China Supply Chain Trends: How China is Stepping Up

Jun 13, 2022

China Supply Chain Trends: How China is Stepping Up

The COVID-19 pandemic has impacted every aspect of life and business. Global trade and manufacturing have not been immune. China has one of the largest economic systems in the world. Manufacturing is one of the leading reasons for China’s continued high ranking. China tops the chart as one of the world leaders in this industry for a variety of reasons. First, China can accommodate bulk order goods due to the size of its facilities and the magnitude of the equipment. Outside of the pandemic, China has a readily available workforce who can work for lower wages than other countries.

Although the pandemic sat at the helm of reasons for the interruption of China’s manufacturing and supply chain, trade war tensions also play a significant role. Tariffs and sanctions on China have increased and the Chinese Yuan value has decreased. All of the negative impacts have forced China to grow in new ways. This is forcing China to rethink its global market strategy.


The use of robots in warehouses may have sounded impossible just a decade or two ago, but it is becoming a widely used practice in the supply chain. Robots and other digital assets such as IoT (Internet of Things) allow for interconnection with a facility and faster output of products. This rise in technology also opens a new set of needed skills. Companies in China are now adding IT and analysts to their workforce. As the need for more technology rises, so does the need for technology-trained. This need is driving people to seek this type of education.

Shared manufacturing

China-based manufacturing companies are reshaping how they do business in several diverse ways. One important way China is looking to reshape is through shared manufacturing. According to China Macro Economy, China’s Ministry of Industry and Information Technology announced a plan for shared manufacturing. This means that there will be shared manufacturing facilities, equipment, tools, and creative innovation. The hope is that shared manufacturing will help limit inefficiencies for businesses of all sizes.

Skill Development

China businesses are also closing rank around the local workforce. Training local workers instead of offering jobs to foreign people are becoming a popular trend. Having highly skilled workers boosts the efficiencies of businesses and the economy. China businesses see a huge value in training current employees. The thought is that if employees are well trained and able to get promoted from within, they will be less likely to leave and take their skillset with them. Investing in training creates a loyal and highly knowledgeable workforce. Companies are offering broad training around leadership and business. There are also supply chain certifications for management-level employees.


The trends in China’s supply chain will continue to evolve as the needs of businesses and consumers change. Being aware of these trends can mean the difference between your business falling apart and thriving. One way to help manage these trends is by working with a China sourcing agent. Sourcing agents are professionals who are aware of China and industry trends. Sourcing agents can negotiate on your behalf and help you choose the right China-based partners. Global Manufacturing and Sales can help you tackle this ever-changing environment and get you partnered with the best manufacturers in China. You can request a quote or visit our website for more information.


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