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Why Everyone Wants Out of China

Written by Asia Agent | Feb 24, 2026 9:30:00 PM

Why Everyone Wants Out of China (But Can't Find Real Factories Anywhere Else)

Updated February 2026 | Multi-country sourcing

It's not just tariffs anymore.

It's Taiwan. Uyghurs. Japan trade restrictions. Europe banning Chinese EVs. Israel blocking Chinese cars near military bases.

Every week brings news that signals: continuous decline in trust, increasing tensions.

And every week, more importers say the same thing:

"We need to get out of China. Or at least have a Plan B before something serious happens."

The problem?

Finding real factories outside China is nearly impossible.

What's Actually Missing

In China, you have infrastructure:

  • 1688 - You can search, compare, verify business licenses, see transaction history
  • Alibaba - Transparent supplier directories with ratings and verified status
  • Trade shows - Guangzhou, Shenzhen, Yiwu - real factories showing real products
  • Visible supply chains - You can trace sub-suppliers, component sources, material markets

Outside China?

None of that exists.

Vietnam: No transparent B2B platforms

There's no "Vietnam 1688."

Google "Vietnam factory" and you get:

  • Trading companies in Ho Chi Minh City
  • Sales reps claiming to "represent factories"
  • Websites with stock photos
  • Email addresses that bounce

You can't verify who's real.

You can't see transaction history.

You can't compare factories side-by-side.

You're flying blind.

India: Middlemen pretending to be manufacturers

India has exporters. Lots of them.

But finding the actual factory?

You'll talk to:

  • Export houses (trading companies)
  • Agents who "work with multiple units"
  • Representatives who've never set foot in the production facility
  • Sales offices in Mumbai managing production in Gujarat they can't supervise

The real manufacturer is three layers deep.

And they don't deal with foreigners directly because they don't know how.

Indonesia: Even less infrastructure

Indonesia is the wild west.

You'll find:

  • Brand new "factories" that are actually assembly workshops
  • Suppliers who appeared in 2024 with no track record
  • Websites that promise everything and deliver nothing
  • Language barriers (Bahasa + regional dialects) that make verification impossible

There's no rating system. No business verification. No transparency.

Just trust and hope.

The Tactics That Work in China Don't Work Elsewhere

Here's what importers don't understand:

The playbook you learned in China is useless in Vietnam, India, and Indonesia.

In China: Push hard, they push back (and deliver)

Chinese factories respond to:

  • Aggressive negotiation
  • Tight deadlines
  • Penalty clauses
  • Constant pressure

They're used to it. They expect it. They built their entire service model around it.

That's why China is expensive - but reliable.

In Vietnam: Push hard, they go silent

Vietnamese suppliers value harmony over confrontation.

If you push too hard:

  • They say "yes" but mean "no"
  • They stop responding to emails
  • They miss deadlines without warning
  • They ghost you when problems emerge

Your China tactics destroy the relationship before production starts.

In India: Push hard, they negotiate forever

Indian suppliers expect flexibility.

What you think is "final terms" is just the opening position.

If you demand rigid contract terms:

  • They'll agree, then renegotiate at every milestone
  • "It's done" means "it's started"
  • Problems get softened, not reported directly
  • Timeline commitments are aspirational

Your China-style contracts become endless negotiation cycles.

In Indonesia: Push hard, they smile and fail

Indonesian culture avoids direct confrontation.

If you push too hard:

  • They'll say "we'll try" (not a commitment)
  • Problems get delayed, not escalated
  • They'll agree to impossible terms to avoid conflict
  • Then quietly fail to deliver

Your China enforcement tactics look aggressive and destroy trust.

The Real Problem: Service Gap

Here's the insight most importers miss:

Chinese factories are expensive because they know how to service foreigners.

They've spent 30 years learning:

  • How to communicate in English
  • How to manage international timelines
  • How to structure pricing that makes sense to Western buyers
  • How to handle QC, shipping, documentation smoothly
  • How to add value through problem-solving

That service capability costs money.

But it saves you time, stress, and mistakes.

Vietnam/India/Indonesia factories are cheaper - but not equipped

When you find a real factory in Vietnam, India, or Indonesia:

The apples-to-apples price is often cheaper than China.

But they don't know how to:

  • Add enough profit margin sustainably
  • Communicate clearly with international buyers
  • Structure terms that work for both sides
  • Handle problems proactively
  • Service you the way Chinese factories do

So one of two things happens:

Option 1: You work through middlemen

Middlemen know how to talk to foreigners.

They add 15-30% markup for "service."

You end up paying MORE than China - even though the factory price is cheaper.

Option 2: You work direct with factories

You get the cheap price.

But you spend months:

  • Teaching them how to work with you
  • Fixing communication breakdowns
  • Managing cultural misunderstandings
  • Dealing with quality issues they don't know how to solve
  • Enforcing terms they don't understand

You save money on price, lose money on time and mistakes.

Why "Just Move to Vietnam" Doesn't Work

Let's say you decide: "Okay, I'll move to Vietnam."

Here's what actually happens:

Week 1-4: Sourcing

You search online. Everything looks like a factory. Nothing is verifiable.

You contact 20 suppliers. 15 are trading companies. 3 are real but overbooked. 2 respond.

Week 5-8: Negotiation

They say yes to everything. Price looks great. Timeline looks tight but doable.

You think: "This is going well."

Week 9-12: Pre-production

Samples are late. Communication slows. "Yes, we can do this" becomes "maybe we have a problem."

You're 3 months in and realizing: they can't actually deliver what they promised.

Week 13-16: Crisis

Production is behind. Quality is inconsistent. They're not answering tough questions.

You fly to Vietnam. The "factory" is smaller than they showed in photos. Equipment is limited. They're clearly not equipped for your volume.

Week 17-20: Restart

You're back to searching. 5 months burned. Deposit gone or tied up in negotiation.

This is why importers give up and go back to China.

What You Actually Need (That Doesn't Exist Publicly)

To make Vietnam, India, or Indonesia work, you need:

1) Real factory identification

Not platforms. Not Google.

Physical verification:

  • Business license check
  • On-site visit
  • Capacity verification
  • Equipment inspection
  • Workforce validation

2) Cultural bridge

Someone who understands:

  • How the factory actually operates
  • What their "yes" really means
  • How to enforce without destroying relationships
  • When to push and when to wait

3) Service layer

Teaching the factory how to work with you:

  • Communication protocols
  • Timeline management
  • Quality standards
  • Documentation requirements
  • Problem escalation

4) Legal framework adapted to local jurisdiction

Not copy-paste China contracts.

Contracts that:

  • Work in Vietnamese/Indian/Indonesian courts
  • Match local enforcement mechanisms
  • Use penalties that actually matter locally
  • Protect you without making the factory walk away

5) Local enforcement presence

Someone in their city who can:

  • Show up when problems emerge
  • File locally if needed
  • Apply pressure that actually works
  • Verify production in real-time

This infrastructure doesn't exist on Alibaba.

You either build it yourself (and spend 12-18 months learning), or you work with someone who already has it.

How We Actually Operate

We're not a sourcing platform.

We're boots on the ground in each hub.

We find the real factories (not middlemen)

  • Physical verification in China, Vietnam, India, Indonesia
  • Business license checks
  • Capacity verification
  • Equipment inspection
  • We've spent years building direct factory networks - not databases, relationships

We bridge the service gap

We teach factories how to work with international buyers:

  • Communication standards
  • Timeline commitments
  • Quality expectations
  • Documentation requirements

We make direct relationships work - without middlemen markup.

We adapt tactics to local culture

What works in China doesn't work in Vietnam.

We operate differently in each hub:

  • Vietnam: Relationship-first, enforce through presence
  • India: Flexibility with accountability checkpoints
  • Indonesia: Consensus-building with clear milestones
  • China: Direct enforcement with penalty leverage

We build legal framework per jurisdiction

Not copy-paste contracts.

  • China: Chinese law, RMB penalties, local courts
  • Vietnam: Vietnamese jurisdiction, relationship-based escalation
  • India: Indian Contract Act, state-specific enforcement
  • Indonesia: Indonesian law, personal accountability

We're physically present when problems emerge

Not coordinating from Hong Kong or Singapore.

When production breaks:

  • We're in the factory same-day
  • We verify the problem in person
  • We enforce locally
  • We don't rely on phone calls and emails

We connect you directly to factories

No middlemen.

No trading companies.

Direct contracts. Direct payment. Direct accountability.

And we make sure the factory can actually service you - or we build that capability before production starts.

What This Means for Importers in 2026

Geopolitical risk isn't going away.

Taiwan tensions. Trade restrictions. Supply chain weaponization.

You need a Plan B.

But "move to Vietnam" without infrastructure is gambling.

"Try India" without local presence is hope.

"Explore Indonesia" without cultural understanding is chaos.

What you actually need:

Multi-country infrastructure that lets you operate outside China without learning everything from scratch in each location.

That means:

  • Real factory networks (not platforms)
  • Cultural operators (not translators)
  • Local legal framework (not copy-paste contracts)
  • Physical presence (not remote management)
  • Service capability (not just cheap prices)

And you need it before geopolitical events force your hand.

Because when everyone's scrambling at once:

  • Real factories get picky
  • Middlemen raise prices
  • You're negotiating from desperation
  • Mistakes cost 6-12 months

Frequently Asked Questions

Q: Why can't I just use Alibaba for Vietnam or India suppliers?

Alibaba Vietnam/India listings are mostly trading companies, not factories. There's no verification system like China's. You can't check business licenses, transaction history, or actual capacity. It's a lead generation platform, not a factory verification system.

Q: What if I hire a local agent in Vietnam/India?

Most "local agents" are sales reps or small trading companies. They don't have legal infrastructure, enforcement capability, or multi-hub experience. When problems emerge, they're coordinating remotely just like you would be - they just speak the language.

Q: Isn't it risky to work directly with factories that aren't set up for international buyers?

Yes - if you do it alone. That's why we build the service layer first. We teach factories how to work with international buyers, install communication protocols, set up quality systems, and create enforcement mechanisms before production starts.

Q: How long does it take to set up production in Vietnam/India vs China?

China: 2-3 months if you know what you're doing. Vietnam/India/Indonesia without infrastructure: 6-12 months of trial and error. With our boots-on-the-ground infrastructure: 3-4 months because we've already built the factory relationships and service capability.

Q: What if geopolitical issues hit Vietnam or India next?

That's why we operate in multiple hubs. If Vietnam gets hit with trade restrictions or India faces sanctions, we're not starting from zero elsewhere. We already have legal framework, factory relationships, and local teams in China, Vietnam, India, and Indonesia.