Manufacturing Alternatives to China
It is well documented that Chinese tariffs on imported goods are extremely high, which makes manufacturing alternatives to China a highly sought-after commodity. These tariffs in China on trade could make a relatively inexpensive transaction not worthwhile once the tariff charges are accounted for within the transaction. That is why it is important to establish connections with low cost manufacturing countries that have limited U.S. tariffs on their exported goods. Overall, manufacturing in Southeast Asia can be done effectively and economically by partnering with an outsourcing company that always keeps your future fiscal wellbeing in mind.
Manufacturing in Southeast Asia While Avoiding Chinese Tariffs
There are certain ways to obtain goods in Asia without having to pay hefty tariffs.
Low Cost Manufacturing Countries with Limited Tariffs
Companies that are looking to avoid the large import tariffs and rising labor costs associated with doing business with China should be aware that there are other manufacturing options in Southeast Asia. These alternative production countries can provide the same materials and goods as China, without the hassle of high-priced tariffs and increasingly expensive Chinese labor. Some of the manufacturing alternatives to China include the following countries:
Low Cost Manufacturing Countries are Acquiring Chinese Based Companies
The U.S. tariffs that have recently been imposed on Chinese goods are forcing some Chinese based companies to shift their operations to other Southeast Asian countries. Since labor costs are already more affordable outside of China, certain Chinese companies that are directly affected by the tariffs have acquired extra motivation to move their operations outside of the Chinese border. Additionally, China is moving towards increased automation, which can increase the costs associated with doing business with them, outside of any imposed tariffs.
Specific Tariffs in China on Trade: Affected Industrial Products
Your specific industry, and what types of goods that you need to secure from other borders will determine the costs the Chinese tariff ramifications will have on your business. The following is a partial list of the specific products that have been affected by the imposed tariffs on Chinese exported goods.
- And many more
Manufacturing Alternatives to China: Vietnam vs China
Due to various reasons, including U.S. tariffs on Chinese goods many China based companies are now shifting their operations to other low cost manufacturing countries such as Vietnam. Vietnam can produce the same goods as China at a less expensive clip with a greater incentive. Some of the more appealing aspects of doing business with Vietnam, include:
- Lower Wages – According to some estimates, wages in China have doubled in the last 10 years. Wages in Southeast Asian countries such as Vietnam have risen, but not at the same rate as China.
- Restrictions – China has a wide range of restrictive regulations on establishing production within its borders. Conversely, Vietnam has far fewer regulatory restrictions on products that move in and out of the country.
- Skilled Workers – Many companies that are currently doing business with Vietnam report that their workers are highly skilled and offer more knowledge than comparable Chinese workers.