From Kalamazoo to China. Doing Business in China by buying a company.

Home | China Law Blog | Gibson Guitars — From Kalamazoo To China And Beyond Table of Contents Toggle The Hollowing Out of American Manufacturing Kalamazoo, Michigan Writ Large I grew up in Kalamazoo, Michigan, two houses down from the Sweitzers. Mr. Sweitzer worked at the local Gibson Guitar factory, and he would arrive home from work each day at around 3:50 p.m., with dinner expected on the table by 4:00 p.m. Near as I could tell, it always was. I was always envious of the extra post-dinner playtime this early eating allowed. Then one day, the Sweitzers started eating at 5:00 p.m., and I soon learned why: Gibson had left its Kalamazoo birthplace in America’s industrial heartland and moved to Memphis, Tennessee—presumably to avoid union pressures and reduce labor costs. A part of my town went with it. Now, I’ve learned that Gibson will soon return to an industrial heartland, but this time, it’s in China’s Liaoning Province. Gibson has acquired China’s third-largest piano maker, the state-owned Dongbei Piano Group. Our international lawyers are increasingly seeing U.S. and European companies entering the China market by purchasing existing Chinese factories and operations. The newly formed entity will be called Baldwin-Dongbei Piano & Musical Instruments Company, leveraging the Baldwin piano brand already owned by Gibson. Gibson also produces around 150,000 guitars a year at a factory in Qingdao and operates a marketing office in Shanghai. Its more affordable Epiphone line is manufactured in southern Guangdong Province. Gibson’s Global Expansion and the Future of U.S. Manufacturing There’s little doubt that Gibson’s expansion into China will further reduce its labor costs. And just as certainly, this location will likely not be its final destination. I wonder what time the Dongbei workers will get home for dinner. And I wonder when Gibson will move that Dongbei facility to Vietnam or Thailand. Check Out Our China Law Services Share Twitter Facebook LinkedIn E-mail Comment Dan Harris Dan Harris is a founding member of Harris Sliwoski, an international law firm where he mostly represents companies doing business in emerging market countries. Most of his time is spent helping American and European companies navigate foreign countries by working with the international lawyers at his firm in setting up companies overseas (WFOEs, Subsidiaries, Rep Offices and Joint Ventures), drafting international contracts, protecting IP, and overseeing M&A transactions. In addition, Dan writes and speaks extensively on international law, with a focus on protecting foreign businesses in their overseas operations. He is also a prolific and widely-followed blogger, writing as the co-author of the award-winning China Law Blog. Harris Sliwoski Attorney Read more posts [email protected] Read More International Manufacturing Learn more about our International Manufacturing Law Practice Related Posts September 15, 2026 Your AI-Drafted China Contract Says It Needs a Lawyer. Listen to It. September 11, 2026 Forensic Accountants in China Business Litigation: How True Numbers Can Tell the Wrong Story September 4, 2026 China NNN Agreement or Trademark Registration? You Usually Need Both September 1, 2026 AI Didn't Replace Lawyers. It Gave Us the 48-Page Contract. August 27, 2026 Do I Need a China NNN Agreement or a China Manufacturing Agreement? Usually Both. August 26, 2026 China’s New Overseas Investment Rules: Can Your Chinese Investor Actually Get the Money Out? August 24, 2026 International IP Protection for Startups: What to Protect and Where August 19, 2026 The Documents Are the International Deal August 19, 2026 China Supplier Fraud in Yiwu: Why We Recommended the Police, Not a Lawsuit August 17, 2026 China Trademark Registration: Why U.S. Companies Need More Than a Filing Agent August 10, 2026 Buying Expensive Equipment from China: Seven Questions to Answer Before You Pay August 7, 2026 DDP Shipping Risks: What Boise Cascade’s Guilty Plea Means for U.S. Buyers August 6, 2026 Protecting Your Artwork Internationally: What Artists Need to Do Before the Work Travels August 5, 2026 Your China Employee Signed the Vacation Policy. You Can Still Lose. July 29, 2026 The RedNote Contract Lesson for Companies Doing Business in China Leave a comment Cancel reply