China is labeled as “The World’s Factory”. The trends make more and more “World companies” producing in China, sourcing in China. According to data published by the United Nations Statistics Division, China accounted for 28 percent of global manufacturing output in 2018. The advantage of lower cost on labors helps, more important the integral Business Ecosystem plays a big part. Industrial production does not take place in isolation, but rather relies on networks of suppliers, component manufacturers, distributors, government agencies, and customers who are all involved in the process of production through competition and cooperation. The business ecosystem in China has evolved quite a lot in the last 30 years.
Shenzhen, the city bordering Hong Kong in the southeast, has evolved as a hub for the mechanical & electronics industries. It has cultivated an ecosystem to support the manufacturing supply chain, including component manufacturers, fully trained workers, a technical workforce, assembly suppliers, and customers.