
- Low brand awareness: Fragmented supplier landscape and low brand awareness for individual Chinese suppliers in the LMIC markets.
- High supply chain and logistical costs: Additional costs are incurred from product registration in-country, international
qualification acquisition, shipping costs and tariffs, among other factors, making affordability a challenge despite China’s
low production costs.