If China make bad products, then why do thousands of international companies make their products there?

Question

Virtually every major consumer products company in the world either has its own manufacturing operations in China or contracts production out to Chinese manufacturers. Here is a partial list of international companies that manufacture products in China:

Sony
Panasonic
Samsung
Sanyo
Acer
HP
Motorola
Siemens
Phillips
Apple
LG
Nokia
Hitachi
Fuji
Kodak
IBM
Honeywell
General Electric
Levi's
Lee Jeans
DKNY
Liz Claiborne
Ralph Lauren / Polo
Adidas
Pony
Nike
Puma
Reebok

Answer 1

I am not aware that there is a general opinion of China making bad products. There have been some problems, such as lead paint on children's toys. That does not mean Chain fails to produce quality products. It may reflect that the USA has extremely high standards that are difficult to meet at all times. Manufacturers in the USA have product recalls all the time. It's how everyone keeps their quality high. No offense is intended when a manufacturing irregularity is pointed out. It's just business.

Answer 2

The top news out of China today was about lack of labor after Chinese holidays. Also the big news about foreign companies was the movement of these companies out of China to other South East Asian countries. The cost of labor in China has been on the rise and the cost of materials for production has been on a steady rise. In the Guangzhou area the cost of labor has increased more than 20% and there is a shortage of labor in this same area. Some of the companies in this area are making plans to move inland and north but the majority of companies are making plans to move out of China and into other South Eastern Nations. The article says China's big days have past and now the movement is to the smaller cheaper South Eastern Nations. In 20 years most all of the big exporting in China will be gone to these smaller cheaper countries. As for your attempts to talk as a equal with (NOLA guy) some of the answers here, you are out of your class and it shows. Stick with asking things your handler tells you and you do not look as bad.

Answer 3

Your statement is much more amusing than your weak attempt to cloud everything else. Sure there are good products made in China, there are also bad ones. Your lack of definition and differentiation proves nothing. International companies in China have good protocols, they make sure quality is not compromised for cheap cost. Thorough testing and standard safety measures are met. Local brands in China, most of which are counterfeits have no quality, minimal if any, not even warranty nor safety.



Known local brands in China such as Lining, Anta, Haier, among many others have good business strategy that's why they survived. Haier's story began as near broke bankrupt company, until their business idea shifted from Chinese business style mentality to Japanese style, I suggest you read about it.



Faked and counterfeit items made in China are abundant, they are not from legitimate manufacturing companies and have no quality control. The sellers of these fake items trick buyers because they have very similar designs.



Trick brands and cheap phony faked imitated copycat China brands like SQNY, Mike, HiPhone, Samsong, Tids(Tide), Okay(Olay), among many others, are plain faked packaging or designed dirt cheaps with nothing more than trying to copy known brands without any quality or safety standard at all.



I can put out fake name brands made in China twice the length than what you have. I am surprised at your knowledge of the products you mentioned, you seem to be an intelligent person, would you be so kind enough to tell us exactly which products under each company are actually being made in China? For instance Nike is a brand and company, it has manufacturing sites in at least 6 different countries. Which products under Nike are actually from China?

Answer 4

Cheap labour and material costs. If it were you, would you pay an American $200 to work one day, or pay a Chinese person $200 to work a month? It's all to do with money. A cheap and efficient workforce means more, high quality products are produced to be sold elswhere for a higher profit on the companies part.

Answer 5

Because China's work are productive, creative, and make high quality products. India's labor cheaper if companies are looking for cheaper labor.

Answer 6

Very few countries can compete with China's price. Low prices are largely achieved through an exploitation of its workers - long hours, poor housing, few breaks / holiday, and pitiful pay. This helps to make greater profits for the multinationals / low price (fairly disposable) consumer goods.

Answer 7

because it's cheaper for the companies to produce their products in China

Answer 8

It's the result of a simple case of Economics. For a few decades, foreign-based companies employed low-wage workers in China to produce inferior goods at a cost that could offset the transportation fees. In addition to China's failure to enforce and keep pace with worldwide standards for quality, which has more recently led to a downturn in demand for their products, two key factors are now combining to turn the tide of sourcing in China completely around.



1) Those companies who traded on their good reputation in order to make a quick buck are now losing "brand loyalty" and are currently moving their facilities to other countries where they won't be forced to have the stigma of a "Made in China" label plastered on their products. (Who's worried about something "Made in Malaysia"?)

2) With increasing worldwide demand for oil, the transportation costs for exporting goods from China are rapidly rising.

Answer 9

It's all about QA and QC. What if foreign capitals left there?