January 7, 2023

Overseas Manufacturing in China: Advantages and Disadvantages

Do you have plans for overseas manufacturing in China? Are you unsure of the advantages and disadvantages of overseas production, particularly in mainland China? 

Don't worry – you're not alone!

Many companies, especially those in the West, are considering the benefits of overseas production and how it can help them to diversify their supply chain and cut costs.

So, if you plan to manufacture your product in China - now is the time!

Still confused?

Well, we're here to help with this guide on everything related to overseas manufacturers in China! From our experience of manufacturing products and working with Chinese factories over a number of years, we'll share some unique insights into the advantages and disadvantages that could arise. 

But buckle up - because when it comes to offshore production, there's no one size fits all solution; everyone's risk tolerance is different!

Overseas Manufacturing in China – The Reason behind Success!

Do you know why Chinese manufacturers say, "It's not a question of money?"

It's because the major focus of these Chinese factories is to develop long-term relationships with their clients.

They understand that success comes from quality, collaboration, and consistency - not short-term profits!

It's hard to find a product these days that hasn't been made in China at some point in its production journey. 

So what's the reason behind China's success in the manufacturing game? 

Let's delve a little deeper!

The secret to their success lies in their ability to produce quality goods on an unprecedented scale at incredibly low prices. Not only this, but after the "Made in China 2025" initiative, China is actively investing in technology, infrastructure, and green manufacturing processes, which has further cemented its position as a leading global supplier.

The Hidden Side:

Wait - you only hear one side of the story!

Manufacturing in China isn't all sunshine and rainbows. It's only easy for those who know the potential risks and solutions associated with overseas manufacturing; those unfamiliar with the process can face some serious pitfalls.

It's always important to weigh the pros and cons before making any decision. 

But still, the question remains - "What are the pros and cons of overseas manufacturing in China?"

But before we jump into the nitty-gritty, if you want to learn more about how to get your product manufactured in China - Check our latest post!

Latest Post: Offshore Manufacturing in China

5 Major Advantages of Overseas Manufacturing in China

You might know most of them, but wait - do you really know them in detail?

Starting with the positives, here are the five major advantages of overseas production in China.

1. The market of Skilled Professionals

China is home to a huge talent pool of skilled labor, engineers, and scientists with years of experience in various industries. This means that the Chinese factories you partner with can quickly assemble a team to meet your requirements and produce quality products.

The Bright Side:

Ever wondered why most of the big brands have Chinese professionals working for them?? 

It's because Chinese universities are churning out some of the best engineers in the world! Plus, due to their excellent technical expertise and knowledge, they are unbeatable.

Now, if you are a startup, you must be thinking - can I also take advantage of this?

Yes, you totally can! 

Not only international brands but startups and SMEs are also looking toward the Chinese workforce to make their dreams a reality. 

In an interview with Protocol, Mr Jack Yaang, (CEO of a stealth video fashion shopping startup in New York) says, "I didn't plan to build a Chinese team, but I couldn't find anyone with the same level of expertise in the U.S. That's why I filled multiple positions in my company with Chinese engineers, data scientists, QA engineers, and product managers."

A Tip:

While you are looking for a reliable overseas manufacturing partner in China, ensure that your partner has a pool of highly-qualified and experienced professionals who can provide the necessary support for your product at every stage of the production process.

2. Extensive Range of Manufacturers

In China, you will find a vast range of manufacturers, so it's possible to find the perfect one for you.

Whether you need a small-scale factory with fewer workers or a large-scale factory with automated production lines, you will find it in China. 

The Best Part:

Do you know what the best part is? 

More manufacturers mean more competition. And when there is competition, the manufacturers are bound to offer competitive prices and better quality - that's what everyone needs!

But wait - we say, "It's possible to find the right manufacturer" we didn't say "It's easy!"

The Other Side:

There is no doubt that the Chinese market is a treasure trove of manufacturers, but it can be tricky to find one which suits your requirements. With so many factories scattered around the country, the process of finding the right one can be tedious and time-consuming.

As most Chinese manufacturers offer similar services, how will you know which one is right for you?

The Trick:

It's always recommended to list all the requirements and compare different manufacturers based on their services, quality standards, pricing, etc. This will help you narrow down your search and make the right decision.

And what if you don't have the time to do all the research?

Well, in that case, you can seek help from a reliable sourcing company like MorphoMFG, which can do all the legwork for you and help you find the perfect overseas manufacturing partner in China.

Interested in learning more about finding a suitable manufacturing partner in China - Check our latest guide!

Latest Guide: China Manufacturing Companies

3. Affordable Product Manufacturing

Getting your product manufactured affordably is one of the biggest advantages of overseas manufacturing in China.

But don't get us wrong - "affordable" doesn't mean "cheap".

A Point to Consider:

Still thought about China in 2010 - cheap products, inexperienced labor, and under-develop infrastructure with old equipment?

Think Again - times have changed! 

China is not cheaper anymore. But still, it's the most affordable option among other countries in the same league.

Modern Chinese factories are well equipped with the latest machinery, impeccable quality control system, and experienced professionals.

The Main Point:

Affordable manufacturing in China has enabled companies worldwide to source their products at lower costs - resulting in improved margins.

Manufacturing in China also allows businesses to scale production while maintaining quality control standards rapidly. By taking advantage of these cost savings, businesses can increase their profitability and expand their market reach.

Avoid This:

Most fake manufacturers take advantage of the situation and offer ridiculously low prices. So beware - don't fall for this trap!

Instead, take your time and carefully evaluate all the manufacturers to find the one that meets all your requirements - be it quality or price.

The Right Way:

Partner with a Chinese contract manufacturing company, and they will provide you with the best pricing due to their direct contacts with the manufacturer - and secret negotiation skills as well.

Still Curious?

Planning to get your product manufactured in China but don't know how much it will cost?

Don't worry - Check out our pricing guide!

Pricing Guide: Manufacturing Costs of Custom ODM Products in China

4. High-Speed Production Capacity

You probably won't wait for months to get your product manufactured - Chinese manufacturers are known for their high-speed production capabilities. 

With the help of advanced machinery, modern technology, and a skilled workforce, Chinese manufacturers can produce a large volume of products quickly.

We know how much being out of stock hurts and affects your business reputation. Now you don't need to worry about your tight deadlines while offshoring to China. 

Will it cost more?

Now you might think that this high-speed production will come with a hefty price tag, but that's not the case.

Most Chinese overseas manufacturers offer flexible pricing options that work within your budget. And once the pricing and quantity are agreed upon, they can deliver the end product within the predetermined time frame.

Want to know more about mass production in China - Read our related blog post!

Related Blog Post: Mass Production in China

5. Easy Access to the Global Market

Every business owner knows how hard it is to penetrate the global market. 

It's no wonder why so many companies look to China for their manufacturing needs - after all, it offers some of the most seamless access to the global market. 

But how?

With Chinese factories popping up throughout cities, businesses can have their products produced and shipped not only quickly but also safely and securely. 

The Right Way:

Before handing over the production of your product to a Chinese manufacturer, check that they hold a valid custom number and a reliable logistics partner.

This will help you avoid any issues with customs clearance and ensure that the product gets to its destination without any hassles. 

A Tip:

No one wants to end up with a huge bill for customs duty and hidden charges. 

So, it's best to talk to your Chinese manufacturer about the shipping process and their policies - like the shipping cost, taxes, duties, etc.

Also, don't forget to mention everything in the contract, including the cost, responsibilities of both parties, delivery date, etc. This will ensure that you get what you paid for! 

Important Note:

There is a hidden thing that manufacturers avoid discussing - how will you ensure the quality just before shipping? 

Although Chinese manufacturers are known for their quality control systems, it's still important to check the samples before they get shipped. 

For this, you need a qualified export and quality control agent in China.

We know what you are thinking right now, "Can a contract manufacturer do this for me?".

Well, yes! 

By partnering with a Chinese contract manufacturer, you will get all the services, from manufacturer onboarding and production to quality control and shipping - all in one package!

However, if you also want to learn more about finding a Chinese export agent - Check our related blog post!

Related Blog Post: China Export Agent

Top 3 Disadvantages of Overseas Manufacturing in China, along with their Possible Solutions

"Every cloud has a silver lining."

Likewise, while overseas manufacturing in China offers a lot of benefits, it also comes with some potential risks. 

But don't worry - Only the ones who don't know how to manage risks come out empty-handed. 

Here are some possible cons of overseas manufacturing in China - along with their solutions!

1. Lack of Control over Certain Things

While working with an overseas manufacturer in China, you don't have control over certain things such as quality control, production speed, delivery time, etc. - it can be frustrating!

The Solution:

While quoting their previous failure stories, our clients told us that they don't know how to control the above-mentioned factors without being present on the manufacturing premises.

In reality, you don't have to be there to manage things.

Then what's the solution?

All you need to do is pick the right contract manufacturer who will manage everything on your behalf - from product design to production and shipping! 

But is it really worth it?

Yes, they have an established team of experts who know what works for your product and how to maintain the quality throughout your whole offshore manufacturing process. 

2. Safety Concerns

Yes, it's true that, in some cases, offshore manufacturing may come with safety concerns. 

It can be in the form of product safety, quality assurance, and compliance. 

You might be worried about IP protection or product quality, but here's the good news - it's now manageable with MorphoMFG!

The Solution:

IP theft is not common, but when you are in a pool of thousands of manufacturers, you never know what's lurking around. 

It's just like not leaving your door open even if you are at home.

We are not saying, "Manufacturers in China are not reliable, what we are saying is - it's always better to be safe than sorry."

Fortunately, MorphoMFG uses an advanced "Component Control Method" for IP protection and ensures that your designs and data are safe throughout the process. 

Just think for a moment!

What would you prefer - sending your design files to hundreds of Chinese manufacturers or just to one trusted contract manufacturer? 

We think it's pretty clear! 

3. Cultural & Language Barriers

"Communication is the key to success in the manufacturing business."

Without effective communication, you can't just expect extraordinary results or a smooth process. 

Also, the Chinese business culture is different from Western countries, so that you may face cultural barriers. 

If you think your huge investment will help you fix these issues - think twice!

It won't.

Then what will be the possible solution?

The Solution:

Companies must be aware of Chinese laws and regulations when working with a Chinese manufacturer. This includes understanding labor laws, environmental regulations, tax codes, and more. 

The Main Thing:

You need to know that manufacturers in China prefer communicating in their native language. 

And if you don't speak Chinese or they can't understand English - things can be really tougher!

But that's not the case with MorphoMFG. 

The company has a team of experienced professionals with expert knowledge in both English and Chinese. So, you won't have to worry about cultural and language barriers with us!

Ready to Go with an Overseas Manufacturer in China – Don’t Overlook MorphoMFG

All in all, working with overseas manufacturers can be a great way to save costs and time. 

And MorphoMFG offers you the perfect solution - from quality control to IP protection and language barriers. 

So, don't worry about overseas manufacturing anymore! 

You don't need to find dozens of third-party service providers to manage your product quality, logistics, or other related issues. 

What if we told you - all these solutions are manageable under one roof?

Simply choose MorphoMFG as your ideal contract manufacturer, and let us take care of the rest! 

We have +7 years of experience in overseas manufacturing with several physical offices in Guangzhou, China.

What will you get at MorphoMFG?

MorphoMFG is a fully compliant contract manufacturer that offers you complete assistance throughout the entire process, including:

  • Consultation & Onboarding

  • Product design & prototyping

  • Mass production

  • Quality Control

  • Shipping & Logistics

So, why wait?

Schedule a call and start your overseas manufacturing journey with us now! You can also visit our homepage to learn more about our services. 

Let's make it happen! 

Frequently Asked Questions

• Who is the Best Overseas Manufacturer in China?

There is no doubt that there are hundreds of overseas manufacturers in China. However, which one is best for you completely depends upon your requirements.

One might be a good choice for electronics manufacturing, whereas another might be better for luxury watches.

The Right Way:

At MorphoMFG, we will help you find the right manufacturer for your specific needs and provide you with best-in-class services. Due to our vast experience, we have hundreds of onboard manufacturers that we shortlist after several test runs.

So, don't worry about the product quality or delivery. You will get the best possible solutions and services at MorphoMFG!

• Is Manufacturing in China Safe?

Yes, manufacturing in China is absolutely safe until preventive measures are taken.

Being a business owner, you also know that every market has the several ins and outs - the same in the case of China!

You just can't overlook safety concerns just because you think the market is safe.

The Hidden Side:

Manufacturing in China is safe, but several fake companies may exist that offer you counterfeit products or fake services. They took advantage of the trust developed by genuine manufacturers and used it to scam new business owners.

The Solution:

At MorphoMFG, we have the best-in-class manufacturers on our team. We conduct several quality and safety checks before bringing them on board. 

So, if you partner with us for your overseas manufacturing project in China - we will take care of everything from product manufacturing to shipping!

Why wait? 

Schedule a call with us now and let the experts take care of your manufacturing concerns.

About the author

Josh Fairbairn

CEO of MorphoMFG, fluent in Mandarin, Blogger, and Youtuber. Josh loves interesting materials and the craftsmanship that goes into creating innovative products - watches, tech, games, whisky, leather, wood, blockchain & electronics. Josh and his team in Guangzhou, China are striving to create (& consume) the world’s highest quality products. Partnering with entrepreneurs globally to help solve the world's problems - whether small or large.

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