Which are the most important risks of sourcing in China that first time companies need to be most careful about?
From your experience and point of view, which are the most important risks that new companies that are looking to source from China for the first time need to be aware of, be careful and prepare for (i.e. the sourcing risks that have the most impact in the company's results)?

At the end of the questionnare, please fill in 14th optional question with the main criteria (s) you used to define importance of the risks.

For example, Risk 1. extra costs can be considered very important, if you are using financial impact as the main criteria to assign importance.

Thank you.
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1. Extras costs that arose during production *
Not Important
Very important
2.Supplier failed to meet quality requirements/standards, due to lack of capabilities *
Not imporant
Very important
3. Company's Staff start to be unmotived or fearful of layoffs, because of outsourcing activities *
Not important
Very important
4. Bad contract terms that led to future problems and difficulties *
Not important
Very important
5. Entering into a long-term contract with suppliers that diminish the company's flexibility *
Not
Very important
6. Leakage of confidential information due to openness and information exchange *
Not important
Very important
7. Transferring control of resources to supplier, which become hard to reverse back when relationship ceases *
Not important
Very important
8. Changes in market conditions make sourcing not benefitial *
Not important
Very important
9. Risk associated with social stability, and social, cultural language, and customs differences between organization and vendor/supplier *
Not important
Very important
10. Chinese government laws and regulations that are to comply with *
Not important
Very important
11. Quality fade: loss of product quality over time *
Not important
Very important
12. Fraud: the sourced supplier does not deliver or does not exist *
Not important
Very important
13. Constant delays on the delivery time *
Not important
Very important
14. Criteria used to base your answers
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