The Advantages of Manufacturing Products China still top sourcing destination in 2023

Whether governments or people like it or not, when it comes to manufacturing products China is still very relevant and an actor of world growth. China is one of the largest manufacturing countries in the world and is a major driver of global economic growth. It has become a powerhouse in the manufacturing sector, dominating global supply chains and exports. 

China’s manufacturing output data provides clear proof of its leading position in terms of manufacturing equipment, logistics infrastructure, and availability of raw materials. However, with the Tariff War with the U.S., the COVID-19 pandemic, and more recently its position towards the reshuffling of energy shipping routes towards Europe due to the war in Ukraine, China’s image is still very much a contrasted one.

That said, countries always have and always will have to fight for their access to resources, and competitive edge. This is why China still very much needs its trade balance to be positive and stay open to free trade. Going forward, let us list the reasons why international buyers should still consider China as a top sourcing destination.

#1 Cost is still the key – and Manufacturing Products (made in) China pins it

As long as retailers, brands, and wholesalers will be competing with each other, there will be a need for cost-driven purchasing strategies. For the time being, China largely holds a great deal of cards. It benefits from :

 – a large coastal area

 – high concentration  of industrial hubs that create intense competition between vendors

 – a fairly developed and fast transportation network

 – some of the largest B2B platforms ever seen on Earth that make factory-direct buying possible

#2 Made in China also means Delivery Efficiency

If you have ever traded with China before, you will know for a fact that you get to work with very hard-working people. Everything is not great all the time, but the delivery performance of most suppliers is on par, or even better than their peers in other countries. Surely buyers from corners of the world will prefer local procurement whenever possible, but when dealing with repeat orders, and bulk orders from China, shipping lines’ speed is rather consistent and a consistent planning for backorders helps avoid out-of-stock scenarios. 

Because importing businesses need efficacy and stability in the delivery of product lines to their outlets or warehouse, they would prefer to work with a country where you can swiftly find an alternate solution to a shipping route issue for example.

#3 A wealth of manufacturing companies, solutions & added-value services

Another advantage of buying from China is the fact that many purchasers can find support and help from business service companies such as a sourcing company in China. A traditional sourcing agent will invoice independently from a Chinese vendor and maintain transparency in all dealings. Sourcing companies are known to facilitate buying products from China, but also Quality Checks and many other quality assurance-related services.

Another kind of business is export companies. When a Chinese vendor is not able to export under its own company name, export companies can process their orders legally and get the goods through Chinese customs. This is a great solution for buyers working on one-shot buying deals, or who need to manufacture products in China that are low-cost.

As you can see, the pros of sourcing from China are rather numerous and weigh a lot in the balance. Notwithstanding efforts from local actors to reshore manufacturing, or re-localize their supply chains, the fact is that globalization has opened doors that are very hard to shut. Simply because the gains and value created by production workers in China and other sourcing destinations is too important for players to abandon them, even today.