The Emergence and the Implications of China as the World's Factory Essay

The Emergence and the Implications of mainland china as the Worlds Factory - Essay ExampleOver the last two decades, China has become the biggest manufacturing business of manufacturing goods in the world with a global manufacturing role of 19.8% (MercoPress 2011). Meaning that 1 in 5 make products today are made in China - cl archean, China has emerged as the worlds factory. The early years of Chinas emergence as a manufacturing hub According to some reports, around 1850, China had a 30% share of global manufacturing but lost its edge by the end of the nineteenth century and its share of global manufacturing stood at 6%. By 1930, it was as low as 3%. Then, in the 1980s, China opened its economy and began welcoming foreign investments. The worlds factory apothegm its first emergence as a potential export hub when manufacturers from Hong Kong began to move their apparel and toy manufacturing units to southerly China in order to take advantage of the low wages there. In the 1990s, the scope expand to several other merchandise categories as China improved its infrastructure and quality of labor eyepatch keeping the wages low. Due to lower assembly costs of manufactured goods, electronics companies from Korea, apparel manufacturers from Hong Kong, and computer manufacturers from chinaware shifted most of their manufacturing operations to China. The key manufacturing activity was to import the manufacturing components, process them, and export back. In 2000, these processed components organize 55% of the Chinese exports and 41% of the total imports of China were actually for reprocessing them for exports. From 1993 to 2002, Chinas manufacturing exports jumped from $60 one thousand thousand to $320 jillion with office and telecom equipment accounted for $52 billion. In terms of Foreign Direct Investment (FDI), in 1990 China received 18% of all Asian FDI, and by 1999, China had a lion share of 61% of all Asian FDI. By the 2001-2002, most of the biggest brand s in the goods industries invested heavily in China to dependable their manufacturing. For example, by 2001, the investment of Japanese electronics major Toshiba in China totaled more than $1 billion in 37 factories in China.