It is expected that China will advance from being a manufacturing powerhouse to an active leader in digital innovation in the coming years. But the market experts are predicting that the core of China’s success will largely remain on its manufacturing prowess. Perhaps we should have been paying more attention to the impact of the government’s Belt and Road Initiative- the project that aims to reinvigorate China’s ancient trading paths. Take a look at the following trends that will have a maximum impact on the China business.
Tariffs are border taxes charged on foreign imports. Importers pay the applicable charges at the point of entry to the customs agency of the country or economic bloc imposing them. Rather than being used to raise revenue, they are imposed to increase the price of foreign goods in order to make domestic produce comparatively cheaper, with the aim of encouraging domestic production by protecting local firms from global competition. The Trump administration has begun taxing $200 billion in Chinese goods. China lawyers are getting a huge number of phone inquiries from the US manufacturing enterprises looking at the great tariffs being imposed on their goods imported into the United States and wondering what they should do. Chinese policymakers have sought to reassure foreign businesses that their investments in the country are welcome and safe. With the economy slowing, Chinese leaders understandably want to make sure foreign capital keeps flowing.
China Supply Chain–
It is a fact that China made products are longer cheaper as they used to be. In spite of that, this country is still the only realistic manufacturing destination for various types of goods and items. Operating conditions in Chinese factories have significantly improved over the past year. Based on future output expectations and current inventory trends, manufacturing activity is rebounding in China. As such, the world of manufacturing as opened up to small businesses and start-up companies. Policymakers are accelerating approvals for road and rail projects and are trying to reduce business costs. More cash is being pumped into the financial system to bring down lending rates, taxes are being cut and state banks are being urged to keep credit flowing to companies hit by trade tensions.
China is today the world’s largest manufacturing economy and considered to be one of the most competitive nations in the world. China’s advanced and constantly improving manufacturing sector ecosystem, the push for automated processes, and the desire to near-source given the rising importance of the Chinese consumer – are making China’s manufacturing powerhouse even more powerful. A key part of this involves setting and enforcing consistent standards for all manufacturing facilities, with special emphasis placed on improving manufacturing techniques, quality management and brand nurturing.
China manufacturing remains a leader and is expected to grow 6% to 7% every year until 2025. Modularized mass customization could merge China’s capabilities in mass production with innovations required to deliver customized, differentiated products domestically and globally.