Manufacture Product Or Import From China? - With
One Child Or Two?
Author: Justin Luyt

If only China knew decades ago of its future explosion in the
global marketplace, it surely would hot have implemented a
one-child policy as they have done over the past decades. Now
Beijing is faced with a huge demographic challenge.

With the explosion of trade with China, business is booming and
needless to say, every other product today is manufactured or
"Made in China". But China is faced with a shrinking workforce
in the urban areas. Their long-standing one-child policy is now
making life difficult for China but it is not too late to
reconsider the policy for future growth.

China's one child-policy has worked very well in the past. If
we consider that China has a population just under half a
billion, it is pretty impressive that this policy has kept the
Chinese people out of full poverty. We have to give the policy
its credit. It did serve its purpose.

Since China has become a key player in the product
manufacturing and import/export world, it is an economic reality
we have to be aware of. If the one-child/family-planning policy
is reviewed soon enough, it could help China with this
demographic challenge, while it is still a leading force in
global product manufacturing. The concern of its demographic
challenge does not only touch the manufacturing industry, but it
is a reality all over the economy. If the economy keeps growing
so rapidly, a shrinking workforce is surely not your friend.

The one-child policy was introduced in 1979 and it became a
local government legislations. In urban areas the one-child
policy was strictly enforced, but in rural areas if the first
born was a girl for example sometimes a family could have anther
child. This was mainly because social services were not provided
in rural areas.

China finds itself now with an above average age in its
workforce and the majority of its workforce is made up of the
elderly. In regions like Guangzhou labor costs have been
increasing while maintaining a shortage in labor. Labor cost
specifically in manufacturing has been slowing increasing and
have been a concern for investors. If nothing is done to China's
family planning policy, this trend if increasing labor cost will
continue and investors will look else ware for their
manufacturing needs.

All of this said, we still are very excited about the Chinese
economy and manufacturing industry. China has become a leader in
global manufacturing and if they do the right things soon enough
will continue to lead in these realms.


About The Author: Justin Luyt from Global Manufacturing
Services, works with small and mid-size firms to manufacture
their products in China. GMS information website:
http://www.BIGmanufacturing.info. GMS Services website:
http://www.BIGmanufacturing.com. Tel: 817-692-9403