Busting the “Made In China” Myth

From electronics to shoes to kitchen appliances, it’s highly likely that at least one of your home or office appliances is labeled “Made in China“. This has become a symbol of the current times in the current manufacturing industry; Everything, it seems, comes from China.

Whenever many individuals discover a product is made in China, they immediately conjure up an image of a cheap, poorly made, plastic and shabby product. Even though China is considered the world’s manufacturing capital and despite the fact that the biggest tech manufacturers and many other companies are profitable today due to their Chinese outsourcing business models, the China tag is unfortunately, still synonymous with poor quality. A quick analysis of the facts easily shows that nothing further from the truth.

It is definitely possible to get the highest quality of products from China. Getting quality products from China is often more indicative of the relationship American companies have with factories, in addition to the checks and balances that regulate the manufacturing process along the way. It is also important to remember that different individual organizations will have varying results in any industry, not just manufacturing With the right analysis informing the manufacturing requirements and processes, there is no reason to expect anything less than world class standards and the highest quality products.

The experience of Sino-US trade relations in the past decades has revealed that both countries can reap mutual benefits if American policy is able to resist temptations of protectionism. Constructive cooperation and candid dialogues create numerous job opportunities and bring goods and services across the U.S.

During the last 30 years or so, trade between the US and China have advanced at an impressive pace. In 2012, China was the second largest trade partner of the U.S. while the U.S. has become China’s largest export market. Chinese statistics have it that the total trade in goods between the two counties amounted to about U.S. $485 billion in 2012 with U.S. statistics showing an even larger figure.

U.S. based companies yield significant investment returns in China. Despite the global financial crisis, majority of the companies that invested in China still performed well and continued to significantly contribute to the profit growth of their parent companies.

Imports of products manufactured in China have also kept the rate of inflation low in America and improved the living standards of its citizens. Significant job opportunities in the US has been a result of trade between China and the US.

The Chinese economy is well and truly established and is now the backbone of the global economy and this enables the country to compete on quality rather than price. What cynics of products that are made in China fail to understand is that China has the potential become the most experienced manufacturer of just about any category or product (if not already) as they lead the global manufacturing race to deliver high tech, quality goods and commodities.

Looking to the future, the economies of U.S. and China still complement each other. In accordance with differences in factor endowments, the U.S. has a capital and technological edge, while China has an abundance of resources and masses of cheap labor. China imports technological and capital intensive products from the U.S. and exports labor intensive products. Given that there is larger gap in the knowledge economy and modern service between the two economies, there is great potential for development and cooperation in these areas.

So don’t be afraid of the label “Made in China”. Made in China often means increased profits for American companies and a steady influx of manufactured products to our shore. Your own organization can take advantage of all the benefits the “Made in China” label has attached.

Contact ITI Manufacturing, a proven and trusted leader in the global manufacturing industry to start benefitting today!

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