Is China still attractive? This question is often raised by hesitant business managers and entrepreneurs, who are still struggling with COVID-19’s ripple effects. The truth is that unlike the popular public opinion about China, China is bustling with economic, business, and commercial activity. The Chinese market manages to maintain its lucrative status as a consumption powerhouse, and local sales go up across all industries, B2B and B2C alike.
To put it differently, China is indeed still attractive, and today more than ever before, the potential to sell and profit in China is unmatched worldwide. However, it is not easy to enter the Chinese market. One way to circumvent some of those COVID-19 ripple effects and to fully capitalize on your sales in China is to start manufacturing in China.
Manufacturing in China – The essentials
In June, we participated in a special webinar series initiated by the China-Britain Business Council, titled “Success at a Distance.” Our general manager, Arie Schreier, spoke at the concluding meeting of this series, which focused on effective manufacturing operations in China.
You are invited to watch the webinar recording here:
Learn more about three perspectives on manufacturing in China
Three things to consider for manufacturing in China
Thinking about setting up manufacturing in China? Contemplating the establishment of a local China assembly service? We have three words for you: China’s industrial clusters. These clusters are specific areas located in different geographic locations, which house local manufacturing facilities that belong to different companies from the same sector. China is home to over a dozen industrial clusters, which are used by a wide range of industries, from automotive and aerospace to industrial mechanization and medical equipment. The great thing about clusters is that they provide the companies that use them with many resources, including knowledge sharing, R&D facilities, and more.
Learn about the financial advantages of free trade zones in China
Meanwhile, in other news, assembly in China is being impacted by innovative industrial processes and the penetration of robotics into factories. The government is interested in driving its technological capabilities forward – and manufacturing automation plays a huge role. In fact, robotics and accelerated automation were one of the reasons China was able to recover relatively quickly from the COVID-19 crisis. Automation and digitization processes are becoming more and more common throughout local supply chains, across a myriad of industries.
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On to sustainability. China is the world’s largest air polluter – with CO2 emission rates growing every year – but it is taking measures to fight pollution. If you are thinking about setting up a factory in China, we recommend taking into account that China is actively fighting air pollution and plans to enforce caps on greenhouse gas emissions by 2030. By 2060, China plans to become completely carbon neutral.
Make sure your manufacturing in China is protected
Some foreign brands are concerned about transitioning their manufacturing into China because they are afraid of intellectual property theft. While it is true that copycats in China are certainly an existing phenomenon, China is doing something about it. For starters, China is reinforcing its IP protection framework, which includes four dedicated IP courts dispersed throughout the country.
Nowadays, it is becoming increasingly evident that manufacturing in China is an ideal route for embarking on a China market entry. With the right approach and the proper local China business support, you too could get the most out of your China manufacturing and experience a sales increase.