China, where we are going? A new era for trading, cooperating, manufacturing in China Companies that continue to base their manufacturing strategies solely on China’s rock-bottom wages and stratospheric domestic growth rates are in for a rude awakening. New challenges will require new competitive priorities. China’s emergence as a manufacturing powerhouse has been astonishing. In seventh place, trailing Italy, as recently as 1980, China not only overtook the United States in 2011 to become the world’s largest producer of manufactured goods but also used its huge manufacturing engine to boost living standards by doubling the country’s GDP per capita over the last decade. That achievement took the industrializing United Kingdom 150 years. Today, however, China faces new challenges as economic growth slows, wages and other factor costs rise, value chains become more complex, and consumers grow more sophisticated and demanding. Moreover, these pressures are rising against the backdrop of a more fundamental macroeconomic reality: the almost inevitable decline in the relative role of manufacturing in China as it gets richer. Rising factor costs Rising wages and the appreciation of the renminbi have dampened China’s exports in recent years and focused global attention on its future viability as a low-cost manufacturing center. Most multinationals that produce labor-intensive goods, like textiles and apparel, are actively seeking to diversify beyond China to reduce costs and mitigate political and supply-chain risks. China-based processors of goods such as beverages, fabricated metals, food, and tobacco are also concerned about rising costs, including those for packaging. Yet their regional focus makes this less a global competitive issue and more a question of which players in the value chain will create the most value. (Mc Kinsey&Company) Despite of these facts, we still can setup profitable cooperations and also work with competitive prices!

Development Projections Support Marketing Trading

Competition A number of Chinese Companies are offering their services in different countries, however your personal representative is not in China. We are well networked directly in China. We have cooperations and also production places under our supervisory, what is still important for long-term quality. Also our projects in China are controlled by our staff.

IES International Economic Service a branch of ImmoPro Bau GmbH