Over the past few decades, China has grown into a major economic power. Many changes have occurred in the country since the government decided to allow international trade and embrace global markets. China's economic wheels are turning fast. Today, China is a huge country not only in terms of manufacturing but also in terms of purchasing power. China's large population plays a vital role in both aspects. The huge labor force means relatively cheap wages and a huge product sales market.
Therefore, it is not surprising that even the world's largest and most prestigious brands have shifted production to Chinese factories for a long time. They reap the benefits of low production costs, and in many cases. Direct market access for Asian consumers.
In 2014, China's outsourcing market grew by 30%, and companies in many other countries also moved their headquarters to China to conduct business. Compared with many neighboring countries, China has done a better job of retaining its position in the low-end industry sector. The government has given great support to this, introducing subsidies, incentives and good infrastructure to keep local companies in a highly competitive global market.
The main reason to consider manufacturing in China is almost always lower manufacturing costs. Especially for mass market products, lower production costs means you have enough supply to maintain market competitiveness. Some companies also choose to outsource to manufacturing plants in China to streamline distribution to other countries. If the manufacturing process is handled properly elsewhere, your company can focus its resources on the development of future products.
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