China is a developing country experiencing economic growth. This country is blessed with a convenient global location, enabling trade with surrounding countries. It has transformed itself—and the world economy with it by making things and selling them to the global markets. In 1992 it produced less than 20.8% of global manufacturing output by value; its share now is nearly a quarter. Most of our day to day products are ‘made in China’ products, such as air-conditioners, mobile phones, and shoes are manufactured in China. The growth of China’s populace has formed supply chains that reach far into South-East Asia, Europe, and Africa.
Many individuals have a misconception that Chinese products are not worth more than a cheap price tag. It is viewed that the Chinese products are of low quality in execution, and are not made to last. However, recently it has been demonstrated that Chinese goods are benefiting business all through the world and have figured out how to ascend to the desires of the clients.
Individuals from different zones are utilizing a broad range of Chinese products and are satisfied with the results. Made in China products have an enormous impact on the world, to different continents such as in Africa and Europe.
Lower the cost of Living
‘Made in China’ has lowered the cost of living for many people in the world as they now can afford to buy things they weren’t able to buy before. This is true in Africa, which receives most of the Chinese products. Some argue that this is just product dumping from China and will stunt the growth of African industries. However, the rise of African industries is ideal for UN’s combat against global poverty. Made in China contributes most in the fight against poverty in the world.
The ‘made in China’ lowers the cost of various products, especially electronic parts, machinery, standard daily products (toys, kitchenware, stationery, cloth, and textile, etc.) Thus allowing people around the globe to buy what would have been not affordable to them previously.
Creation of new markets
There is a progressive increase in new markets for the overall human production and not just of what is being manufactured in China, but of smaller markets as well. This has lifted the living standards of most people in these markets, therefore suspending the arrival of a new tide of crisis, the “production surplus.” Chinese products have tainted the name of all the goods that are exported from China as it is seen as being inferior quality.
At the same time, ‘made in China’ has enabled the country to possess the capability to industrialize smaller countries, and it is sometimes willing to do just that: one example is Ethiopia (in the process). This is not the traditional transfer-like way, but with the whole package involving administrative resolve and direct/indirect foreign aid.
For many people, the “Made in China” label has become synonymous with low-cost and low-quality. But the stereotypes often associated with those three simple words didn’t always exist. There was a time when people enjoyed products from China. They viewed products, such as tea, furniture or dishware, as unique. It was a quality product, and there was a cultural value. But when China became a world factory and produced so many items for so many brands, people views shifted.
For one, China started producing cheap quality products to match the excess supply in their country and the excess demand for their products from other countries thus, compromising on the quality of their products.
Chinese producers will do whatever they need to grab a piece of business, but from there, the relationship often goes downhill, although in small steps. “Quality Fade,” the quiet and incremental degradation of a product’s quality over time, is one of the more common issues. Some manufacturers in America have been complaining lately of the quality products.
Much of the problem is cultural. Suppliers in China Chinese believe that what an importer doesn’t know won’t hurt him. They alter product specifications without asking, and they believe that it is better to beg forgiveness than to ask permission. Quality is perceived as a barrier to greater profitability and quality issues are not openly discussed.
Industrial transfer leads to industrial hollowing
Some people in previous industrial countries lose their jobs; individual countries previously produced things are forced to either “upgrade” themselves (to financing or hi-tech innovation) or watch themselves wither. Another way is to retreat to their inherent advantages, possibly exporting resources. A good example of this is in Africa where China owns about 82% of foreign investments in some countries.
By continuing to export their products to these African countries they are slowly killing the local manufacturing industries there as people now prefer to purchase the ‘made in China’ product that the one produced locally.
More importantly less developed countries are stalled, China will not easily transfer its industry in turn because it is making the transfer happen within its land, generally from the eastern coast to western inland, due to its massive size and population.