When understanding the fundamentals of the Chinese manufacturing industry, it is important to be familiar with the history of United States-China relations.
When President Nixon visited China in 1972, it helped restore balance to the two great nations on either side of the Pacific. Rather than continue their unnatural status as enemies, this rapprochement allowed the two nations to resume their traditional posture of increasing friendship and trade that soon proved beneficial to both.
The movement of China away from what was perceived on the United States side as an anti-American alliance, and from what was perceived on the Chinese side as collective self-defense against what was believed to be a hegemonic power, allowed the two great players to gradually veer away from their postures of mutual suspicion and move slowly but firmly towards a new arrangement where each nation could take advantage of the strengths available from the other.
Effects on Global Market
China’s great reserve of labor and intense desire to modernize came into combination with American knowledge and market needs. This brought manifest relief to American consumers suffering from inflationary pressures and set in motion the great and peaceful rise of China as a world-class provider of finished goods.
While it is no doubt true that China would have risen on its own merely through its own efforts to serve its own enormous market, resuming relations with America permitted it to shorten the process and return to its ancient prominence much more rapidly than originally envisaged. As Chinese industry has grown in experience, it has moved up the ladder from a purveyor of basic goods to one that engages in the supply of even the most complex items. With the two nations now clasped firmly in a symbiotic and stable relationship, the number of foreign companies that desire to avail themselves of the many advantages inherent in Chinese manufacturing expertise grows larger every year.
Many start-up organizations are particularly welcoming of the opportunity to form joint overseas ventures which allow them to more rapidly move their new ideas out into the marketplace without needing to go through the endless delays and expense of constructing their own dedicated source of supply from scratch. They simply work out an arrangement with one of China’s many custom manufacturing facilities, any of which can rapidly ramp up production for new product lines at a very limited cost and time delay for their client.
Ways to Benefit
Of course, not every start-up is capable of hunting down the perfect match for a Chinese manufacturing partner. Despite their increasingly cooperative relationship, there nevertheless remain large differences in the way that Chinese and American laws and business practices operate. It is very important to have someone who can serve as a diligent intermediary who can arrange the proper introductions and ensure that the overseas client’s interests are properly represented.
While it has been many years since President Nixon visited China, that original opening for beneficial mutual trade has only continued to grow. What was once only a small sliver of light shining down upon the fate of the two countries has turned into an endless river of trade and peaceful commerce flowing across the broad waters of the Pacific.
If you would like to join the many companies that are taking advantage of all the benefits Chinese manufacturing can offer, contact ITI Manufacturing today!