China Manufacturing industry plays an important role in China’s economy. As per a report reconciled in 2015, it was found that manufacturing contributed to about 27% of the country’s output and this volume that China manufactured was about 20% of the world’s total manufacturing output. With $2010 billion manufacturing output, it was leading with a good margin from the next country in line – the US.
The output of the China manufacturing industry has risen by 339% in the last ten years. Growing at a CAGR of 7.16%, this sector contributed about 50% of the world manufacturing output in 2017.
Some of the reasons behind this are: –
- The labor costs in China are substantially lower than the cost of labor in most developed and developing countries.
- Raw materials, semi-finished products and final products are all of the highest quality.
- Raw materials are priced affordably and are considerably cheaper because they are produced in China itself and also because these materials are in great demand all over the world, thereby driving the rates lower.
- There is no export related additional charges. Some countries like the US have no import duty on products imported from China.
- Presence of trained manpower and that too in good strengths because of the high population of the country;
- Faster production rate and prompt deliveries by China manufacturing industry.
- Professional attitude of the companies working with foreign organizations.
- Experience of working in the outsourced gamut for years now.
Some more interesting facts about China manufacturing industry here: a report by the National Geographic in 2008 mentioned that
- China makes about 70% of the world’s umbrellas and 60% of the world’s buttons.
- 50% of toys and kitchen appliances sold in the US comes from China.
Some more facts –
- Made in China 2025 movement has seen the modernization of electrical machinery in industries.
- It has about 100,000 garment making companies.
- Has the world’s highest concentration of auto-parts manufactures.
- Has been the largest exporter of furniture for years now.
- The bags and accessories segment here is growing at a rate of 14.5% every year.