We all know those articles about "how to reducing your cost in China", "The real costs of manufacturing in China", "Cheap Chinese Products" and etc.. Here is another story about "What we see for 'made in China".
EASTHV Holding have direct contact with more than 200 factories in China. By visiting those factories (EASTHV have subsidiary in Shenzhen City), some facts have to be introdeuced:
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Chinese labor stay with the lowest paid in the world. In the southern China, people can get about 150 Euros per month, and in the Northwest China, this number is about 80 Euros.
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Only Shenzhen has more than 900 million workers in all kinds of industries. Most of them are skilled workers.
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They usually work more than 10 hours per day and do not have Saturday and Sunday.
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Chinese factories are constantly re-investing to improve production capacity, product quality and becoming more innovative.
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The working condition is getting better. But in some special industries such as printing and metal processing, the work environment of 80% factories (most of them are small factories) still very bad. It is very harmful to not only worker's health, but also to those bosses. (our friend, boss of one a big printing factory dead 4 month ago because of air pollution).
These are only a few factors that why Chinese manufacturers can produce product at such a low cost. the other factors include, raw materials, logistics, storage, delays and etc., Chinese manufacturers can produce labor intensive products at 25% to 70% less than American or European manufacturers.
Those methods of cost reduction are not guaranteed for all companies in all industries, and language problem is one important factor to communicate with buyer and those factories. Even considering these risks, the option of sourceing from China is still the best solution for business worldwide. But be aware of following things:
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B2B search engines like Alibaba, Made-In-China , Global Sources and etc., are not trustable. (Searching "Alibaba cheater" and see the result)
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Quality Control Process, and how to handle that issue
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Less trader, more profits
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Ripped off without even knowing it
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Other risks, see our anohter article: How to purchase GOOD product from China?
Actually these are manageable and preventable risks, the only thing need to do is to find a trustable supplier or business parnter. That's all!
For more information on international trade and sourcing in China, do not hesitate to contact EASTHV.
