Mr. Ren Hongbin, Vice Minister of Commerce of PRC told the press on 30th Dec 2021 that China’s foreign trade expected to reach $6.1 trillion for the whole 2021. The second largest economy remained strong with an 8% GDP growth rate in 2021.
Though many economists and political analysts tend to take relative doomy positions on the year 2022 economic outlook of China. However, starting from 1st Jan 2022, the RECEP, the largest free trade zone in this planet takes effect. In addition, the China – Lao railway also started operation in last December. This railway links the Indo-China country to China’s BRI land route, it attracts other ASEAN member countries to build rails to link with China.
Look at the big picture, the RCEP, China – Lao railway, China-Europe railway and the BRI projects, couple with the many technological breakthroughs, many great business opportunities will emerge in this region for the coming decades.
Since 2001, China has transformed itself from a low-quality manufacturer to a high-quality, high-tech manufacturer. More accurately, China can produce nearly any kind of products irrespective of quality and technical requirements. If you want to sell electronic products to Western countries, you need to source from China. If you want to sell mobile phones to Asian countries, you need to source from China. China is a huge sourcing destination and a connection hub of many smaller satellite markets in Southeast Asia, Africa, and Middle East. If you operate your product distribution business, you cannot bypass sourcing from China. Conduct product inspection is the best practice in cross-border trading, skipping it at your own risk. Therefore, when you source from China, you must hire a product inspection company to conduct a product inspection for you
Price competition can be implemented easily but it can hardly obtain long term competitive edge over your competitors. Using good product quality as a competitive parameter can dilute pressure from pure pricing competitions. Customers seldom make a purchase decision purely on price but ignore the product quality. A company that places product quality at the centre of its product development and production process can build long-term brand equity and loyal customers. With the rapid and positive development of China’s economic connections with its surrounding countries, business owners with progressive vision should re-think their business strategies and prepare for the emerging huge business opportunities in the Chinese economic block.
2022 has just started and China’s economy is still progressing rapidly. With RCEP and other major infrastructure projects start operating, China as a global sourcing and manufacturing centre is irreplaceable. Any product trading and distribution companies must take China product inspection as an important success factor for their businesses in the next 20 years.