| Publication |
2010.
|
| Summary/Abstract |
Grey channels, which are neither clearly legal nor clearly illegal, are commonly relied on by international firms as a means of accessing Chinese markets. Firms report that they use grey channels to avoid China's high import tariffs, difficult regulatory hurdles, and inefficient distribution networks. For food products, grey channels involve risks such as unreliability in delivery and inadequate cool chain management, and some authors anticipate that the use of grey channels for such products will diminish when China implements WTO standards. To explore opportunities that may exist in a free trade environment, this article analyzes what a grey channel is, why people use it, how it operates, and what advantages and disadvantages it has in comparison with other channels. This leads to a discussion on the future of grey channels. The analysis is based on in-depth interviews with firms involved in the food trade in China and Hong Kong.
|