Thanks for visiting our website. Before you actually get your business started, here are some known facts about China that I would like to share with you so that you can stayed well-informed.
China is by far the world’s largest exporter and its proportion accounts for 13.8% of global exports. Since 2013, China has also surpassed United States to become the world’s largest trading nation, i.e. both exporting and importing.
China’s manufacturers is competitive in pricing resulted from two factors: A lower standard of living, which allows the owner to pay lower salaries to the worker; An exchange rate of its local currency, yuan, is partially fixed to US dollar, which means its value is relatively stable in the world market. These two factors has also benefited the country’s growth in a long run. China’s economy has enjoyed 30 years of double-digit growth. The foreign investment not only brings more employment to local workers, but also by sharing their technologies required by the Chinese government allows the Chinese companies to learn how to make the products themselves.
For a country that accounts for 20% of the world’s population, China’s growth not only reduces poverty but also leads to a rapid growth in the portion of its middle class population, which makes it biggest in the world, bigger than Germany, UK, France, and Spain’s middle class population combined. According to a study by consulting firm Mckinsey & Company, by 2022 76% of China will be made up by those defined as the middle class, with a majority of upper middle class, earning at least $16,000 per year. According to the local government website in 2014, as a district with 2.2 million population in Shenzhen, Nanshan’s GDP per capita were $49,000 ,overtaking Hong Kong and catching up with Singapore. A fast growth in wealth for middle class means much higher purchasing power, which makes a desirable targeted market for foreign companies.
Although the relative cost of manufacturing in China has risen in recent years, the country is still considered the optimal location regarding cost, logistics, and quality for overseas retailers, wholesalers and manufactures to either source materials or outsource the assembly in various industries. To identify reliable suppliers and establish a long-term partnership will benefit a lot for your business on the side of China. You have to do your homework beforehand to go to the right place to identify those verified suppliers. On the other hand, you will have to need a partner in China for localization to bridge the significant cultural and language gap between Chinese and the westerners if you want to do well in the Chinese market.
That’s what we are here for. Our mission is to assist you to succeed in China, whether through our professional interpretation service, exceptional sourcing experience in the electronics industry, and please drop us a call or a message for a section of free consultation.