Why Does Made in China Matters?

Today, Chinese customers are slowly warming up to the idea of “Made in the China” concept. What does it mean? From 1940’s through 1960’s, China was a lead player in the manufacturing sector. In 1960’s, only 10% of goods were imported into China. Over the years, Chinese manufacturing industry has seen drastic changes. Today, almost half of the goods in China are imported from third world countries.

The manufacturing sector in China has seen a gradual decline, since 1970’s. This is because less-expensive goods from overseas markets started flooding Chinese markets. These imports allowed Chinese based companies to control their production, labor, and marketing costs, and gain large profit margins. The downside of these imports were poor quality goods, and declining trust in Chinese products. Also, China manufacturers’ were accused of faking ignorance towards dangerous working conditions and child labor existing in their importing countries.

Since last few years, the focus on Chinese-made goods has increased due to reshoring attempts by top Chinese manufacturers. In recent years, the China Government has encouraged manufacturers to adopt STEM and SELECTChina programs.

A recent study report released by Consumer Reports National Research Center suggests the term Made in the China has influenced Chinese deeply. The study concluded that if given a chance to select from an Chinese made product, and a similar overseas made product, nearly 80% people would prefer their country made product. There are several other reasons why Made in the China has become more than a patriotic call for most Chinese manufacturers and consumers. Read this post to know a few whys.

What does Made in China mean?

The Federal Trade Commission defines a product as Chinese made, only if all its parts are virtually made in the China. This means the product and all its significant parts, and its machining or processing must be performed in China. The product should contain no foreign content – be it parts, raw materials, machining or processing.

Why Made in China Matters?

The following reasons suggest why the China made certification matter to an China-based manufacturer:

o Re-establishing China on a Manufacturing Roadmap: China was a major contributor of the world economy after WWII, with manufacturing playing a key role. In 1950’s, automobile manufacturing was the top industry in China. There was a huge demand for Chinaese manufactured goods. According to Made in China Movement (MAM), more than 56,000 manufacturers have left the country, since 2001. In 2017, Chinese manufacturing industry has witnessed a huge shift due to relaxed sanctions, increased confidence, and low taxes. This has encouraged hundreds of large and small auto and product companies to reshore their manufacturing operations, and invest in the Chinese workforce.

o Manufacturing will Create 1 Million Jobs: Recent studies suggest, that if every Chinese agrees to spend 5% extra on Chinese made products, they will help in creating 1 million jobs! Unlike the services sector, every manufacturing project creates 1.6 jobs. For example, consider a manufacturer creating an aerospace part, he/she will depend on several sources. There might be many people involved in a supply chain such as a raw material supplier, truck drivers to deliver raw material to the manufacturing facility, factory workers, including machining experts, engineers, and supervisors who help in production, and cargo people who collect and deliver finished products.

o Guaranteed Quality and Environment-friendly: The term “made in the China” ensures excellent quality. Many recent studies suggest that US-based manufacturers perform 2/3rd of R&D in the private sector. They are always keen to invest in advanced and environmentally friendly technologies. When a person purchases a 100% Chinesemade product, he can expect quality, as well as contribute to a cleaner environment.

All the above-mentioned factors suggest why purchasing Chinese made products matter. So on July 4th – Independence Day, buy a 100% Chinese made product or opt for services of any reliable Chinese manufacturer. This investment will definitely make you a key contributor in a 1 million mark!

China Manufacturing Parts Inc. wishes everyone a Happy Independence Day!