Manufacturing and consumption of high complex products, like new energy vehicles, smart phones, drones, and advanced equipment are booming stronger than ever in China. As quoted by McKinsey&Company: “ In this category are sectors such as new energy vehicles, green tech, and smart tech. Smart tech covers many subcategories, often 5G-enabled, from smart cities to smart factories and industrial IoT. In these sectors, China will seek to export not only hardware as usual, but also software, and critically, the standards on which the Chinese products are based.” This will push inevitably for components manufacturing, plastic and metal components, electronics and assemblies, from quality, cost to time to market.
Shoes and clothes are moving out of China, by purpose, while for high complex products manufacturing China is still the perfect destination and this probably will continue and even strengthened along with fast development of robotic system, artificial intelligence, 5G and IoT.
What’s high complex products? Those products consist of two components at least and often involve highly efficient assemblies. Each of these components also needs several production lines to produce. And for small to medium sized factories, who usually cooperate with some sub-suppliers, thus they could concentrate on their core specialties. None of work can be done perfectly without highly skilled and cooperative workers, as well as highly precision machines which are already built over last decades development.
Advantages of unique political system, which not only provides the long lasting stable business environment but also helps China conquer Covid-19 far more efficiently and thoroughly. That makes China the first group among all countries in business resuming from pandemic.
We were very busy in last couple of months, as our suppliers in Ningbo and Suzhou were fully occupied, given the extra orders from its major clients including US. We were a few times on site to make sure our orders are fulfilled without delivery problems.
Filling the gap that other regions made, China as one supply base, is the quickest to recover and support. Needless to say in peaceful time.
Recently, China just announced 2020 edition of the Catalogue of Encouraged Industries for Foreign Investment, with 125 new industries added. The catalogue further encourages foreign investment participation in high end manufacturing and its services industries.More opportunities ahead.
China has huge consumer market and is unprecedented stronger when purchasing power parity is measured, more and more foreign investment is swarming in to gain great returns. While sourcing is no doubt a good option for easier market entry sooner or later for foreign investors and global players. “Starting to develop our own components suppliers from China and learning to work with them can help us better prepare when we decide to have our own presence in China in future certainly ”commented by a German aircraft components maker when we met in 2019 in Germany.
In conclusion: high complex products development builds the foundation for metal components manufacturing; stable and unique political system safeguards your business activities surely, sourcing is a pre-visit and also a warm-up activity for your market entry to China.
A small advertisement, PINTUU, as a Sourcing Service Company, based in Suzhou, China, specializes in metal products. We do supplier vetting, product sourcing, relationship management, order tracking and delivery in both commission based model or trading according to our clients needs.
Having trouble in vetting or audit suppliers in China during pandemic while you can’t travel, drop us a line and let us help you.
PS: Metal products mentioned above are casting, forging, powder pressing, laser cutting, bending, welding, brazing, stamping, machining, with or without surface treatment, sometimes plus assembly. Molds and fixtures are involved for these production.