Home > Industry > Coronavirus > Federal Government Warns About Doing Business With Chinese Companies, As Consumers Dump Buying Chinese Branded Products

Federal Government Warns About Doing Business With Chinese Companies, As Consumers Dump Buying Chinese Branded Products

Huawei smartphones sales are down over 75% in Australia as consumers turn off buying high risk Chinese products such as Oppo, Realme, Vivo and Xiaomi smartphones or Hisense, ASKO or Haier, Midea or Fisher & Paykel appliances, now the Australian Government has issued a warning about doing business with Chinese Companies.

Online where a lot of Chinese brands are now trying to sell their products after several retailers cut back on ranging Chinese products brands like Realme have witnessed a 42% fall in monthly traffic while Hisense has seen a 21% fall in traffic to their web site during the past month as the Chinese Communist Government moves to detain Australian journalists while also banning Australian products.

Recently the Australian Trade and Investment Commission warned Australian business looking to partner or trade with Chinese Companies carries certain risks that Australian companies might not be aware of. These include:

Commercial fraud
Breaches of contract
Intellectual property infringement and theft
Bullying, intimidation, and threats to physical safety
Restrictions on movement
Criminal charges for engaging in activities that may not constitute crimes under Australian law.

The Federal Government Department has also warned Australian companies should spend time should conduct due diligence before establishing a business relationship with a Chinese Company.

Globally brands such as Hisense who own both ASKO and Toshiba brands names and Haier who own the former New Zealand Company Fisher and Paykel are buying up these Companies to make their Chinese heritage.

According to analysts’ consumers are turning to brands whose products are manufactured in Countries other than China.

According to the director of one Company who sources millions of dollars’ worth of products from China for Australia retailers there is real consumer now that Australian journalists have been kicked out of China of manufacturing in China.
The executive who has just relocated from Hong Kong back to Australia said “How do we get our staff and clients into China, are they safe, it’s becoming a real issue as we are already having problems with containers and shipments”, he said.

Observers claim that market volatility caused by COVID-19, alongside sweeping regulatory changes in China, has driven companies across various industries to urgently re-evaluate their complex global supply chains which in the past have been centred on production in China.

They claim that supply chain diversity is essential for successful business operations who want to minimise the risk of doing business with Chinese Companies.

They claim it’s critical that companies evaluate and understand the risk associated with current and potential suppliers especially as Australians are now being threatened and intimidated when doing business in China.

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