You’ve probably seen the unbelievable scenes coming out of China. Protestors have taken to the streets across all major cities in China after growing frustrations over the government’s zero-covid policy.

The protests risk causing supply chain issues for Amazon sellers who source from China.

Steven Simonson is joining me today to help us understand what is happening and how it might impact Amazon sellers, including sourcing from China.

He has extensive knowledge about global trade, specifically with issues affecting SE Asia and China. I don’t know anyone as knowledgeable about China as Steve, and I asked him to join us today to break down what is happening in China.

Steve’s companies perennially rank on the Inc. 500 fastest-growing company list and the Internet Retailer Top 500. Steve was also a finalist in the Ernst and Young Entrepreneur of the Year Award. He manages several companies from his holding company He is the founder of the ecommerce association/cooperative

China is a hot mess right now. It’s time to start diversifying your supply chain to other countries, whether India, Malaysia, Vietnam, Mexico, or even here in the United States.”  

Jason Boyce

Almost every Amazon seller is touched in one way or another by China. We should all be worried about what is happening over there and how it might impact our businesses.

But even before these recent events, there was already a feeling that we had reached peak China sourcing. The reasons that had made the country so attractive as the world’s factory are quickly vanishing, and it’s time Amazon sellers and other entrepreneurs looked elsewhere.

One of these is the population and access to cheap labor. More and more people are choosing not to work in factories and looking for white-collar jobs. This, coupled with an aging population, means labor is less attractive than 10 years ago.

The Chinese are kind of terminally in a catastrophic freefall in terms of demographics. It’s estimated that between 2050 and 2060, China will have half the population it does today.Steven Simonson

China is a Mess; Start Diversifying NOW!

For 2023 and beyond, it’s time to start diversifying your sourcing away from China. Of course, this won’t happen overnight, and other countries, too, have supply chain issues. But as a prudent entrepreneur, you better start actively looking and weighing your options.

The current mess is only exacerbating a situation that was already bad. The reality is that peak China is over, and it’s only downhill from here.

Some viable alternatives include countries such as India, Malaysia, Vietnam, Columbia, Mexico, and even here in the United States.

Steven and I look at how different industries in each of these countries excel and how to gradually start diversifying to them.

Some Additional Resources…

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