So far, we have known factories in China as world-class factories. Goods and products we use may come from China. China factories produce and sell more goods than other countries. Look around your house! You may find many products from China such as water heater equipment and others. So, what are the characters and other related aspects of China’s factories?
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China Factories Characteristics of Industrial Production
If you are curious about where the world’s factories are, China is the country that suits this question. China has become a world-class producer, which means that many products come from China and are spread to all parts of the world. In fact, according to reliable data, China has experienced a significant increase in value of 4 trillion USD per year in recent years. A very fantastic figure where more than half of that value comes from product exports.
The ability of factories in China to produce varied products, following current trends, and competitive prices are the keys to the success of this sale. That is why many companies outside China buy products from factories. Nearly half of China’s state income comes from industrial activities. Another fact is that China has now occupied the top position, especially in the field of technology investment in recent years.
This factory invests billions of dollars per year to continue developing products and dominate the world market. As a result, there is increased automation which then makes the production process more effective and modern. Many factories use robots in their industrial activities.
The factors that support the success of Chinese manufacturers is how they offer competitive product prices. It turns out that this factor has a strong role because of the following things.
- Labor wages in China are relatively low even though many staff and skilled workers are involved. Both of these things cause lower production costs and shorter production times.
- Industrial activities are supported by adequate infrastructure, stable and adequate supply chains, and sophisticated technology. These are the things that support the development of the business chain.
- Export activities receive full support from the government and tax-related policymakers.
- Available natural resources are easy to access.
- Currency is relatively weak. It is a very profitable opportunity for foreign customers.
- Unfortunately, labor protection in factories in China is not yet completely strong.
Location, company, and industry greatly influence working conditions in factories. Many factories have met safety standards for their workers and guaranteed welfare for them. However, in other places, the challenges may be different.
Products from China
Even though you may have used products from Chinese factories, perhaps you don’t know more about the products that come from China. The product has also been produced by many factories in the world. Initially, this product was labeled as a cheap product with low quality.
However, many changes have occurred to bring this product to a higher level and a quality product. The products are also starting to vary, ranging from accessories such as buttons, and medical equipment to sophisticated machines. Like one of the products from Legom Smart which focuses on HVAC technology. It is also not a new factory in China because it has been operating for many years.
The following are several mass productions from China’s industrial sector and major export items.
- Electronic devices. Of course, this is enough to dominate the communications technology sector such as smartphone products and smart watches. Many factories are concerned with producing computer components and household electronic equipment.
- China also has production strength in mechanical devices and machines including motor vehicle engines and spare parts.
- Some of you must have bought clothes and footwear from China. The attractive and up-to-date design of this industry attracts many consumers to buy it. This includes fabrics, daily wear, formal wear, party wear, and accessories.
- Much medical equipment comes from China, for example, ventilators, masks, scanners, and thermometers.
Weaknesses and Advantages of Partnering with Factories in China
Industry in China is spread across various regions. However, there are regional specializations that are usually located close to the factories. This certainly makes it easier for those who want to collaborate and do business in China. However, everything has two different sides, like in factories in China.
The advantages that we know are competitive and affordable prices which are in line with continuously developing facilities. One of the weaknesses is that the long distance between China and its trading partners has given rise to several problems. However, there are many positive things if you look at it from the profit side.
- Low production costs affect selling prices and provide profits.
- The production process is very organized thanks to years of experience going through the ups and downs of the industrial sector
- Bring better world-class branding to your company.
- Efficient and steady production process.
- Many factories can be your partners. Currently, more than 2 million factories are operating in various industries.
However, you must be aware that distance is very influential, for example, transit will take more time. It turns out that language can also be a barrier, but now there are many experts or applications available that can help with communication. There are still issues related to intellectual property laws. Because the production process is mass, there is a fairly high limit for the minimum order quantity at factories in China. However, seeing more benefits, you can consider partnering with these factories.