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Top Manufacturing Sectors in China

China is the leading manufacturer in the world today in various sectors. Many top countries like US, India, European countries are focusing on the manufacturing sector in China today. China is growing with its top manufacturing sectors like IT, Inspections, Quality Control, Infrastructure, Mining, automobile and as well as energy industry. There is wide range of possibilities to grow along with the Chinese. So, many countries are focusing on its growth and searching the possibilities to work with the Chinese.
China had achieved top two positions in the industrial output across the globe today. The country had focused on the various constructions based elements along with the mining and quality control. The main perspective in China is its better quality at low prices which is attracting the various countries across the globe. According to the 2004 census reports in Chinese business, more than 500 Chinese companies had ranked as a top best enterprise in the world. Even the Chinese five year plan gives the preference to the various manufacturing industries in China. Many other countries are establishing their relations with China by investing in the manufacturing sectors. Even the country was successful in achieving the gross value on the output that was obtained through the manufacturing industries.
Machinery sector — The Chinese manufacturing in machinery sector is well established and was providing various quality services and the raw material to the various countries across the globe. Even the automobile industry was going on its pace with various quality spare part manufacturing with good inspections and pre shipment services in the country  in various sectors.

Posted by Jesus David Cano Romano
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How to make social Business in China

China is the country with multiple layers of opportunities to deal with the government at the city, provincial and as well as at the state level in which it is most highly populated country in the world. At different levels, the growth can be recognized which helps to open the door opportunities in the country socially. The social enterprising sector is also one of the most emerging sectors today in china.
The present situations of business in China are making efforts in the marketing development to boost the IT industrial sector in the country. The term social business is mainly targets the tool that can overcome the poverty conditions and financial sustainability. The investors who had investing in the industry will not get any divided except their investment and the profit will get credited for the development and the company expansion.
Social business when comes to the China, it is conceptual and the organizations just explores the practical handling of the business with a good corporate marketing strategy. The social marketing was already turned as an important and most essential component in which it enhances the services to the consumers. When Chinese ecosystem is observed, it is most highlighted digitally in which there must be comprehensive understanding to adopt the social business with China. The social enterprise mainly concentrates on the measuring and managing the challenges in the business. The business sector have a chance to use the social enterprise and the social business with the Chinese companies to accelerate the growth.

Posted by Jesus David Cano Romano
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2015 January Figures China PMI

The official data regarding the January’s PMI was released, here the highlights of the report:
Chinese manufacturers saw a fractional deterioration in operating conditions at the start of 2015. Although output rose slightly and new orders broadly stabilised, staffing levels were cut from 15th consecutive month. Talking about costs, lower raw materials led to the steepest reduction in average input since march 2009.
The PMI according to the HSBc and Markit Economics posted at 49.7 slightly lower than the forecast of 49.8, but fractionally upper than the 49.6 shown in December. it represents a renewed expansion on the manufacture in China, representing the first rise on the figures for first time in the last three months. 

Meanwhile the official figures by the NBS of China shown a 49.8 reaffirming the expansion on the manufacture across the country. 

 

HSBC’s analyst Hongbin Qu, commented on the figures “The HSBC China Manufacturing PMI rose to 49.7 in the final reading for January, from 49.6 in December, and revised down from the flash reading of 49.8. Both new orders and new export orders saw downward revisions, but still signalled marginal expansion. We think demand in the manufacturing sector remains weak and more aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth.” 

Posted by Jesus David Cano Romano
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Why Manufacturing in China Can Give Your Business more Advantage?

China is one of the largest manufacturers in the world. It is the highest populated country in the world which gains a great impact on nearly 2 billion consumers towards the Chinese markets. This is a live example to demonstrate the standards of the manufacturing with China. It provides a better edge for the competition in manufacturing outsourcing industry.
Nearly, the market is outsourcing around thirty percent of the market per annum. Compared to the other countries, China is the best among the all other companies which are quite expensive in transactions. The manufacturing of the products in China helps us to make a best production at a best place with good quality. The Chinese manufacturing companies open the markets of the creation of more innovations and research.
The regulations in the Chinese markets in manufacturing were also very clear and cost effective to do the business for a long time in country. Comparing with the United States, the cost varies in different levels at all corners in the manufacturing field. This makes the China the best for everyone in the manufacturing field. So, the businesses are paying more attention towards this country.
The best advantages are

Better proximity to clients
Lower pricing and reasonable costs on labour
Helps in attracting potential and new customers towards us
Helps in increasing the market
Helps in cutting of expenses related various operational things like supply material, Labour, equipment and many more.

Posted by Jesus David Cano Romano
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China’s Quality Control Industry Statistics

Quality control is defined as the process by which entities review the quality of all factors involved in the production of manufacturing goods, as defined by Wikipedia. ISO 9000 defines quality control as “A part of quality management focused on fulfilling quality requirements. In recent years, quality has emerged as a formal management function, with thequality concepts and practices evolving from a reactive and inspection-orientedapproach to a more proactive and strategy-oriented approach for quality management.Firms tend to develop their own quality management systems based on many factors,including their business strategies, external requirements, and internal operatingenvironments. It is no surprise that quality practices vary greatly from one firm toanother even within the same industry.
When the many marvellous achievements of ancient China are considered, rangingfrom architecture, literature, and innovative products, to scientific instruments, it isevident that, throughout the nation’s long history and civilization, high quality hasbeen important.Starting from the late ‘70, the Chinese Government has spent a lot of effort in promoting quality management. Policies and regulations were passed to put pressures on producers to pay more attention to their product quality. Under the pressures of the government, the implementation rate of modern quality management or TQM in China is unexpectedly high, especially in state-owned enterprises. A survey (Yu, Cochran and Spencer 1998) reported that 96% of the state-owned enterprises claimed that they had implemented TQM. At the same time, the fierce competition arising from market economy makes the managers take TQM in their enterprises more voluntarily. Generally speaking, the senior management’s commitment in improving quality is high. However, the quality of products from China is still undesirable.Quality is a concept that takes time to develop. China has started with rules and regulations for managers to follow. But to be really successful, China has to instil the concept to her people at a young age. Education is a key factor. If China starts building in the concept of quality to her education system now, in the not too far future, China can share with Japan the reputation of being a country that guarantee quality products.

Posted by Jesus David Cano Romano
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China inspection Services pre-shipment quality assurance

After China became a member of the World Trade Organization (WTO) in December2001, it became obvious that all Chinese firms, including the state-owned and thosecollectively owned, would have to adapt to a new competitive environment. Manyfirms have undertaken initiatives to enhance their competitiveness so that they canmeet the global challenge. Quality improvement has often received the highest priorityconsideration. Understanding how these Chinese firms operate is both important andchallenging to academics and practitioners. It is important because China representsthe largest and fastest growing transitional economy in the world. China is currentlythe largest producer and exporter of many consumer products and its future marketpotential is equally large given the sheer size of its population. It is also challengingbecause the transition of China’s economy has been largely planned by a governmentthat still maintains an active involvement in basic business affairs.
In the light of all this, the ways products are manufactured are still coming under scrutiny and criticism by several firms. This impending problem can have only one wholesome solution i.e. to deploy firms that offer inspection services who in turn test the quality and durability of products right from the get go.
A company’s Shipments often represent thousands of products. Checking 100% of the quantity would be long and expensive. A solution is to select samples at random and inspect them, instead of checking the whole lot. But how many samples does one have to select? On the one hand, checking only a few pieces might prevent the inspector from noticing quality issues; on the other hand, the objective is to keep the inspection short by reducing the number of samples to check.The relevant standards propose a standard severity, called “normal level”, which is designed to balance these two imperatives in the most efficient manner.This type of inspection is necessary if you want to check the raw materials or components that will be used in production. Buying cheaper materials can increase a factory’s margin considerably, so you should keep an eye on this risk.

Posted by Jesus David Cano Romano
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Corporate Social Responsibility (CSR) standards when sourcing in China

When sourcing in china it’s prevail to make sure that the manufacturer accomplishes several standards regarding to the CSR in order to assure that they comply with the musts when social auditing is performed.
Most of the Chinese or South East Asia suppliers in the recent times have labeled themselves as “SA8000 certified”*, which in C2W is used as key foundation when performing Social Accountability Audits in the suppliers facilities.
Also, while auditing should be required to factory managers to present all relevant documents for each requirement. In many cases, Chinese factory managers claim that while they adhere to CSR standards, they are will not share their records. The following provides an outline of a CSR audit with which managers can customise to meet their particular needs.
Below is a list of keypoints needed to review while auditing a candidate facility for manufacturing in China:
Guiding Social Audit Principles according to the SA8000
 
Child Labour: No use or support of child labour; policies and written procedures for remediation of children found to be working in situation.
 
Forced or Compulsory Labour: No use or support for forced or compulsory labour, including prison labour; no required ‘deposits’ – financial or otherwise; no withholding salary, benefits, property or documents to force personnel to continue work.
 
Health and Safety: Provide a safe and healthy workplace; prevent potential occupational accidents; remove, reduce risks to new and expectant mothers; provide personal protection equipment and medical attention in event of work-related injury.
 
Freedom of Association and Right to Collective Bargaining: Respect the right to form and join trade unions and bargain collectively. A company shall: respect right to organize unions & bargain collectively; not interfere in workers’ organizations or collective bargaining; inform personnel of these rights & freedom from retaliation.
 
Discrimination: No discrimination based on race, national or social origin, caste, birth, religion, disability, gender, sexual orientation, union membership, political opinions and age. No discrimination in hiring, remuneration, access to training, promotion, termination, and retirement.
 
Disciplinary Practices: Treat all personnel with dignity and respect; zero tolerance of corporal punishment, mental or physical abuse of personnel; no harsh or inhumane treatment.
 
Working Hours: Compliance with laws, collective bargaining agreements (where applicable) & industry standards; normal workweek, not including overtime.
 
Remuneration: Respect right of personnel to living wage; all workers paid at least legal minimum wage; wages sufficient to meet basic needs & provide discretionary income; deductions not for disciplinary purposes, with some exceptions; wages and benefits clearly communicated to workers; paid in convenient manner – cash or check form; overtime paid at premium rate; prohibited use of labor-only contracting, short-term contracts, false apprenticeship schemes to avoid legal obligations to personnel.
 
Management System: Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices.
 
(The SA8000 Standard is the central document of our work at SAI. It is one of the world’s first auditable social certification standards for decent workplaces, across all industrial sectors. It is based on the UN Declaration of Human Rights, conventions of the ILO, UN and national law, and spans industry and corporate codes to create a common language to measure social performance. It takes a management systems approach by setting out the structures and procedures that companies must adopt in order to ensure that compliance with the standard is continuously reviewed. Those seeking to comply with SA8000 have adopted policies and procedures that protect the basic human rights of workers. Below are the nine elements in the SA8000 Standard.)

Posted by Jesus David Cano Romano
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HSBC Flash China Manufacturing PMI™: January Figures

Today was released the monthly review on China’s PMI by Markit Economics and HSBC, here are the highlights of the report.
 
Key points
• Flash China Manufacturing PMI™ at 49.8 in January (49.6 in December). Two-month high.
• Flash China Manufacturing Output Index at 50.1 in January (49.9 in December). Three month high.
Data collected 12–21 January 2015

Hongbin Qu Chief Economist, china & and Co Head of Asian Economic research at HSBC said:
 

” The HSBC China Manufacturing PMI rose to 49.8 in the flash reading for January, up to 49.6 in December. Domestic demand improve marginally while external demand remained solid. the labour market weakened an prices fell further. Today’s data suggest that the manufacturing slowdown is still ongoing amidst weak domestic demand. More monetary and fiscal easing measures will be needed to support growth in the upcoming months”.

Posted by Jesus David Cano Romano
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The Global Impact of China’s Economic Transformation: Davos

A New stage of economy, more sophisticated division of labor and a more optimised structure is the New Normal in China’s Economy according to Premier Li Keqiang, for which he compared the Chinese Economy as a running train, which will not speed or momentum on the contrary will be powered by a stronger dynamo and around with greater steadiness and bring within new growth and new opportunities.
 
China’s economy will not suffer a hard landing even as it braces itself for a further slowdown this year, Li Keqiang, Premier of the People’s Republic of China, told more than 2,500 participants at the 45th World Economic Forum Annual Meeting in Davos-Klosters, Switzerland.
 
“The Chinese economy will face downward pressures in 2015,” Li said in a keynote speech at a special session of the Annual Meeting. “But the Chinese economy will not head for a hard landing.”
 
He added that the government will press on with structural reforms, which include liberalizing its services sectors, promoting mass entrepreneurship and innovation, protecting intellectual property rights and deepening its capital markets. “We will move towards the path of reforms. This way we can shift gear without losing momentum and achieve medium- to high-speed growth, and medium- to high-level developments.”
 
Using the analogy of a skier at Davos, he promised that China will “go at the right speed, keep balance and be courageous”.
 
Premier Li’s address came a day after the country announced its slowest growth rate in 24 years, with full-year GDP at 7.4% in 2014. The government has prepared the nation to embrace the “new normal” as it focuses on quality rather than speed of growth, and shifts its focus from an export-investment led model to one that is more reliant on consumption and the services sector.
 
In his address, Li also suggested that China would eschew stimulus measures through monetary easing but instead step up investments in targeted areas, including health, clean energy and transport, as well as provide support to the country’s small and medium enterprises, create employment for young people and optimize income distribution.
 
The Premier said China’s economic slowdown reflects the profound adjustments in the global economy and is consistent with its larger economic base. A growth at 7%, he pointed out, produces annual increase of $800 billion at current prices, larger than a 10% growth five years ago.
 
On the internationalization of the renminbi, Li explained that as China’s international trade increases, more countries are demanding the use of the Chinese currency to settle trades and investments. The pool of offshore renminbi has gradually expanded in recent years. Li said China is committed to opening up to the world but the internationalization of the renminbi is going to be a long-term process.
 
Here the Full speech of Premier Li Keqiang at Davos

Posted by Jesus David Cano Romano
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Understanding Great China’s Manufacturing Standards

Analysts have pointed out that though China has been very effective at copying and mass producing, it has lacked the creativity to come up with its own original products in recent years. In fact, many remain sceptical that this can change in a hurry, blaming a lack of innovation on built-in pressures to not step out of the line. But that’s not what the scenario is today. China has transformed dramatically and drastically. The standards that were then sub-standard have been revised to be on par with international standards.
Its emergence as a manufacturing powerhouse has been nothing less but outstanding. It has very recently overtaken the United States as the world’s largest producer of manufacturing goods. It has also used its huge manufacturing engine to boost living standards by doubling the country’s GDP per capita over the past decade, which for the UK took nearly about 150 years. It intends to follow in Japan’s footsteps by moving from a country known for cheap labour to a country known for the production of high-tech goods. In China, manufacturing creates $500 billion in services demand, and services demand $600 billion in manufactured goods. Several companies in China want to add more meaning to their manufacturing by replacing the phrase “Made in China” with “Created in China”. Proof of this is that in the field of terminal devices and mobile phones, China ranks among the top five when it comes to sales which, as their experts predict, will advance to the top 3 in 2015. China is also looking to skill up its workforce and move into more high-tech goods. Companies like Huawei had an astounding sale of 60 million phones last year, of which 20 million were smartphones. They are likely to sell 60 million smartphones this year. With such all round development in China and with several industries pumping in funds to have their units setup, China can only improve from here and reach a status where the phrase “Made in China” no longer raises an eye brow.

Posted by Jesus David Cano Romano