China-US Relations Benefit Trade

Few world economies have experienced as much growth as the U.S. and China's over the past few decades, having both grown and as a result, both countries trade has been developing as each recognizes the benefits of partnering together, specifically in manufacturing. 

While each nation tends to focus on different industries, each also have enough similarities that many industry leaders have developed robust partnerships that can benefit both sides. China has become America's second largest trading partner, its third largest market for exports and its largest importer. American businesses and investors recognize the potential in Chinese manufacturing due to its giant workforce, proximity to raw materials and rapidly developing infrastructure. 

China Economy Still Strong

China was fortunate to emerge from the recent global financial crisis relatively unscathed though the economy slightly slowed after a Shanghai stock market crash and has been recently affected by the fluctuating oil and gas prices. Despite all these obstacles, the Chinese workforce and overseas trade is as strong as ever.

A recent report with data from both American and Chinese data by the U.S. Business Council revealed that the U.S. has now become China's largest trading partner due to overseas manufacturing based in China. This is good for the overall United States manufacturing industry. While many still view Chinese made products and trade with skepticism due to several common negative perceptions Chinese manufacturing output has remained stable. While inflation rose 33% from 1995 to 2008, manufactured goods experiences a 3% drop in pricing over the same period.

In addition to the low prices of manufactured goods, also benefiting domestic manufacturing companies is the ability to stretch wages through outsourcing manufacturing. Because of the low cost of Chinese manufactured goods, products are able to restrict inflation and American companies salaries in the manufacturing industry experienced high to moderate growth as well. 

Benefit from Chinese Manufacturing  

Countless U.S. companies are benefiting either directly or indirectly from outsourcing their manufacturing to China. Because of China's vast labor force, factories can produce goods at a lower cost. Mass market products and other detailed product lines, specifically, can significantly reduce manufacturing expenses in order for domestic companies to remain competitive in other markets. In addition, many U.S. business have been able to cater to different international markets with their own exports, manufactured and shipped directly from Chinese factories and ports allowing the business to expand their operations. 

With enough knowledge, any company is able to partner with a proven and reliable organization that can help foster relationships with Chinese manufacturers to produce new items in the market. While cost is a significant benefit, speed is another that will help businesses. Startup business, for example, rely on scaling manufacturing quickly. China is the fastest option in the world. Close proximity to global ports and a vast home to natural minerals and raw materials in addition to a huge labor forces means that Chinese manufacturers are able to produce practically any items in mass and quickly. 

Overseas Manufacturing Mutually Beneficial 

Though Chinese and U.S. relations have experienced past and recent periods of distrust over the better part of the past century, today, the relationship between Chinese-American business partnerships are as healthy as ever. Because both sides recognize that mutual trade is beneficial for many organizations in both countries, trade is growing and many businesses are making good use of the other's resources. Chinese factories benefit from the U.S. demand for manufactured goods, while American manufacturing take advantage of one of the world's fastest growing economies.

If you are considering in outsourcing your manufacturing needs overseas, look no further than China. Partner with a trusted and reliable organization with proven results. We can match you up with a partner that provides the expertise necessary to make your transition to overseas manufacturing smooth and profitable. 

Contact one of our trusted partners and contacts and get started with your own Chinese manufacturing efforts today!