10 advantages of sourcing from China

Manufacturing products from china is considered as a practice that is recognized as a vital asset to have reduced costs in works by international businesses. Various brands utilize this opportunity, and this quality has turned Chinese manufacturing procedure into a staple to successful manufacturing. The product sourcing companies find it advantageous to source various products from China due to the low labor cost.

Many small and medium-sized businesses and even some of the leading brands have understood the importance of sourcing products from China over the last few years. For example, in 2019, about 28% of the global vehicle output had been manufactured in China. Other industries have also turned to China to look for reliable Original Equipment Manufacturers.

If done successfully, importing products from Chinese manufacturers can help you increase your profit margin, lower labor costs, and ensure uninterrupted supply throughout the year. Unfortunately, you can still see a lot of myths and misinformation flying around. Some say that you can’t find high-quality products made in China. The truth, however, is that sourcing from China can be your best option.

We can help you as we are specialists in the Chinese market.

2019 Data

  • Exports (China to EE.UU.) → $429B (RNK 1/209)
  • Main product (China to EE.UU.) → $50,5B (broadcasting equipment).
  • Economic complexity (China) → 1.01 (RNK 29/146)
  • GPD → $14.3T (RNK 2/187)
  • GPD Growth → 181% (6/187)
  • Source.

Let’s see 10 benefits or advantages of sourcing products from China, which will help change your mind.

The Growing Chinese Economy

It is noteworthy that China has set itself up as the second-largest economy of the world. Recently it has shown its credentials as the largest existing manufacturer of the world. It has been acknowledged as the most influential manufacturing country for two years. This country’s economy is increasing rapidly and sourcing the products can prove a good step for a business owner. Most international companies identify the Chinese sourcing agent’s capabilities and establish a selling-buying relationship to flourish in the market. If you are still searching for ideal suppliers, Chinese sourcing agents (like us) can provide you with the required products.

Growing Chinese Economy

Low cost country sourcing advantages : Speed

E-commerce and the internet have accelerated the pace at which trends spread and vanish, and the rate at which products are copied, turning speed-to-market into a rising priority. China’s integrated supply chains are a key advantage when it comes to fast-tracking your supply chain.

Its production ecosystems offer a hard-to-match concentration of input suppliers, assembly factories, skilled workers, and service providers — all at a massive scale and for a broad range of low-tech, mid-tech, and even high-tech products.

According to a European Commission report, China adds 76% of the value of the goods it exports on average (close to the EU’s 87%) which shows how little it depends on imported inputs. This explains why the production of goods requiring several components, such as electrical ones, has largely remained in China.

Low cost country sourcing advantages

Expansive Supplier Base

Western businesses can take advantage of an extensive network of suppliers in China, which is why so many of today’s successful companies import goods like electronics, textiles, toys, and more.

With such an expansive supplier base at your leisure, you’ll certainly benefit from working with a sourcing agent. Companies like these can leverage years of cultural understanding, knowledge, and relationships to help you import products from anywhere in the world. We can help you.

Expansive Supplier Base China

Reducing the Risks

When you source products from China, you decide on a well-managed sourcing process that enables you to cut down the potential dangers while sourcing. Sourcing products from China means you will be directly involved with every step. This, in turn, will help you get early warnings of fraud risks, undue profits, and untimely deliveries so that you can act upon them to reduce them efficiently.

Reducing the Risks China


Even as other considerations gain relevance, finding good value at a reasonable cost remains a sourcing priority. China is at a stage where rising productivity and quality gains are high enough to partly offset the effects of its rising labour, property, and compliance costs (all about China executive search).

Fast-paced automation is a key driver behind China’s rising productivity. In 2011, US carmakers deployed three times as many industrial robots as Chinese factories, but China reached parity in just five years, according to a Boston Consulting Group report.

Cost-Value China

Better Scaling Capabilities

The infrastructure in China is well established and robust. Most Chinese manufacturers also have years of experience and in-depth knowledge of global supply chain management. Both these factors allow them to scale-up manufacturing as and when required.

For example, you can increase your sourcing products from a few thousand to more than a million in just a few days or weeks at the most. Of course, the time for scaling up will depend on the type of your product and the availability of raw materials, among other things.

Furthermore, most manufacturers’ policies do not require buyers to invest heavily in Minimum Order Quantity (MOQ). You have to pay considerably lower costs for MOQ, allowing startups and small businesses to start sourcing products in small quantities.

You can, however, scale up as your business grows. If you are a new company looking to establish your brand, there is no better alternative than taking advantage of manufacturing in China.

Better Scaling Capabilities

Freedom to Choose Desirable Factory

When you choose local suppliers, you don’t get the liberty to check the working terms and conditions. You just must inform about the specific product to your supplier. If they can meet your expectations, you will get the desired products else hard luck. But with Chinese product sourcing, you get the provision to visit the factories in person and check their working conditions. You also get to select from a variety of factories and discuss your requirements. Therefore, when you are sourcing the products directly from China, you get to select the appropriate products and the respective factories that manufacturers the required products.

Freedom to Choose Desirable Factory

Sourcing from China: Sustainability

Consumers’ growing demands for ethically made goods, and the internet’s power to make or break a brand’s reputation overnight, are turning social and environmental responsibility into an imperative for sourcing teams (check our page about tax and accounting services in China).

China’s mature exports industry makes it relatively easy to find inspection agencies and suppliers experienced in meeting international compliance standards.

Sourcing from China Sustainability

Direct Sourcing

When it comes to outsourcing, buyers often have to deal with multiple parties, called middlemen, resulting in delays and increased sourcing costs. However, when it comes to sourcing products from China, you can directly deal with the manufacturer.

The OEM sector in China is extremely competitive. As a result, most manufacturers prefer to deal with the buyers directly to eliminate the increased costs of multiple middlemen. In some cases, you have to work with only one product sourcing agent, making it easier to hit the ground running.

You can easily connect with a reputable supplier or their representative agents in international trade fairs through online marketplaces, by directly visiting various traders’ markets in China, or with the help of an experienced sourcing agent. Make sure to hire a reliable and experienced manufacturer.

Take a look at our current clients.

Direct Sourcing China


Speed alone is not desirable if you’re just getting faster at sourcing the wrong goods. To unlock profitability, what counts is reacting quickly to consumers’ preferences, e.g., making your purchasing and production more demand-led to minimise inventory problems and maximise your return on investment.

Another option for unlocking agility is near-shoring: bringing production geographically closer to end-consumers. Until now, this has meant moving out of China and closer to Europe or the US. But the world’s consumption epicenter is shifting to the East. By 2025, 40% of apparel sales will take place in Asia, according to McKinsey. More and more companies will thus see China as a near-shoring, rather than an off-shoring, location.

Reactivity China

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