Sourcing products in different Asian countries has become a viable opportunity to most companies in all different industries. China, for example, is the fastest-growing economy in the world, with a tremendous trade surplus and a large foreign exchange reserve. China continues to reform its economy, making it the go-to-destination to expand your business’ portfolio.
China’s supplier base is incredibly extensive, while the country imports a portion of raw materials from other countries, it still does most of assembly work for consumer products. You can find sourcing networks from almost any industry in China, from apparel, textiles, electronics, home decor, toys, car parts and much more. Also, over the years, many of China’s factories have improved tremendously with manufacturing capabilities, efficiency, management sophistication and customer service, making it more appealing and reliable for foreign clients.
On the other hand, due to its fast growth, the economy is imbalanced and depends on exports to boost its growth. It’s important to take into consideration that, unfortunately, with the number of factories and businesses operating in China, the country is being highly affected with environmental degradation and devastating labor conditions. Plus, China’s population is so dependable of this market that if there are job losses in the export sector, it will increase a social instability issue.
Compared to other countries, China has a number of difficulties for foreign investors wishing to do business directly there, but it is the most favorable purchasing destination compared to its neighbors, due to its huge supply of low cost labor and its fast-growing economy. Bureaucracy and legal structures are also major concerns to China’s foreign investment attraction. That’s why you need a partner who knows all the “ins and outs” of China, to guide you in this aspect of your business.
From a business point of view, China is one of the best options to source due to its economic growth, to its increase of domestic consumption, to its ongoing urbanization, its new cities, its large working force and the development of more Chinese global firms that will keep helping, supporting, manufacturing and sourcing for other international companies coming to invest in China.