Chapter 13. Manufacturing in China

In This Chapter

  • Why you should manufacture in China

  • Producing for the local market

  • Figuring out location and surviving construction

  • Getting permission and permits

  • Finding and keeping factory workers

  • Taking care of quality control

In a broad sense, two manufacturing strategies for foreign-invested enterprises (FIEs) exist: producing for export and producing for the domestic market. Your company may do both. Both producing for export and the domestic market are challenging, and generalizing about how to execute either is difficult because so much depends on individual circumstances.

In this chapter, we’re assuming that you already know something about manufacturing (if you don’t, you may want to think twice about setting up a factory in China!). We talk about the major adjustments you should make when manufacturing in China. We also assume that if you’re manufacturing purely for export, you know who your customers are; therefore, we focus our distribution discussions on producing for domestic markets.

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