The Impact of Manufacturing & Sourcing Industry on China’s Economy

Boosted by government infrastructure spending, a resilient property market and unexpected strength in exports, China’s manufacturing and industrial firms helped the economy post better-than-expected growth. What has enabled the transformation to happen so quickly is a multitude of factors, including cutting of overcapacity, implementation of supply-side structural reforms, industry integration and consolidation, introduction of environmental policies, product quality upgrades, improvements to production efficiency and easy sourcing of the Chinese goods.

Growth of traditional manufacturers is picking up, with emerging sectors like robots, NEVs and the sharing economy doing well, said Ning Jizhe, head of the National Bureau of Statistics (NBS). China is determined to roll out more policies to optimize the investment environment and tap investment potential of businesses in a bid to support the development of advanced manufacturing. China’s official services survey showed robust growth in the manufacturing sector.

In the view of the sourcing experts, a foreign company needs to learn a set of basic capabilities while importing Chinese goods such as-

• Ensuring quality and control
• Assessing packing procedures
• Evaluating a supplier’s ability to meet requirements
• Testing preproduction prototypes or samples
• Logistics activities such as satisfying customs regulations and arranging shipments

How you can assess a Chinese supplier-

While searching the supplier’s company name, you will find the profiles they created on several B2B directories, including Alibaba, Global Sources, Hong Kong Trade Development Council, and many more. If your supplier is unable to provide you a unique company registration number, it’s risky to continue dealing with them. To verify the registration number, you need to visit their local administrative government website or contact their local Bureau of Industry Commerce. Open Google or Bing and search “[company name] + scam”, “[company name] + dishonest”, and a few variations. Importers who got a bad experience often try to leave a trace about it on the web.

The sourcing of different types of made in China products has grown by leaps and bounds and heavily modernize itself in order to satisfy the demands of the clients of the more-developed countries. China’s leadership is keenly focusing on revitalising manufacturing industry in order to remove red tapes from it. In each and every five year plan, it the manufacturing and sourcing industry that get top-priority. Consumer goods, technology, chemicals and utility companies have enjoyed rising operating profits.