{"id":2199,"date":"2021-06-14T18:00:41","date_gmt":"2021-06-14T18:00:41","guid":{"rendered":"https:\/\/examinechina.com\/blog\/?p=2199"},"modified":"2023-02-18T15:15:03","modified_gmt":"2023-02-18T15:15:03","slug":"factories-in-china","status":"publish","type":"post","link":"https:\/\/www.examinechina.com\/factories-in-china\/","title":{"rendered":"Factories in China"},"content":{"rendered":"\n<p>China is often called the World\u2019s Factory. The reason is that China is the manufacturer producer in the world. In recent years, its value soared to an annual sum of 4 trillion USD, of which 2.5 trillion USD was exported. Due to their competitive prices and wide range of products, foreign companies often choose to source from Chinese factories. Let\u2019s dive deep into the topic of factories in China.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Characteristics of industrial production in China<\/h2>\n\n\n\n<p>Industrial production accounts for nearly 40% of China\u2019s GDP. Additionally, China has been one of the top leaders in technological investments in the past couple of years, investing billions of USD annually. It results in a tremendous increase in automatization through the modernization of production lines and the widespread use of robots in Chinese factories.<\/p>\n\n\n\n<p>Major industries in China include mining, energy, technology, agriculture, textiles, and construction industries. Foreign trade plays a significant role in China, as China is not only the world\u2019s largest exporter but also the EU\u2019s largest trade partner. In fact, China\u2019s imports reached 362 billion EUR in 2019.<\/p>\n\n\n\n<p>China\u2019s competitive prices are influenced by a variety of different factors, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Skilled labor paired with relatively low wages, which leads to much lower production costs, as well as much shorter production time.<\/li>\n\n\n\n<li>Highly developed business ecosystem, which includes supply chains, production infrastructure and components, and technological facilities.<\/li>\n\n\n\n<li>Weak labor protection laws.<\/li>\n\n\n\n<li>Chinese tax policies are favoring the export of products.<\/li>\n\n\n\n<li>Access to natural resources in China.<\/li>\n\n\n\n<li>China\u2019s relatively weak currency, making prices more favorable to foreign customers.<\/li>\n\n\n\n<li>Automatization of production in Chinese factories.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What is produced in factories in China?<\/h3>\n\n\n\n<p>No matter what it is \u2013 a similar thing was manufactured in China. In the past Chinese products were associated with cheap, low-quality items. Nowadays, Chinese factories offer a wide range of high-quality products, ranging from simple products such as buttons to more complex machinery and medical apparatus.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">China\u2019s major export industries include:<\/h4>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li><a href=\"https:\/\/examinechina.com\/blog\/electronics-impor-from-china\/\">Electronic devices<\/a> \u2013 smartphones, smartwatches, computer parts, and small household appliances.<\/li>\n\n\n\n<li>Mechanical devices and machinery \u2013 machinery, <a href=\"https:\/\/examinechina.com\/blog\/import-car-parts-from-china-duty-rate\/\">car parts<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/us-duty-rate-for-clothes-imported-from-china\/\">Clothing<\/a> and <a href=\"https:\/\/examinechina.com\/blog\/us-tariffs-on-shoes-from-china\/\">footwear<\/a> \u2013 fabrics, fast-fashion products, accessories.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/us-tariffs-on-toys-from-china\/\">Toys<\/a> and <a href=\"https:\/\/examinechina.com\/blog\/pet-accessories-from-china\/\">animal accessories<\/a> \u2013 interactive toys, dog beds.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/medical-equipment-from-china\/\">Medical devices<\/a> \u2013 specialized medical equipment, pulse oximeters.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Industrial regions in China<\/h3>\n\n\n\n<p>China is known for its regional specializations. Specific categories of products are manufactured in factories closely located to one another. It makes it much easier to find suppliers in China.<\/p>\n\n\n\n<p>The most developed industrial regions are located in special economic zones created in the 1970s. They were created to enhance China\u2019s international trade. These regions include the Pearl River Delta, Beijing Area, and the Yangtze River Delta.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The main industrial regions in China are:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Beijing\/Tianjin \u2013 automotive, steel, pharmaceutical, petrochemical, and technology industries.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"http:\/\/examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-1024x659.jpg\" alt=\"Production in China\" class=\"wp-image-2203 lazyload\" width=\"700\"\/><noscript><img decoding=\"async\" src=\"http:\/\/examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-1024x659.jpg\" alt=\"Production in China\" class=\"wp-image-2203 lazyload\" width=\"700\" srcset=\"https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-1024x659.jpg 1024w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-300x193.jpg 300w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-768x494.jpg 768w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/examinechina.com\/blog\/factories-in-shanghai\/\">Shanghai<\/a> \u2013 automotive, electronic, textile, steel, medical and financial technologies.<\/li>\n\n\n\n<li>Suzhou \u2013 nanotechnology, biomedical technology, and factories manufacturing products ordered by foreign companies.<\/li>\n\n\n\n<li>Shaoxing\/<a href=\"https:\/\/examinechina.com\/blog\/textile-production-area-in-china\/\">Keqiao<\/a> \u2013 textile industry.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/small-home-appliances-production-area-in-china\/\">Ningbo<\/a> \u2013 electronics, clothing, plastic, paper, and lighting industries.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/wenzhou-footwear-production-area-in-china\/\">Wenzhou<\/a> \u2013 footwear industry.<\/li>\n\n\n\n<li>Nanjing \u2013 automotive, electronics, energy, and steel industries.<\/li>\n\n\n\n<li>Chengdu\/Chongqing \u2013 electronics, automotive, machinery, and chemical industries.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"http:\/\/examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-regions-1024x499.jpg\" alt=\"Middle Kingdom production\" class=\"wp-image-2202 lazyload\" width=\"700\"\/><noscript><img decoding=\"async\" src=\"http:\/\/examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-regions-1024x499.jpg\" alt=\"Middle Kingdom production\" class=\"wp-image-2202 lazyload\" width=\"700\" srcset=\"https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-regions-1024x499.jpg 1024w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-regions-300x146.jpg 300w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-regions-768x374.jpg 768w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/production-in-china-regions.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/examinechina.com\/blog\/guangzhou-fabric-market\/\">Guangzhou<\/a> \u2013 various industries, ranging from toothpicks, textiles, machinery parts to <a href=\"https:\/\/examinechina.com\/blog\/import-home-decor-from-china-to-the-us\/\">home decorations<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/foshan-furniture-markets\/\">Foshan<\/a> \u2013 furniture industry.<\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/blog\/shenzhen-electronics-markets\/\">Shenzhen<\/a> \u2013 the main center of the electronics and high-tech industries.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"http:\/\/examinechina.com\/wp-content\/uploads\/2021\/06\/factories-in-china-production-1024x734.jpg\" alt=\"Factories in China production\" class=\"wp-image-2204 lazyload\" width=\"700\"\/><noscript><img decoding=\"async\" src=\"http:\/\/examinechina.com\/wp-content\/uploads\/2021\/06\/factories-in-china-production-1024x734.jpg\" alt=\"Factories in China production\" class=\"wp-image-2204 lazyload\" width=\"700\" srcset=\"https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/factories-in-china-production-1024x734.jpg 1024w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/factories-in-china-production-300x215.jpg 300w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/factories-in-china-production-768x550.jpg 768w, https:\/\/www.examinechina.com\/wp-content\/uploads\/2021\/06\/factories-in-china-production.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\">The advantages and disadvantages of manufacturing in factories in China<\/h2>\n\n\n\n<p>Manufacturing in China has many strengths and weaknesses. The main advantage is China\u2019s highly competitive pricing and well-developed infrastructure. The large distance between China and its largest trade partners is one of the biggest disadvantages, which leads to a variety of different issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages of manufacturing in China<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Years of experience leading to a well-organized production process.<\/li>\n\n\n\n<li>Lower production costs.<\/li>\n\n\n\n<li>There is a bigger chance that our company to be known internationally.<\/li>\n\n\n\n<li>Mass manufacturing in short production time.<\/li>\n\n\n\n<li>A wide selection of factories (China has approximately 2.8 million production plants).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Large distance, which leads to long transit time in most cases.<\/li>\n\n\n\n<li>Language barrier.<\/li>\n\n\n\n<li>Problems with intellectual property laws in China.<\/li>\n\n\n\n<li>High MOQ (Minimum Order Quantity) in many factories.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are OEM and ODM?<\/h2>\n\n\n\n<p><a href=\"https:\/\/examinechina.com\/blog\/what-is-oem\/\">OEM and ODM<\/a> are two terms used to describe a situation when a company outsources production to manufacturers. The difference is mainly in the design process.<\/p>\n\n\n\n<p>In the OEM model (Original Equipment Manufacturer), a company projects products materialized by a manufacturer. These goods are typically manufactured according to the designs and specifications provided by the contracting company. The client company thus places its logo on the final product.<\/p>\n\n\n\n<p>In the ODM model (Original Design Manufacturer), a company designs and builds its products, which are sold to other companies. Contracting companies can introduce their modifications to already available projects and then sell them under their brand based on a license. It is also possible to commission a factory to create a specific product and its implementation process as part of an ODM.<\/p>\n\n\n\n<p>You can choose either ODM or OEM model; many manufacturers of both types can be found in China.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Concerns relating to trade with China<\/h2>\n\n\n\n<p>It\u2019s obvious that trading companies have to be aware of scams. Various types of <a href=\"https:\/\/examinechina.com\/blog\/tag\/scam-from-china\/\">fraud<\/a> still occur in China on a daily basis. These include, for example, intermediaries claiming to be producers. Although there is a belief that the safest way is to place orders from large factories, smaller production plants should not be ignored. The best way is to find experienced companies that have all the necessary certificates and documents.<\/p>\n\n\n\n<p>To avoid problems that may occur while dealing with a Chinese business partner, we recommend following these rules:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>draw up a <a href=\"https:\/\/examinechina.com\/contract\/\">commercial contract<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/examinechina.com\/credit-report\/\">verify your supplier<\/a><\/li>\n\n\n\n<li>conduct a factory inspection in person or with our help<\/li>\n\n\n\n<li>run <a href=\"https:\/\/examinechina.com\/quality-control-in-china\/\" data-type=\"URL\">quality control <\/a>tests at various stages of the production process<\/li>\n\n\n\n<li>analyze customer reviews<\/li>\n\n\n\n<li>order samples.<\/li>\n<\/ul>\n\n\n\n<p>Before contacting a Chinese supplier, it may be worth specifying upfront what type of product you will be expecting. Also, make sure to agree on a price based on the quantities you will be ordering. If you are not yet decided on a specific product, we recommend first reading our post on <a href=\"https:\/\/examinechina.com\/blog\/what-is-worth-importing-from-china\/\">popular export industries in China<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China is often called the World\u2019s Factory. The reason is that China is the manufacturer producer in the world. In recent years, its value soared to an annual sum of 4 trillion USD, of which 2.5 trillion USD was exported. &#8230; <a title=\"Factories in China\" class=\"read-more\" href=\"https:\/\/www.examinechina.com\/factories-in-china\/\" aria-label=\"Read more about Factories in China\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":2201,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[221],"tags":[182,23,178,350,63,219],"class_list":["post-2199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-production-regions","tag-china-import","tag-china-sourcing","tag-china-suppliers","tag-factories-in-china","tag-import-from-china","tag-manufacturers-from-china","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"_links":{"self":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts\/2199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/comments?post=2199"}],"version-history":[{"count":4,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts\/2199\/revisions"}],"predecessor-version":[{"id":6308,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts\/2199\/revisions\/6308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/media\/2201"}],"wp:attachment":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/media?parent=2199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/categories?post=2199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/tags?post=2199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}