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China is often overlooked as a powerhouse country in the shadow of the United States’s political and consumerism, but in reality – many of the products we buy on a day-to-day purchase are bound to have the ‘Made in China’ sticker label on the back of the product.
‘Made in China’ products are common amongst several countries and utilized by several companies: such as Apple, Nike, and more.
In this article, we’ll discuss what ‘Made in China’ products are, why companies choose to sell ‘Made in China’, and if we should stop selling ‘Made in China’ altogether.
The infamous ‘Made in China’ label refers to products that have been made in China – this can be anything from a dance leotard, a stuffed animal, to a pair of sneakers.
China began mass producing at the rate it is now as a result of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures – which created several profitable zones that remained free of tax-incentives or other regulations. This allowed China to start mass producing at an unprecedented rate that other regions of the world would never have been able to surpass.
💡Many businesses worldwide started to move their production overseas once China joined the World Trade Organization in December 2001.
Some examples of companies that produce their goods in China include:
Since China is able to mass produce with little to no restrictions, ‘Made in China’ products have become popular – as many companies will choose to execute the production of their goods in China for cost-savings and faster turn-around times. Therefore, it’s more than possible to find a ‘Made in China’ label from almost any product in any industry.
👉As of January 2024, China’s annual international export and import of China's goods reached a 4234.4 billion RMB– marking a 23% increase from January 2023. That’s equivalent to around $600,000 USD!
There are several reasons as to why companies will choose to manufacture their products in China, such as to reap the benefits of reduced labor costs, easy access to various supply chains, and readily available access to various markets.
Here are some additional reasons why these brands choose to manufacture in China:
👉 Ultimately, the main reason why several companies will decide to move production and various business operations to China is for the reduced operational and labor costs, improved market access, and ability to streamline their supply chain.
Businesses may experience financial and marketing benefits when moving their production overseas to China, but ‘Made in China’ products aren’t good for the environment – with China often creating more carbon dioxide emissions for producing the same product that could have a lower carbon footprint if made elsewhere.
Additional negative impacts to importing or exporting goods ‘Made in China’ include:
👉 The negative impact of importing and exporting ‘Made in China’ products is that the purchased item could end up being a hit or miss, increased risks of pollution-related deaths, and inconsistent shipping and arrival times. However, the world has become accustomed to using China as a manufacturing hub – leaving many of us to wonder if it would be worse for the world if we were to drop ‘Made in China’ products altogether.
If the world were to stop importing and exporting ‘Made in China’ goods, it would impact both China and other countries – but more specifically, it would create a negative impact for consumers in other countries that currently rely on ‘Made in China’ goods.
Specifically, in the U.S. – Americans and the U.S. government would most likely attempt to produce goods such as laptops, clothing, and more within the country. In the event you didn’t already know, tensions in the trading relationship between the U.S. and Europe have already been rising in the midst of various global conflicts – but even if trade continues to taper off between these nations, China will remain pivotal for the rest of the world.
However, in the event of this extreme – let’s say the United States did try to take over the production for many of the infamous, ‘Made in China’ products. For starters, it would be exponentially more expensive to produce products such as the iPhone in the United States. As a result, the prices for these products would go up – contributing to inflation, which is something that countries in Europe and the United States alike have already suffered from in recent years.
Another possible outcome if the world were to stop directly trading with China and purchase ‘Made in China’ products is that the entire trading route would change. For example, other countries that would not be able to produce goods in-house such as elsewhere in Asia or South America would probably continue to purchase goods from China, change the labels, and resell the goods to countries such as the United States for a profit.
👉 Overall, if we were to stop purchasing goods from China, the popular ‘Made in China’ label would slowly become obsolete – but China would probably continue producing goods and sell them to other countries, ultimately expanding the worldwide trading network.
Ultimately, deciding whether or not to continue using ‘Made in China’ products will be a personal choice on behalf of companies – but there are several things to consider.
Here are some things that your company should keep in mind when deciding whether or not to proceed or halt production operations in China:
At the end of the day, ‘Made in China’ products are a cause for concern – but more so for the environment than they are for business endeavors. In fact, ‘Made in China’ products have helped both businesses and consumers alike produce and purchase desired products at an affordable price – and if, ‘Made in China’ products are to go away, as would the reasonable prices.
However, if ethics and protecting the planet are some of the primary concerns for your company or lifestyle – it’s a great idea to start looking into other options besides ‘Made in China’ products, and we at Greenly can help your company get started.
If reading this article about ‘Made in China’ products has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!
It can be challenging to fully understand which ‘Made in China’ products your company should continue to sell or discontinue, but don’t worry – Greenly is here to help. Click here to schedule a demo to see how Greenly can help you find ways to develop the perfect climate strategy for you.
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