China sourcing has been the focus of international business & trade in recent times. Even matured, brand conscious markets of US and Europe now prefer sourcing from China as China offers high quality products (equivalent to the brand products) at fairly competitive and cheap prices. This is one of the major factors influencing many international companies to open dedicated office in China so as to source the best quality product, or have approached through sourcing agent companies like Grand Bright Asia Ltd..

Another factor that has given a boost to China Sourcing is China’s entry into World Trade Organization (WTO). This has opened the doors for foreign companies in China to have more trading rights and greater access to markets. This has encouraged companies to evaluate business opportunities into new industries for sourcing from China.

However, China import trade has been drained of profits in the last six-seven years. People in India have been wary and skeptical about cheap Chinese products in the market, as they considered them to be of inferior quality. Some Business men’s trade mentality of cheap products has brought a bad name to Chinese goods in India. But, why are the most progressive markets of US, Europe and Australia manufacturing, sourcing and buying from China? It is because if you source products from reliable China suppliers at fair and ‘reasonable’ price, then you can get the best quality product and that too at cheap prices.

But, it has always caught the fancy of customers and businessman alike that - How does China manufacture quality products at such low costs. Why Chinese goods are cheap compared to any other market in the world?

The main fundamental to cheap prices for Chinese products is its relatively inexpensive labor cost. There is a vast pool of unskilled and skilled labor in China who caters to the mushrooming manufacturing and allied industries. It is estimated that the labor cost for hiring well educated professionals in China is at 10 percent of the cost of hiring professionals with similar skills and knowledge in Counties like Japan or US.

However, China’s advantage over other countries in product sourcing is

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Investment environment: 

Favorable investment environment, political stability, free economy and China’s entry into WTO has made China sourcing a prospective business opportunity.

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Promising industries: 

Abundant natural resources, good agricultural output, dynamic industrial infrastructures and promising industries in the manufacturing, building and infrastructure, textiles & apparels; consumer durables and electronics are the basis of successful sourcing from China.

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Enterprising locals:

 Chinese workforce, both skilled and unskilled are hardworking, literate, motivated and highly trained for executing high precision jobs in the manufacturing industry

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Global quality standards- cost effective prices: 

The use of cutting edge technology, availability of competitive skilled labor at lower costs, considerable export experience, better transportation facilities and professional logistics management available in China are attracting more and more multinational and sourcing agent companies to expand their operations in China.