When we hear the terms “Made in Germany” or “Made in USA”, we often associate them with products of trusted quality and reliability. However, it is now already more commonplace to read the term “Made in China” on our products. Even the most popular mobile devices, such as Apple iPad and iPhone have been produced in China. The manufacturing industry in China has been fully engaged in sophisticated processing and production. Some local China companies are able to produce their own proprietary high-tech products. China is known for high degree competitiveness in the global market. Many people are already able to get out of the low-cost impression when it comes to “Made in China” products.

Chinese products are no longer the symbol of mediocre quality and lower prices. The global market for low-cost products is actually huge, even in developed countries. With their internal competitiveness, many Chinese are able to offer high value-added products. Scientific approaches allow for remarkable achievements in national level. High quality products from China are often specific in detail, which include reliable labeling and packaging. It should make sense for importers to check their products before the final payment is released. In a more advanced stage, many importers establish joint venture and other form of co-operations with manufacturers and traders in China.

We also continue to see increasingly innovative products in China. Chinese manufacturers are known to be adept in ensuring that their products will meet the taste of consumers in any country. It is clear that that the definition of “Made in China” is being rewritten. It might be hard to understand why manufacturers in China are able to produce decent products at lower costs. Workers in Chinese manufacturing plants usually come from rural areas. Their food, accommodation, welfare, clothing and others are provided by employers. As a result, these workers often agree to receive lower salaries. There’s usually no schooling for children near the manufacturing plant, so they send money to their families in villages or small towns.

Consequently, enterprise costs of manufacturing facilities in China is usually different compared to the West, Something that’s considered as variable costs in Western accounting system, would be put into the overhead category in China. The level of success in a Chinese company is often by measured by the number of workers, instead of financial performance. The huge economies of scale employed by giant Chinese manufacturers ensure lower costs.