A maximum number of products that we use in our everyday life are manufactured in China. 70% of the world’s mobile phones, 80% of it’s air-conditioners and 60% of its shoes are produced in China and the exporters from all over the world source products from Chinese wholesale suppliers. A lot of businesses that used to be US based or other countries have actually closed facilities and re-opened them in China. Although the minimum wages have almost doubled in mainland China over the years, still this country has comparatively lower labor cost.
The cost of living in China is relatively low this what makes low wages manageable for the common manufacturing workers and the Chinese companies are thriving by producing goods for the rest of the world. Apart from the assistance provided by the government to boost the manufacturing industry of the country, over the years China has developed friendly sourcing community that is renowned for providing valuable assistance to the foreign businesses interested in China sourcing. No matter if you want to import a large chunk of products or a small number of goods, you are surely going to find a reliable, dependable and friendly community of Chinese sourcing agents.
The cost differential between manufacturing domestically and manufacturing in China is significant. Domestic manufacturers have higher overhead with steep training costs and high turnover. China’s affordability makes overseas manufacturing ideal for the common business. The concentration of knowledge, skills, equipment and suppliers that are the key to innovative manufacturing are present in China.
Countries with relatively stable political and economic environments, modern infrastructure, and a compatible legal system are ideal for sourcing products from China. While strengthening the manufacturing sector domestically, Chinese government prepared them for foreign competition. Businesses are encouraged to become export-oriented through quotas and preferential treatment.