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Advantages And Disadvantages About Importing Products From China: Necessary Recommendations


Whenever we see the tag "Made in China" we are reminded that China is a place where goods are manufactured for a fraction of the US cost and distributed to more than a billion potential consumers. Corporate giants like Wal-Mart are investing intensely in China. Thousands of small to medium sized companies are getting in on the action as well. In fact, we can say that 2000 was the decade that got thousands of entrepreneurs to investigate how to import goods from China.

China has enjoyed an average 9.5% yearly growth throughout the past decade, and its Gross Domestic Product (GDP) skyrocketed from $ 300B in 1985 to $ 1,600B in 2004, larger than the state of California. Meanwhile, the foreign trade volume has increased twelve-fold! Foreign direct investment has hit $ 550B during the same period. China's blistering modernization from 1990-2010 made importing goods from China really interesting to retailers across the globe.

The country's first production census found that from 2004 to 2007, the GDP growth rate was of 10% each year. In 2007, the formally recorded GDP growth rate was 11.4 %. In 2008, the global economic crisis started to reduce China's growth rate. To settle the crisis, the government made the decision to pump Rmb (China currency) 4 trillion into the economy as an economic stimulus plan consisting primarily of investments in fixed infrastructure and human capital.

Although in the early September 2009 mainland China was engaged in new trade dispute with the US over the imposition of an emergency duty on Chinese tires, a full-blown trade war is unlikely as this is not in the best interest of each of those countries. Mainland China is the number one creditor of the US, and the US is the Mainland's second largest export destination after the European Union. A trade war between two of the world's leading economies will furthermore be detrimental to the global recovery just underway. China import export is here to stay, for the moment.

Northern Asia commonly (Japan, South Korea, Taiwan, Vietnam, and Mainland China) is a very good place for manufacturing products (Vietnam is similar to China fifteen years ago).

The clear benefit of Mainland China today comes from its low production, workforce and advanced quality control practices, making it by far the most attractive part of the region.

Moreover, bear in mind that Chinese companies will give you with what you ask, even when it is not comply with their production standards. They possess a great capability to create a very unique design by mixing some existing designs you might have submitted to them. While Westerners do not normally like (or are even capable to) adjusting their production standards to special customer requirements, a Chinese company would perceive this a standard feature of their service.

Standardization such as ISO or 6-Sigma is not so common in China, but is followed by the higher end producers. However, regardless of your order volume, quality control with China is a MUST. You need to get what you order and in the exact way you ordered it. From unsophisticated to sophisticated products you should check quality control with Chinese manufacturers. Use multiple QC check points during different stages of production. An importer's worst nightmare is receiving a full container load of products that is defective due to a wrong screw size, for example. If you still try to sell them, or sell products that you don't know was defective and later falls apart, this equals substantial product returns, angry customers, and an accounting/billing department nightmare. As the Supervisor of your own company, you are responsible for making sure that your products satisfactorily meet desired specifications.

Advantages And Disadvantages About Importing Products From China: Necessary Recommendations
The clear advantage of Mainland China today lies in its low production, labor and improved quality control measures, making it by far the most attractive Asian country for importing.

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