Why manufacturing in China?

Written by:Luke Lao
Date:Friday, October 18, 2019 3:33 PM


The most obvious answer is “low cost”. That is right but that is not all. With 3 decades continuously fast economic growth, manufacturing in China is not “that low cost” anymore, but China is still the most convenient place for manufacturing. It is convenient because of the reasons below:

Easy Supply Chain Development

For most industrial or home using commodities (means not rockets or air-fighters), in the industrial intensive areas like Guangdong or Shanghai region, one can easily find 90% of production process needed in a half-hour driving range. It is very common in China than in any so-called “industrial zone” (normally a block contains more or less a dozen multi-floor industrial buildings) one can find all kinds of processing workshops such as CNC machining, tooling, electric wire cutting, EDM, plastic injection, gear hobbing, anodizing,  aluminium extrusion, mold making etc. The chance is, you can basically complete your supply chain within a few minutes driving distances. 

Countless Manufacturer Options

Workshops here comes with all different level, all different precision, all different scale, handle all different volumes and at all different level of cost also. Various level of manufacturing exist here, one can find workshops here with 2 CNC machines operated by the owner and his wife. One can also find workshops specialized only for gear hobbing or just polishing metal surface or bending aluminum pipes or big workshops with 20 advanced machining centers or 100s machines with different capabilities. Big manufacturing giant like Foxconn (who is our shareholder) known as a major OEM company for iPhone also places their factories with hundreds of thousand employees here. There must be a supplier suitable for your product, no matter if you like to make a sample, you are looking for small volume trial for market or massive productions. Literally, every stage of manufacturing, every aspect of manufacturing and every process of manufacturing is covered here. 

Why manufacturing in China? Why not?   

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