As of July, 2007, the Central Intelligence Agency for the United States government estimated that the population of China is over one billion three hundred twenty one million people. In contrast, the population of the United States is estimated to be a little over three hundred two million people. That's 1,321,000,000 versus 302,000,000 people; China has over four times the population of the US
In the past two decades China has completed and put into operation over 2000 large and medium-sized industrial projects; these include railways, atomic power stations and completely new cities. There has been ginormous investments in other fixed assets such as basic industries, 100,000 new reservoirs for water storage, irrigated land, coal mining, oil-drilling, steel-making, power generation, highway construction, and newly constructed and extended ports.
China has the world's largest manufacturing workforce-over 100 million people. In comparison, there are about 14 million manufacturing workers in the United States. China's labor costs are low compared to the United States and many other parts of the world. As of 2002 statistics indicate that employees in China's city manufacturing enterprises received about $ 0.95 per hour; rural workers average about half this amount: $ 0.41 per hour. A large majority of manufacturing employees work outside the cities. They earn about 3% of the average hourly compensation of factory workers in the US and many other developed countries. With low land costs and low labor costs it is no wonder that the cost advantage to manufacturing in China is extremely attractive to American entrepreneurs. When their products are manufactured with sufficient quality controls, the cheaper costs and effective delivery systems create a win-win situation for those who are able to participate.
Manufacturing is a basic Chinese industry. When you take raw materials and labor and produce products that can be sold in high quantities at a lower cost than US competitors, and successfully import them to the US and it is possible to have excellent returns on your investment. And China's political and economic system is reliably stable compared to other developing nations such as many countries in Africa.
What is the approximate size of the trade in goods from China? According to the US Census bureau, Foreign Trade Division, imports from China in 2006 were over $ 287 Billion dollars; for the first five months of 2007 imports from China were over $ 120 Billion dollars.
What are the main categories of products imported into the US from China? This includes iron and steel products, specialized industrial machinery, office machines and computer, telecommunications and sound equipment, electrical machinery and parts, road motor vehicles, building and lighting products, furniture, travel goods and handbags, footwear, professional, scientific and controlling instruments , photographic and optical equipment, timepieces, personal care products, and food products such as tea. According to the American Electronics Association, high-tech imports from China are on the rise.
What are some of the main risks associated with doing business with a manufacturer in China? We do not speak the same language, …