Chinese Culture and Manufacturing

1. Please tell me about China's Culture and People.
2. Why should I Consider Manufacturing in Asia?
3. What Products Can Be Manufactured?
4. What Savings Can Be Expected?
5. How Can I Maximize My Savings?
6. Why Should I Work With Built In China .com?
7. How Can I Be Sure Of Product Quality?
8. How Do I Get Started?

China's recent admission to the World Trade Organization in late 2001, and the publication of the revised foreign investment guidelines in April 2002, have made the Chinese market more open to U.S. companies, although there are still significant challenges to U.S. companies wanting to export into China and sell directly to the Chinese consumers.  

China's infrastructure has come a long way in the past twenty years, and can now support almost any manufacturing need. There are Special Economic Zones within China that specifically encourage and support foreign investment offering favorable tax rates and other incentives. Foreign investment in infrastructure projects continues to be limited by government restrictions, but there is a steady easing of requirements in this area as well.

Manufacturing costs in China are among the lowest in the world, while the quality of Chinese made products is steadily increasing. In 2001, American companies imported in excess of US$102 billion worth of products from China, with China's worldwide exports in 2001 were in excess of US$262 billion. For the same period, China's imports were in excess of US$236 billion, of which US$19 billion was imported from American companies. China seems to not only have weathered the world wide economic slowdown, but is in an excellent position to benefit from  recovery. American companies are increasingly finding they have no choice but to consider moving their manufacturing to China, if they wish to retain their market share and profitability in the U.S.

While most Chinese do not speak English, it is common to find English used during business discussions, and China is engaged in a major program to introduce English language instruction at all levels of education. China is very proud that it was awarded the 2008 Olympic Games, and is making a major effort to demonstrate the progress that the Chinese have made to the rest of the world.

As long as you are able to accept Chinese culture and values within the context of doing business in China, it is a comfortable country in which to do business. While there are political differences between the U.S. and Chinese governments, you will find most Chinese accommodating, friendly, and eager to further business relationships. The major cities now all have large foreign communities, and Americans living in China generally find it quite pleasant. 

Business in China does require American companies to be careful in the business relationships they enter into and not lose sight of good business practices. The following quote is from Thomas Lee Boam, PhD., who is the Minister Counselor for Commercial Affairs at the U.S. Embassy in Beijing:

"China produces the kinds of numbers that get people excited, and indeed, they are exciting. But often what happens with that excitement, unfortunately, is that people tumble into the Chinese market without doing the kind of due diligence that they should. My office probably handles more trade complaints than any other U.S. embassy in the world, and sometimes, we think, more than all of them combined. There are between US$2bn and US$3bn of trade complaints on my desk right now."

Most of the mistakes that American companies make in China result from a lack of careful planning and a lack of awareness of how the Chinese do business. With due diligence, and a sensitivity to Chinese business culture, most companies will do just fine in China.

Here are some links to give you additional information regarding Chinese Culture:

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A: There are many countries in the world that manufacture and export products to the U.S., Canada, and Europe, however, China has  powerful incentives unique to this area of the world.

• Very low labor rates
• Highly trained, motivated, and literate work forces
• Established and dynamic industrial infrastructures
• Stable economies and currencies
• Substantial export experience
• Plentiful natural resources
• Manufacturer-friendly governmental and environmental policies
• Foreign Investment friendly government

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A: Built In China .com exports a wide variety of custom & standard manufactured products that fall within the following categories:

• Healthcare Products
• Medical Kits
• Consumer Electronics
• PCB Electronics
• Microchips
• Memory Chips
• Paper Products (such as rolled paper, paper cups, plates etc.)
• Tooling & Dies (cut products such as gaskets, rubber seals)
• Metal Products
• Plastic & Rubber Products
• Lighting Parts & Accessories
• Electronic Components
• Furniture
• Marble Tile

The chances are good that if you have specifications, engineering drawings, and/or product samples, we can source your product at a lower cost while maintaining quality due to the fact that we also have offices located both in the USA and Shanghai, China. Typically we will find the product for you, get you samples, and do a final Quality Control on all products before they leave the factory.

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A: Our customers have realized substantial savings across-the-board from working with Built In China .com, they have also come to demand only the highest quality of product delivered at the budgeted price, and delivered on time.

Contact your Built In China .com sales representative for a complete quote on any product.

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A: Savings in Asia result almost entirely from lower labor rates, therefore, if you are looking for just one product, or to move complete manufacturing to China, you will realize substantial savings. In China, for example, the average factory wage is under $100 USD per month! As a result, the more labor-intensive and high quantity the production runs, the more you save through manufacturing with Built In China .com.

Contact your sales representative for more detailed information.

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A: An inexperienced company might think that going directly to a Asian manufacturer would result in a lower price than they could get working with Built In China .com. However, over the last 30 years many of our best customers have tried going the direct route first. The following array of mind-boggling challenges are just some of the stumbling blocks to successful overseas production that eventually brought them to us.

• The Language Barrier is a powerful impediment. Some factories will have an English-speaking representative, however, you'll find that their language fluency will vary widely. In addition, many technical concepts, material names, etc. are not easily translated. Built In China .com employs an experienced technical staff based in Shanghai, China who are completely fluent in all languages and regional dialects. We will work to insure that all specifications are understood and observed.
• Finding the right factory at the lowest price. Unlike the U.S. and Canada, China has no reliable Directory or Manufacturing Guides. Finding a factory to make your custom product is often a very time-consuming and futile endeavor. Even if you think you've found the perfect manufacturing source for your product, you'll need to visit the factory at least several times to confirm their capabilities, monitor sample production, and inspect the finished product. The resulting expense in time and money is prohibitive for the average Company. Even if you went through all of the hassle, expense, and frustration of working directly with an Asian manufacturer, you probably would still not be receiving the lowest price. Why? Because Built In China .com has long-standing relationships with a wide variety of manufacturers who consider us their top customer for over 30 years. Built In China .com can obtain the lowest pricing because our manufacturing partners quote us based on our total product volume, not solely on your individual job. Additionally, our inside pricing knowledge together with our policy of soliciting from a number of resources, insures that you will get the absolute lowest price available. Most importantly perhaps is the `relationship factor'. Our manufacturing sources know us and trust us -- a factor that cannot be overestimated when working with relationship-oriented cultures like China.
• Legal responsibility and accountability. When you work with Built In China .com you're working with a company bound by U.S. patent laws and corporate regulations. We guarantee your proprietary products and information will only be used as your company directs, according to the law. When working directly with China, you'll encounter a confusing array of foreign laws and customs that will intimidate all but the most knowledgeable experts in Chinese, corporate law.

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A: When working with Built In China .com you can rest assured your product will always meet your specifications every time.

To give you an example, recently an American company we were doing business with was having manufacturing done both in the US and also in China. He noticed that the reject rate in the US was not in line with the China factory, so he decided to  investigate the situation himself. He found that the US company made a good product but that the final Q/C was being done by 1-2 engineers at the end of the assembly line. When he went to China, the exact same product being manufactured was being Quality Controlled by well over 20 degreed electronics engineers. Obviously, the labor rate is lower, so the Chinese company could easily afford to do this. As our customer told us, he only wanted a high quality product with minimum defects. He finally understood after visits to both factories why the Chinese company was producing a better product with a lower defect rate.

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A: Select one of your high-volume, labor-intensive parts for quotation. You can either send us engineered drawings, and/or provide us with a sample, and we will jump into action immediately. For maximum savings, use a part that is presently produced domestically in your company or another local company. Make sure you have a good handle on the complete cost of the item to be quoted. Remember to add in shipping & handling costs if the part is currently outsourced, or consult an accurate time-study report if the piece is produced in-house.

Forward two copies of specifications, blueprints etc., along with samples to Built In China .com by e-mail, mail or fax. (We accept all CAD/CAM files with .dwg, .dwf, .dxf, .rml, .ipt, and .iam filenames). Metric measurements are preferred, but we also work with English units. 

Include your annual usage, present product pricing, and target price. The more accurate your information, the better armed Built In China .com is to negotiate the lowest price possible. Remember, we're working directly for you as your representative overseas, and hope to do so for a long time in future. Our price quotations are designed to foster long-term relationships with each and every one of our customer-partners.

Finally, contact your Built In China .com representative or send all the information as outlined above to get started right away.

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