Why is Everything Made in China

You may be surprised to learn that everything from your favorite toys to your furniture to the clothes you wear was made in China. It’s true, and it’s been happening for decades! There are several reasons why nearly everything we buy is made in China, and they go beyond just the simple fact that they have cheap labor there. For one thing, it’s easy to find suppliers there – there are more than 3500 of them, including more than 25% of the world’s top 500 companies!

The Top  Reasons why everything Made in China:

 As you might know, there are plenty of reasons to buy things made in China. With its massive population and rapidly growing economy, China has become one of the biggest economies in the world, and it continues to rise every year. This article lists the top ten reasons why everything we buy can be considered Made in China.

•  Low cost labor in China:

The biggest reason everything gets made in China is simply that it’s more affordable. Low labor costs make goods produced there a better deal than goods produced elsewhere, even when you factor shipping and distribution into your equation. In 2004, CNN reported that a pair of Nikes made in America would have cost an extra $22; Gap found that its jeans cost an extra 70 cents to produce domestically versus offshore. Even if American factories were as efficient as Chinese ones (which they aren’t), it wouldn’t be worth paying so much more for them. In a global economy where prices are going up everywhere, factories outside America are a smart choice for maximizing profits.

• Safety Concerns with Chinese products:

         In recent years, news outlets have reported on a number of safety issues associated with Chinese goods. From contaminated seafood to dangerous toys, many people have voiced concerns over whether or not they can trust Chinese products. The fact of the matter is that most Chinese companies want to offer a good product at an affordable price. But once something passes through several different hands-on its way from design to store shelves, how do you know what you’re really getting?

• Cheap inputs:

The cost of goods sold is a fundamental element of any business’s profitability. On average, goods made in China are around 75% cheaper than goods made elsewhere. For multinational corporations, every percentage point counts when you’re looking at total profits; it could mean hundreds of millions of dollars each year. For example, General Motors saves an estimated $35 million each year from manufacturing some of its parts on Chinese assembly lines because Chinese inputs are significantly cheaper than labor and logistics for parts manufactured elsewhere—even in countries such as Mexico and Canada. In light of these savings, GM has already set a goal of having 80% of its parts come from within North America by 2016.

• Imports are cheaper:

Our goods are made in China because it’s cheaper to make goods there. The more a country imports, particularly from a single country, generally speaking, the more it means that those goods will be cheaper due to economies of scale and lower shipping costs. Chinese workers also tend to work for much lower wages than people in developed countries like America, which also contributes to a lower cost of production and importation.

• Environmental Impact of Manufacturing:

The environmental impact of manufacturing varies widely based on location. Some factories are clean and safe, while others might not. From a health perspective, it’s important to examine air quality, water quality, worker safety, carbon footprint, and resource consumption when deciding whether you want your products to be made domestically or internationally. Whether a factory can operate sustainably could be an indication of its commitment to quality. Suppliers that make environmentally friendly decisions demonstrate an awareness of their impact on natural resources and nearby communities—as well as their customers’ values. When you work with suppliers that consider sustainable manufacturing Importantly, you create a mutually beneficial relationship in which your interests align from day one.

• Transportation Time and Cost:

There are 300 million people in the U.S. spread over 3 million square miles. Moving the US around and getting things from one part of America to another, it’s going to take a lot of fuel and a lot of vehicles—not to mention them being shipped back and forth across thousands of miles. So it’s safe to say that transportation accounts for half of the total cost for Made in China products.

• Small quality Control Issues:

When you purchase a product made in China, there’s a good chance it will work as advertised. However, there’s also a good chance that minor quality control issues – such as tiny blemishes or misalignment – will exist. Buyers need to remember that products made in China are often manufactured with large numbers of units (thousands), so small defects are quite common. These issues don’t affect the use and rarely affect appearance.