US small businesses are partnering with Chinese manufacturers

Some U.S. small-business manufacturing firms may be boosting their businesses by partnering with Chinese companies, Fox Business reported. American startups sometimes experienced difficulty finding the right local manufacturers or could not afford to operate production in the U.S.

Companies that use specialized eco-friendly materials in their products may not be able to find them from suppliers in the U.S. The lower price points can also be advantageous to entrepreneurs who have just started a business, the source said. However, partnering with foreign suppliers is not without risks. Importing goods from China can lead to poor quality products, but sometimes Chinese companies are willing to collaborate to make improvements.

Small businesses can put themselves at risk by being too trusting of their international counterparts, so they need to find a reputable manufacturing partner. China has a bad reputation for intellectual property theft, which highlights the importance of supplier quality management, according to The Financial Times.

Establishing a face-to-face relationship with Chinese partners can be critical to the success of the enterprise, Fox Business stated. It can prevent entrepreneurs from falling victim to scams. Small businesses should always check to make sure an international supplier is legitimate.