In the past China has always been known for manufacturing different products that are being sold in different markets, the products that were made in China and are still being made in China stretch from shoes, bags, clothes, gadgets and even car parts. A lot of these products are made in China only to be shipped and supplied to companies from different countries. Companies have always chosen to have the manufacturing of their products in China because of the cheap cost of goods and labor.
Things such as population, cost of constructing the factory and overall cost of raw materials are some of the reasons why the manufacturing industry of China was booming. Today with the slowing down of the economy of China the manufacturing industry and labor sector have also started to decline. When it comes to labor, Chinese companies are having a lot of trouble with their workers and the manufacturing industry of China is no longer profitable as it was in the past.
In light of everything that has been going on in China including the economy, manufacturing industry and Labor their government has now created a program which is ‘Made in China 2025’. This program by the Chinese government hopes to bring back the manufacturing industry of China to be able to create more business. Since their manufacturing industry has started to slow down a lot of these international companies have found other countries where manufacturing is cheaper compared to that of China. Even though this program is supposed to bring back the manufacturing industry a lot of problems have started to surface which has made things harder for the Chinese government.
Since China wishes to bring back the glory of its manufacturing industry it has started to support local manufacturing industries which has made things harder for those companies who are also in the Chinese market. The problem here is that these foreign investors would be having a hard time with the support given by the Chinese government to its local businesses this is also bad because it could result in the foreign investors pulling out if they are not able to profit from their investment.
Another issue met by the manufacturing industry of China is that their technology may not be advanced enough to cut costs and produce the products being demanded at the quality these high tech equipment are able to do. The problem here is that the Chinese manufacturing industry has always relied on its cheap labor in order to deliver goods at a lower price. The competition today is to be able to manufacture products with as little people as possible which mean fewer jobs for the Chinese people.
In order to solve the problems of China with its manufacturing industry it is important for the government to implement policies that would help the manufacturing industry but at the same time would not hurt other entities such as the workers, foreign investors and other business in the country. Another factor that could help China on its road to developing its manufacturing industry is its business relations with other countries.
Recently China has been creating a lot of issues especially with a territorial dispute with surrounding countries and its issues with Japan regarding the Nanjing Massacre. Such issues especially those that involve conflict with other countries are the type to drive off business and investors which could make things harder for the goals of China in reviving its manufacturing industry. The important thing here is to be able to update their technology and policies in order to redefine the manufacturing industry to make it as profitable as it was in the past.