China Wholesale Goods

There is no denying the current power of the Chinese wholesale market on the world economy. With their massive population and eager low-cost work force they can manufacturer items at a staggering rate and for a lesser budget than their contemporaries around the world.

The economy and business of goods manufactured in China for wholesale is in the niche market of creating a constant stream of products for the rest of the world. However, there are a few assumptions about the economic importance of wholesale exports from China as far as their economy goes.

The most important misconceived assumption is that China manufactures everything they sell. While it is true that they do put all the parts together they do not machine most of the original parts themselves in general. The usual tactic is to purchase components parts from the richer neighboring countries, such as South Korea or Taiwan, then use those to build a cheaply crafted but high quality product.

A Chinese wholesale company could easily acquire all the parts to a two hundred dollar electronics device for forty or fifty dollars and expend another five to eight dollars in making the particular device before selling it to a western company for eighty to a hundred dollars.

Goods 1

This allows the total value of a sale of an export to be a smaller amount but actually lucrative to the business overall. Due to the sheer volume of sales they make quite a tidy sum of money despite the “nickel and dime” nature of individual item profits.

This practice allows for the creation of a massive market for goods in wide variety. The Chinese wholesale companies manufacturer everything from clothes and jewelry to high-end electronics such as high definition televisions and computers.

The secret to the method for crafting these items at such a staggeringly low price is the job market in China. They have a massive low-cost work force that will readily work for long hours and low wage because they need to work. With so many people living in China, it is still the most heavily populated country on earth with around two billion people as citizens, the job opportunities are taken swiftly by anyone who needs to work.

With such a large work force willing to work for so little they can keep their costs down and churn out enormous amounts of any given product to meet the demands of the world around them. This works out well in theory but sometimes it does not hold up in practice.

Goods 2

When China first became a world exporting power in the current age the manufacturers there often had a tough time meeting the minimum manufacturing safety or health requirements for some items they would wholesale to other countries.

The United States and the United Kingdom for instance would often have much more stringent regulations for clothing, jewelry, or electronics than China or its neighboring countries did. Clothes would be made with unsafe dyes, jewelry would have skin discoloring metals or toxic paint on them, electronics might actually catch on fire or become easily damaged internally due to this lack of regulatory enforcement.

This has changed for the most part in the last decade or so with more exacting controls in place by a demanding market. Wholesale manufacturers that will not meet minimum safety requirements will lose out on international business with the more restrictive countries and fail to remain a high-tier business entity because of this. The cutthroat nature of the wholesale industry demands that they meet the standards or face a possible failure of their business.

Some individuals shy away from acquiring wholesale merchandise from China due solely to a misguided belief that they are having a boom economy that cannot last and they may end up buying a large expensive order for their chosen product of interest from a company that will go out of business because they Chinese economy suddenly went bust.

Goods 3

These individuals and companies do not realize that the Chinese economy may benefit from exporting but is not solely dependent upon it. In point of fact the Chinese economy is primarily state driven and is undergoing constant growth because of new internal trade and commerce tactics that are allowing their equivalent of the middle class to actually have extra buying power compared to before.

In short, the export economy is an additional income stream for China and not their only monetary source. There is an estimated growth pattern of six to nine percent continuing on for many years into the future according to most economists. This growth will continue whether the economic depression in the rest of the world abates or worsens.