24 January 2021

Why manufacturing in China gives your business the competitive advantage it needs

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China has grown to become a significant economic power in the last few decades. Since the government allowed international trade, China embraced the global market. The country has turned into a giant in terms of both purchasing power and manufacturing. All this due to a combination of state regulations and access to the largest workforce in the world. Chinese manufacturing is a practice that many international businesses have recognized as essential to their competitive advantage. In today's global economy, being competitive is one of the most crucial perspectives for every enterprise. As domestic prices rise, there is a growing need for affordable overseas manufacturing.

The supportive politics undertaken by the government has helped the development of manufacturing. Providing subsidies, incentives, and proper infrastructure encouraged local factories in China to compete with successful brand names in the global market. That's why it is not surprising that many of the most prominent companies in the world are manufacturing in China.

Here are some of the benefits you will enjoy:

You will have low production costs with higher outputs.

Yes, we all know this one. China offers inexpensive raw materials and has cheap labor in comparison with many countries of the world. Also, its factories ease mass production that brings down the cost considerably. So, you can expand the range of the products you offer while increasing your sales. Yet, the mainland does not only produce low-end goods. There has been growing efforts toward high-end technologically advanced manufacturing.

Expansion opportunities.

If you produce in China, it is easy to offer those products to the local market. You do not have to pay high shipping costs since your product is already there. So, companies can expand their market share both overseas and on the mainland. Moreover, China has a strategic location from its proximity to several growing markets such as India, Thailand or South Korea. So, it offers access to its domestic market and other massive markets as well. Since it is the world's most populated country, it provides you with fast access to enormous markets. Hence, it increases the sale of their products while enabling them to reap higher profits.

Technological advancements.

The Chinese government has enforced some supportive measures to encourage research, innovation, and creativity. That is why China has some of the most sophisticated technologies in the world. It can be a fundamental advantage for companies that want to manufacture in this country. If you have a high-end product in mind, the Chinese will probably have the proper technological tools to produce it.

Extensive Knowledge.

China has built the proper infrastructure for the manufacturing industry. Whole cities were designed to bring optimal service and efficiency when it comes to goods production. For instance, Shenzhen city is known for offering electronic manufacturing services. With that foundation, we have seen China become the factory of the world.

Better service.

Chinese manufacturers are more likely to give a better service from the outset as a small company. They are more willing to work with these companies than domestic manufactures. However, since they produce high quantities in a shorter time, they require a minimum order quantity (MOQ). Higher MOQ lowers the cost per unit but considering sustaining your business manufacturing elsewhere if the number is high for your company.

Shanghai (under establishment)


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G4 R & D Building, Qingdao Software Park, No. 6 Huangtai Road, Shibei District, Qingdao, China
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G4 R & D Building, Qingdao Software Park, No. 6 Huangtai Road, Shibei District, Qingdao, China

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