China Sourcing Gates: we open for you the gates of China's manufacturers

Market Study.

China is the most dynamic and fastest growing market of Sthe world

  • - 7-10 % GDP-growth forecast for the decade

  • - Arising out of new middle-class, 6% growth in consumer power

  • - During the next years, up to 150 milion workers are expected to move from the country to the cities and the industrial zones - this will keep industrial wages at a low level.

  • - Whilst there was a 40 % a global FDI in 2001, China registered an increase from US$ 41 bn to US$ 46.8 bn (plus 14 %)

  • - Further opening up as a result of WTO entry


Exports have increased considerably over the last few years

  • - Foreign companies including from Hong Kong and Taiwan play an important roles

  • - Competitive sourcing has become one of the most important business challenges

  • - More and more companies realize its great impact in the business success


The China sourcing Imperative: Invest in China to take advantage of the country's cheap labour and sourcing opportunities or lose to your competitors
Many major international consumer goods makers and traders have substantial sourcing activities in China, be it in garments, shoes, white goods, brown goods...
China has long been the world's leading manufacturer in categories such as toys, air conditioners, motorcycles and televisions.
But in recent years the opportunities to source in China has expanded to include high-tech products such as electronic components
Sourcing for components and semi-finished products are the new trend for western companies China today has a strong supply base
The Chinese manufacturing sector has been proliferating and growing rapidly during the last years- China is already the worlds' fourth largest manufacturer
China got a seemingly unlimited capacity for low cost production; productivity has increased and is very competitive now

Opportunities for saving in China
Labor - flexible working conditions, average wages approximately 50 cents per hour (comparison: India 80 cents, Mexico US$ 2.30, Poland US$ XX, Germany US$XX)
Raw material and processed materials often cheaper
Capital avoidance in China-relative low setup land and factory expenses
Low cost product design, and R&D
Sourcing is a substitute for production in the home country
China based suppliers have improved in consistency and realibility.
Items made in China show greater sophistication and improved quality.


Sourcing can be the starting point for expansion in China providing for the development of specific China competence, laying the foundation for own production in China as a possible goal.