For many years now, China has been seen as the place for businesses to operate their manufacturing of products. China is a vital trading partner for many countries and has been providing valuable labour to a large percentage of the global market. Being the most populous country in the world, it is no surprise that China has the resources to become such a large player in many industries. There are many reasons why large businesses should be operating in China.
China is one of the recently updated ‘BRICS’ countries. Along with Brazil, Russia, India and South Africa, China has one of the fastest growing economies in the world. The BRICS countries are believed to be the dominant suppliers of services, manufactured goods, and raw materials by 2050. Given that China is already a leader in these fields, and with research to suggest they are to continue growing at a rapid rate, it is clear to see that China is going to be a dominant force in raw materials, manufacturing, and services.
China is already one of the world’s largest manufacturers. Given that they are a BRICS nation as well, it is predicted that China will be the place for manufacturing, from now, and for many years. Many businesses already take advantage of the manufacturing in China, and this number is expected to grow. One reason for this is the cheap labour costs. Although this is well known throughout the world, many operations add to their costs by paying for overseas shipping; this reduces the profit margin for each product.
Another reason to operate in China, especially if you are in the online retail sector, is the rate at which the market is growing. China’s online retail sector has been growing rapidly in recent years, at an even faster rate than the US. Research suggests the numbers are going to continue rising, as studies have shown that the market is nowhere near saturated yet. A continual, rapid incline implies potential for an above-average profit growth for many years to come.