As is known to all, in the past 40 years, China has made remarkable achievements in its industry. With the establishment and improvement of a modern industrial system with complete categories, China has long been the world’s largest manufacturing country.
Many business owners and start-ups may wonder:
Advantages of manufacturing in China？ why is it cheaper to manufacture in China?
because there are so many choices: India, for example, and southeast Asian countries like Vietnam and Thailand.
But why do so many companies still manufacture products in China?
Today’s topic is the advantages of manufacturing in China？
There are six advantages of manufacturing in china
China’s huge population base
This is mainly because China has a large population, about the same as the rest of the developed world put together, but it has not yet developed to the point where services account for a large proportion. Because China has a large population and a large number of employed people, labor is cheaper than in other countries. Foreign enterprises can take advantage of China’s labor force by putting their products into production in China, which not only increases the employment rate of Chinese people but also saves a lot of costs in the production of products. Therefore, made in China is so popular.
Cheap raw materials
There are three china manufacturing products
China itself is capable of producing most of the raw materials.
As the demand is large, the raw materials are cheap.
Arrange raw materials effectively.
A guy on Quora mentions that” If you import a lot of raw Material from broad, it will cost a lot of money, but China has a very special weapon: infrastructure. Since the demand for products (mostly commodities) drives demand for raw material, that drives demand for infrastructure to route these raw materials effectively and cheaply. Unlike India, China has that infrastructure and system, and so raw material can flow in large batches and routed effectively to minimize cost.”— even sa
The extensive network of infrastructure, ports, roads, airports, rail, huge factories
It is also true that in the eyes of foreign companies, Chinese products in almost any field can be produced. China’s development in the production field in recent years is very comprehensive, including raw materials, production, logistics, trade, and other supporting industrial chains, which can be said to be very complete. Therefore, foreign enterprises can find a complete industrial chain in a very short time when they come to China, so the reputation of Chinese manufacturing is also very good.
Cheap labor cost with better productivity than some other developing countries
When it comes to cheap Labour, it is much cheaper in south-east Asia than in China. But why is China so popular? This involves the quality of the product. The reason why the labor force in many countries in southeast Asia is cheap is mainly that the economic level of these countries is not high, so no matter the production technology or technological level is inferior to China. To ensure the quality of their products, foreign companies naturally prefer to choose China.
Economies of scale and the network effect of operating in a global manufacturing hub
In terms of product production efficiency, China is hard to compare with many other countries. According to relevant data, domestic product manufacturing efficiency is the highest in the world. On the one hand, this is because China’s factories have more comprehensive equipment and a high level of science and technology, which can shorten the production cycle of products. On the other hand, it is because of the high quality of Chinese workers, strong learning ability, and developed transportation, which also speeds up the operation of all aspects of product production.
Chinese government’s export policy
In order to export more products to other parts of the world, the Chinese government has only a VAT system and only taxes value-added services. As a result, production costs are much cheaper than in other countries. On the other hand, the United States and some other developed countries do not impose low import tariffs on Chinese goods.
Conclusion:
You may have found some conversations on Google about countries like India and Vietnam replacing China as the world’s workshop.
But these countries lack infrastructure. As a result, their costs will be much higher.
In a word, made in China has become more and more popular in the world now, not only for products made in China but also for made in China itself.
It is believed that with the continuous development of Chinese manufacturing and science and technology, made-in-china manufactures will become more popular in the future.