B-L-D Advisors

The quality of Made in China Mechanical components

The quality of Made in China Mechanical components is generally under-estimated.

Chinese mechanical components manufacturing is the larger player in the world, but there are problems with the quality. China’s production of industrial products far exceeds its domestic consumption and exports.

For example, China produced almost 50% more cars last month than Europe did combine. That means that China made about three times more automobiles last month (about 19 million vehicles) than the rest of the world put together(12.7 million units).

China’s economy has grown rapidly since 2000 and the country currently accounts for 20 percent of global automobile sales. But, despite having doubled annual economic output in recent ten years, Chinese auto companies’ profitability remains low due to a dearth of advanced technology and skills.

Made in China is becoming synonymous with cheapness due to the lower wages offered in comparison with developed countries. Therefore some manufacturers are looking away from labor-intensive production processes and instead focusing on design and assembly methods that require fewer workers and therefore cheaper production costs. (automation)

Because of the demand for manufacturing products that are environmentally friendly and safe to consume there is an opportunity for consumers to enjoy products produced by developing economies without sacrificing the quality required by western markets.

Mechanical components have become important worldwide since the 1970’s due to rapid globalization. Today, mechanical component parts account for approximately 18 percent of total exports globally. And most the global products now contain some Chinese brand names such as Lenovo, Apple, etc.

China has produced electronic devices for decades and now manufactures computer screens for Dell, HP, etc. Moreover, China produces medical equipment like surgical equipment, CT scans, and MRI machines.

A number of manufacturing sectors based in developed markets face challenges associated with rapid globalization, particularly the threat posed to jobs due to the offshoring of production. The recent slowdown in emerging market economies and the increased focus on productivity also contribute to global economic uncertainty.

Having weighed up all arguments, we can conclude with certainty that Chinese companies do produce much more products than others with rapidly quality improvements and it would be unwise to forget this fact altogether. That being said, we must keep in mind that despite the low initial cost when starting a company, the long-term risks associated with investing your capital are uncertain.

With almost 30 years of experience, B-L-D Consultants in China can greatly reduce the risks associated with the start-up and development of manufacturing activities in China. The metallurgical and mechanical, valve, and oil and gas sectors are our specialty.

Feel free to contact us for an expert consultation.

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