I released Episode 53 of the Awesomers.com podcast some time back, and it's a deep dive into a book that I consider absolutely essential for anyone involved in manufacturing or trade with China: Paul Midler's "Poorly Made in China." If you're doing business there, this isn't just a recommendation; it's a necessity.

Paul Midler is a brilliant author who has genuinely lived the stories he outlines in this book. With over 15 years of my own experience trading with China, I can tell you that many of his anecdotes are eerily familiar – often both funny and tragically so. This book offers an extraordinary, in-depth look into how China's export industry truly operates, and indeed, how China itself works.

In this episode, I break down some of the most critical concepts Paul discusses, which resonate strongly with my own observations:

• Quality Fade (or Product Fade): This is real. Factories subtly reduce product quality over time—thinner shampoo bottles, changed formulas, subcontracting to cheaper facilities, or reducing material weight or thread count. These changes are often hard to detect visually, making vigilance crucial.

• "Price Go Up": You've probably heard it. Factories frequently increase prices, citing labor, environmental controls, or raw material costs. Yet, they rarely, if ever, inform you when prices could go down due to currency shifts or other factors. Their objective, after all, is to maximize their own profit.

• Counterfeit Culture & Intellectual Property (IP) Issues: The book highlights astonishing instances, like factories copying a customer's product formula and then audacious claiming it as their own intellectual property when asked for disclosure.

• Profit Siphoning & Under-reporting: Paul details cases such as Chinese partners in joint ventures siphoning off all profits, and factories under-reporting production of patented goods to avoid paying rightful patent fees, even devising elaborate schemes to circumvent oversight programs.

• Manipulation Tactics: I caution listeners about "guanxi" (long-term relationships), which, while valuable, can also be used as a manipulation tactic by factories. Understanding these strategies is paramount to maintaining an even playing field.

I truly believe that "knowledge is power" when navigating relationships with Chinese factories. "Poorly Made in China" is one of the very best books I've seen on the subject—extraordinarily insightful and entertaining, despite the serious lessons it imparts. Honestly, I'd consider it "entrepreneurial malpractice" not to recommend it.

If you trade with China, buy products from China, or develop products there, reading this book and understanding these dynamics will help you be better prepared and significantly minimize potential problems through proper management.

Watch the full episode for a deeper dive: 👉 https://awesomers.com/53

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Let me know in the comments if you've read "Poorly Made in China" or experienced any of these situations!

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