Production in China “Made in China” are the three words that can be found on many technical and fashionable products all over the world. But what seems trivial to many people hides a long and equally important story that production in China . Whether the DVD player, the computer or the dress from a clothing store. Almost all of these goods now contain at least components from China, showing that production there is a global business.
This is the reason why people in China are now talking about so-called “cadre capitalism”. This term means that China is now tending more from the planned economy to the market economy, also due to numerous foreign private entrepreneurs, but this one is[die Marktwirtschaft] not freely, but in part still controlled in an authoritarian manner, so that one speaks of cadre capitalism.
the Production in China continues to increase. In 2003, exports of manufactured items generated just 438 billion US dollars; in 2010, the figure was 1,580 billion. This is an increase of almost four hundred percent, which speaks for a greatly increased production in the country of the Great Wall of China. The People’s Republic is currently the export world champion.
However, numerous private entrepreneurs from abroad, especially from industrial nations such as Germany, France, Great Britain or the United States of America, started to relocate their production sites from their home country to Asia at the beginning of the 1990s and at the turn of the millennium. The production in China was thus pushed further and more and more people were employed. As a result, the words “Made in China” can now also be found on many products from established German companies.
But the products finished in China are not necessarily cheaper. In a study conducted in 2008, the auditing company “PwC” found that every third company in Germany no longer paid for Chinese products because some companies could get the products cheaper in Germany. However, due to the mass production in China, companies are sometimes forced to buy there, since there are sometimes not enough articles in Germany. According to the study, the costs are incurred by the companies due to the transport and the inspection of the items by German employees, since the Chinese do not control production optimally and defects can sometimes occur quickly. Nevertheless, 75 percent of the German companies based in China are of the firm opinion that China as a location will continue to gain in strength and importance in the coming years.
If you consider that towards the end of the 1960s China was still an emerging country with only little production, it is astonishing how quickly the country was able to rise. If you look at various statistics, you can see that the former “second world country” now produces the largest percentage of shoes in the world. Compared to mobile phones, however, shoe production is still low. 75 percent of the items sold worldwide are made in China. Even the waterbed production continues to increase in the Asian country. Although China is not yet the leader here, if you look at how much smaller the ratio is now regularly becoming, the country could soon be at the top here as well.
reason for the high production in China is that a shoe worker there earns an average of 100 euros a month, which is a lot of money in some regions there, which allows companies to save many times over in contrast to German workers.
the production in China is now the largest in the world, but China, as an even larger production country, is a realistic vision of the future, because the numbers there will continue to rise.