Why China

Today, China has become the world’s second largest trading nation behind the US-leading the first in exports and coming in second for imports (ECI). Since its accession into WTO in 2001, China’s share in global trade has doubled accounting for 10.38% of the world’s merchandise trade exports. For many enterprises around the world, China is rapidly becoming their top bilateral trade partner.

 

Global Economic Pattern

The forecast global economy growth in 2017 is 3.2%, while it is predicted to be 6.2% in China, 2.1% in US, 1.4% in EU and 0.7% in Japan.

Meanwhile, global core economy entity gradually recovers and steady grow.

Prevail of anti-globalization casuing assets protection by countries.

Lack of effective economy stimulation plicy.

The government in global core economy entity is facing trasition, which adding uncertainty into world pattern.

 

Trading capability

In the past three years, China’s export trade kept a growth for over 6%. The export value of goods hit a new record of $2.21 trillion in 2013 resulting the country overtook the United States as the world’s largest trading nation.

Although recently, China has become the focus of many boardroom discussions. However, it will remain as the center of world’s factory for the following reasons:


 

1. Access to cutting-edge technology         

China has over 30 years’ experience in producing goods for Western markets. Rather than produce cheap products only, China put heavy investment in developing technology in the last few years, and gained an edge over other emerging countries.

 

2. Manufacturing ecosystems

This is the main determining factor on where a product can be made. A manufacturing ecosystem is the network of suppliers that provide parts to the assembly factory and are essential for efficient and low cost production.

 

3. Strategic location

Over the last 30 years China has built an enormous infrastructure, such as coast line, river deltas and number of natural deep sea ports to efficiently handle the mega quantity of goods produced. In fact 7 of the world’s busiest deep sea ports are in China.

 

4. Pool of labor

The frighteningly large population in China means there is an army of workers to fill the factories with moderate cost. There may be alternative production destinations with lower cost, but the total number of population will limit the production ability.

 

5. Working conditions

To make the most of the growing interest in their country as a manufacturing hub, many Chinese suppliers begin to improve the general standard of working conditions. It is rarely to find a factory exporting to Western countries that would be considered a “sweat shop”.



Dates & Times: 23rd-25th July 2020

Date Time
23rd Thursday 9am-5pm
24th Friday 9am-5pm
25th Saturday 9am-3pm

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