It may surprise you that much of the news about China we hear in the US actually has something to do with China sourcing even if it doesn’t appear that way on the surface. Many wholesale manufacturers in China are in the news today because of troubles that have arisen as the result of US companies sourcing goods and services from unregulated factories and manufacturers in China.

Most recently we’ve heard horror stories of tainted baby formula being imported to this country. These stories come on the heels of news about pet food from China that sickened and even killed cats and dogs, and frozen dinners from China that made people ill. Those are just some of the current events that shed light on the dark side of sourcing, or using Chinese manufacturers for wholesale goods and services.

But not all sourcing news stories from China are negative. Just recently a major company that manufactures medical supplies and vaccines has signed contracts to provide much-needed vaccines for the dreaded H1N1 “swine flu” virus. Chinese Sinovac Biotech has teamed up with North Korea-based Boryung Pharmaceuticals, which plans to market the anti-virus to the Korean government.

Television manufacturer LG has just announced plans for a new factory in Guangzhou, where it will manufacture TVs and then export them to the US and around the world. This is a prime example of the good side of sourcing in China. The new factory will manufacture LG’s eighth generation, 50-inch LCD flat screen television. This will be the first full-service factory in China for the company, though it sources with two other Chinese factories for the flat screen components for some of their other TVs and computer monitors.