China, where we are going?
A new era for trading, cooperating, manufacturing in China
Companies that continue to base their manufacturing strategies solely on China’s
rock-bottom wages and stratospheric domestic growth rates are in for a rude
awakening. New challenges will require new competitive priorities.
China’s emergence as a manufacturing powerhouse has been astonishing. In
seventh place, trailing Italy, as recently as 1980, China not only overtook the United
States in 2011 to become the world’s largest producer of manufactured goods but
also used its huge manufacturing engine to boost living standards by doubling the
country’s GDP per capita over the last decade. That achievement took the
industrializing United Kingdom 150 years.
Today, however, China faces new challenges as economic growth slows, wages and
other factor costs rise, value chains become more complex, and consumers grow
more sophisticated and demanding. Moreover, these pressures are rising against the
backdrop of a more fundamental macroeconomic reality: the almost inevitable
decline in the relative role of manufacturing in China as it gets richer.
Rising factor costs
Rising wages and the appreciation of the renminbi have dampened China’s exports in
recent years and focused global attention on its future viability as a low-cost
manufacturing center. Most multinationals that produce labor-intensive goods, like
textiles and apparel, are actively seeking to diversify beyond China to reduce costs
and mitigate political and supply-chain risks. China-based processors of goods such
as beverages, fabricated metals, food, and tobacco are also concerned about rising
costs, including those for packaging. Yet their regional focus makes this less a
global competitive issue and more a question of which players in the value chain will
create the most value.
(Mc Kinsey&Company)
Despite of these facts, we still can setup profitable
cooperations and also work with competitive prices!
Development
Projections
Support
Marketing
Trading
Competition
A number of Chinese
Companies are offering
their services in different
countries, however your
personal representative
is not in China.
We are well networked
directly in China. We
have cooperations and
also production places
under our supervisory,
what is still important for
long-term quality.
Also our projects in China
are controlled by our
staff.
© IES 2022
© IES 2022