A Few Benefits of Manufacturing in China for Your Business



    When you want to expand your business and optimize production processes, then you can certainly not overlook the benefits of manufacturing in China. Over the decade, the Chinese manufacturing industry has experienced tremendous growth, and consolidated its position as a “Factory of the world.”

    This has surely attracted businesses from all over the world to outsource their manufacturing operations in China. One of the major reasons for manufacturing in China is cost benefits. No other country can offer skilled labour at the most competitive costs, as a result, businesses can significantly reduce their production expenses.

    No wonder, today you can find a “Made in China” tag on almost every product whether it is industrial goods, clothing items, toys, or furniture items.

    A few statistics can validate the above statement:

    • In 2002, little more than 80 million employees were working in the manufacturing sector in China.
    • Now by 2009, that number had increased to nearly 100 million.

    On the other hand, in the USA, the same figures have steadily declined and in 2009 only 15 million employees were engaged in the manufacturing sector.

    Let us, therefore, list out a few benefits of manufacturing in China in this short article.

    1. Lower manufacturing costs

    You can surely manufacture your goods at a much lower cost in China instead of manufacturing in your own country.

    1. Cheaper labour

    China is one of the most populated countries in the world where a large number of skilled labours is available at an unbelievable cost.

    1. Higher production capacity

    Over the years China has increased their production capacity tremendously and the Chinese government has also offered a lot of incentives.

    1. Can expand and diversify quickly

    Because of the above reasons, China can very quickly increase their production and go for diversification.

    1. Quick lead time

    If you regularly order for manufacturing your product and coordinate with Chinese manufacturers well then you can drastically reduce the lead time.

    1. Production efficiency

    As the labour cost is very low in China and hence complications like defects in manufacturing cannot lower the efficiency of the operation.

    1. Capability for product duplication

    The product duplication capabilities in China are far superior, and they are able to copy any products much faster with better accuracy.

    However, if you are planning to outsource your products to get the benefits of manufacturing in China it is necessary to visit the Chinese factory due to following reasons.

    1. To confirm that you are dealing with a manufacturer and not a trader

    Often you may come across a trader rather than a manufacturer while discussing remotely.

    1. To understand the manufacturing process

    It is important to understand their manufacturing process with your own eyes before you decide to outsource your products.

    1. To build a good relation

    In China building a good relationship is more important to do business successfully.

    1. To negotiate a better price

    With face-to-face discussions with the manufacturer, you can negotiate better.

    1. To have better clarity about quality

    Both you and your Chinese manufacturer can remain on the same page by discussing quality parameters.

    1. To know the competition in the market

    You can know about other manufacturers who are competing with your supplier.

    1. To get a flavour of Chinese working culture

    Personal visits to Chinese factories will offer you an opportunity to understand their work culture.


    Lower manufacturing costs are one of the major benefits of manufacturing in China. Several companies in China can manufacture your products and hence by visiting China, you can not only understand the Chinese manufacturing process, but also understand the competition in this business. This can offer you an opportunity to further negotiate with your Chinese counterpart and improve your bottom line.

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