SourceMost of the stickers, tags, and labels on a wide range of products claimed that they were made in China. However, for years, the rumors have been around. Due to this, it is understandable why many Western consumers would ask, "Why is everything made in China?"
One answer to this question could be that the Chinese believe in sharing. This is the reason why they are so good at making low-priced things made in China as well as high-priced things made in America. If you go to any of the Chinese markets, you'll find that they sell things made cheaply. The difference between them and the more expensive things sold in the West is that, in the West, consumers get what they pay for. Chinese manufacturers only charge a small percentage of what the final product costs. But because of their dedication to giving customers what they pay for, Chinese made goods command a very high price made in China.
In order to make their goods cost as low as possible, Chinese manufacturers rely on two main sources of demand. The first of these sources of demand is the local Chinese market. They rely heavily on their contacts with suppliers in the local area and on wholesalers who can provide a regular supply of their merchandise. Chinese suppliers of foreign made products usually do not have any direct contact with the local Chinese market.
The second type of demand that the Chinese manufacturer uses is the black market. There is a huge trade in counterfeit and fake Chinese products, most of which are made in China and exported to the West. This trade is a byproduct of the booming middle class in China who want to save money by manufacturing things made in China and selling them in the local markets where they have a high sale price. Some counterfeit products are also made in Thailand and the U.S.A., which lead to the problem of counterfeit Chinese goods.
If you have a look on the internet or in the yellow pages, there are many firms dealing in things made in China but all of them have something in common. They are all based in either Hong Kong or the Pearl River Delta region. Even though China has opened up to the world, it is still very much a developing country and the number of companies and factories that make things in China is constantly declining. The reason why there are so few Chinese manufacturers is because the world economy is based largely on exports and importing. China can only hope to grow its exports if it increases its manufacturing capacity and this means that there is no room in the current scenario for more manufacturing capacity from anywhere else in the world.
There are a number of possible routes that can be used to increase the number of Chinese manufacturers making things in China but most of them involve increasing the trade barriers. By creating higher tariffs on the importation and exportation of certain goods to the United States and other European Union member states, China will become increasingly isolated. With increased tariffs on imports and exports China will not be able to invest in advanced machinery that it needs in order to produce its products. This will lead to a reduction in the number of things made in China and most of the manufacturing base will move to places such as India and Pakistan. This will force those countries to hire more workers from outside China and reduce their employment rates in factories located in China and India.
Therefore, one of the ways to increase the amount of high-quality goods manufactured in China is to lower the barriers to entry. The easiest way to do that is to create a high-quality manufacturing unit in a country that is not on the country's neighbor's side. For example, in Canada there are no tariffs on importing merchandise from the United States and because of that high-quality American Made goods can be brought into Canada and exported to the United States under these circumstances. The same holds true for Mexico with regard to exporting goods to the United States under these scenarios.
By establishing an industrial unit in a non-Chinese province or state in South America or Asia, you can save on manufacturing costs and increase your overall profit margin as well. China offers excellent conditions to its factory workers and has a low cost of living as compared to many other countries in the world. This combination allows Chinese manufacturers to be less reliant on labor forces that are recruited from developing nations with low pay and no social security. The combination of these two factors will lead to a higher volume of goods manufactured in China products list.
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