The phrase “Made in China” has been coined by foreign companies that have turned China into the manufacturing hub of the world; Many international firms have chosen China as the place to manufacture goods cheaply.
“Made in China” has been the key factor for high growth rates that have been prominent in China for the past three decades. Today, however, a change of policy is taking place. Policy makers realize that they can no longer rely on workers to work for scraps: As inflation and the quality of life rise, workers need more money to support themselves and their families financially, and they demand higher salaries from employers. Factories, therefore, are forced to raise salaries to meet demand; Higher salaries scare off certain companies that look to exploit cheap labor and to make large profit margins; Those that choose to stay, pay more. Consequently, workers spend more and help push the economy forward; This phenomenon creates a shift in the source of economic growth – from a manufacturing based growth to a consumerism based growth.
From “Made in China” to “Made Here”
Chinese society is turning into a consumer based society. China no longer wishes to be seen as a country whose growth is based solely on the ability to make goods cheaply but rather as a country whose growth is based on the ability to create new products, to innovate new ideas and to lead the world in new directions.
It is clear that this process will take years, if not decades, because a change in the state of mind of people must take place: People in China (and in other parts of Asia) are accustomed, culturally, to save money rather than to spend it. That is the reason why a relentless effort (in the form of nonstop advertising) is now being carried out by foreign and local companies to cause people to spend more.
I would like to conduct an experiment to better understand the magnitude and speed of this phenomenon, and I hope you will indulge me: I am asking each of you to take a look at what you are wearing right now and to identify where the items you are wearing were made. I wonder: Are goods still mostly “Made in China”?
My sweater, polo shirt, shoes and jeans were all made in China.
What about you?
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Lior Paritzky is the Editor in Chief and Manager of Laowaiblog, an internet platform that provides opinion and views about social phenomena in modern China. Look for Lior on Twitter: Liorpari 
My Nike Jumper is made in Malaysia and so is my T-shirt
Out of a about 20+ pieces of clothing I have lying around. 1 was from thailand, 2 were made locally, the rest were from China. Got a new pair of glasses today, the case was made in china, can’t tell if the glasses were.
But I haven’t seen any inflation of made in China goods locally, it’s still as cheap as it’s always been.
Accompanying my wife to the mall every week, we see more and more clothes are made out of China, say, Egypt, Indonesia and some other south asia countries. Especially for the clothes require less sophisticated work; those factories are easier to move to a lower salary region.
I am a Chinese at 20s age. When I was at the high/middle school, a lot of friends and relatives drop out school to go to Guangdong. There, they can earn 1000 RMB/month. But now, none of those friends continued to work as a low salary factory worker. They either start their own business or switch to other high profile jobs. The trend is that, less people want to choose a factory work unless they are from extremely rural place, where 1000RMB is still big money to them.
Hi Qiu,
Thank you for your comment. Do you think that “made in China” is no longer relevant then? and how do you see China moving on from here…?
Lior
Hi Lior,
Factories always want to minimize their costs, that’s why they moved from US or europe to China three decades ago. Nobody in US wanted to do the $100/month job.
Now, average chinese are getting richer; not rich for everybody, but majorities are not that poor any more. So when the majority chinese are not willing to work at very low salaries, it is the time for the factories to move to another country.
For clothes factory, we already see the trend of migration. Actually the chinese government also favor this trend. Because they want China be a factory for high techs products in the next several decades. And after that, god will know what China would be.
China is the country now developing very fast, the next could be Egypt, India and many others. The is good for human in a sense of a big society; but not everybody will benefit from it.
Americans are getting lazy comparing to who they were 200 hundred years ago. People are complaining about the unemployment rate, while their ass getting fatter. Here, I am not assaulting anybody, and this also is happening now in China. Lots of people in China now also eager to get rich without doing anything.
I am sure China will not be the world factory forever, but I am not sure this is good or bad for us.
Lior,
I live in a coastal city in southern China. The Nike products we buy here are made in Vietnam or Mainland China (the former are way cheaper…)
My friend is just back from her trip in Australia. She had troubles buying souvenirs, because everywhere she went there sells made-in-China items.
As for the ‘made here’ switch you mention, I do think there is a noticeable campaign underway. For example, the ‘Huili’(回力)’s entering western market, and the thriving of domestic brands like VANCL(凡客诚品).
Good luck with your experiment.:)
Ironically, the goods made in China aren’t my favorite since I was made in China. Because certain recognize of “Lower quality for Chinese product” exists in my brain, and many people across the world may have the same feeling.
The most important reason why factories moved from Western countries to China is not low-salary, but efficiency: The efficiency of chinese workers make them produce more goods in the same period of time compare to other workers, and factory can lower the cost per good and achieve the mass production as well. If companies only select the factory base on the low salary, they will move factory to Africa, or East-south Asia.
But Mass-production leads to another issue: mass-production means lower value! When you see a good which has been mass produced, you may think it is cheap, and not as good as “handmade” good. And when you realize that most mass-produced good are mainly from China, they may link “made in China” to lower prize, lower quality and many.
Actually, you can have many product made in china because western companies want to achieve the lower cost per goods. And it will influence the reputation of chinese good but not their good made in China, but with western good. For example: I can’t distinguish the difference between real LV bag with fake one since they probably were produced in the same factory.
For many local chinese companies, their products sometimes have low quality because their business operation hasn’t been developed enough: lack of measurement, technology is out-of date, management methodology isn’t advanced, or equipments is ineffective. They need to learn from their elder western competitors and improve their business oepration. But it takes time, and we should be patient that their product will have better quality in future.
Most of the clothes sold in Australia seem to be made in China. The quality is quite good. Chinese shoes (real shoes, not joggers), on the other hand, are rubbish… Tools, kitchen implements and even lawn-mowers are made in China – and are to be avoided as the quality is low.
I try to avoid “made in China” wherever possible because I don’t agree with the exporting of jobs to low-wage countries, and I am concerned about China’s intentions, economically and militarily.
Hi, SunbeamRapier:
I can promise you that China shouldn’t be your concern as military and economic threat whenever now, or future.
For my opinion, sometimes people would like to prefer some existed dangers rather than unpredictable things. I understand that China may scare you at some level simply because you don’t know it very well. I just suggest you to pay more attention on some one who has largest military power, and actually has used it many times (including nuclear weapon).
For Economy; whatever you agree or not, the western capitalists still will continue exporting jobs to other countries since people who comes from those countries work much harder, and achieves more efficiency (again, not only about low wage).
since every companies have their own standard to measure their goods, it might not their labor’s fault of producing low-quality goods. It may because those factory owners want to lower their cost, and mass-produce their products. Anyway, you can avoid to buy “made in China” , but it makes no difference.
Hi SunbeamRapier,
You are only concerned about China’s intentions, because you are not familiar with the Chinese culture. I also don’t understand how you can be afraid of China, while you have countries like the U.S, who considers to be “good”, yet sends its army into Iraq, Afghanistan and now Libya, on behalf of the “good” side. When was the last time China invaded anywhere? how can you be scared of China while western countries are invading nations as they wish? and I am a westerner…
Most of the clothes in my closet were made in China, but I am very unhappy with the quality. Every time I buy something that was made in China, I hope that the quality is good, but it isn’t. I want to hope it will get better with time
My pants-Dockers, made in Dominican Republic,
Sweater- Italy
socks-?
white shirt, bought in Japan, old and the care label doesn’t say anything, could it be worn off?
booties, knit by my mother-in-law
there are articles in the US press about companies moving on to India. But you know, India isn’t the land of opportunity. It is nice to see so many Chinese voices here. A long time ago, I dreamed of finding a wife “made in China”. because that is where I wanted to live and raise a family.
or “they” became that way as a byproduct of constant conflict. The conflict caused one really bloody civil war by percentage of total population maimed or killed. And the same conflict is still being politically exploited, the school systems be damned. If you know what I mean. China is too used to centralized authority. Like a drug they will take a loooooooooooooooooooooooong time in my opinion to get off that drug of centralized authority, because look at the strength of this tradition. And centralized authority, I think, hates stuff it can’t control, like…………….innovation.
I think the key sentence is your next to last paragraph “it will take years…” . I base this opinion because of what has and is still happening here in Japan. Any culture is difficult to change towards one of innovation, just because the policy leaders at the top think it is economically desirable. For example, take America, it didn’t set out to be an innovative society by government policy. “We”
Hey:) nice idea Lior!
um only my track pants were made in China(from 68(a Chinese brand)-cause they make really comfy home clothes) um the rest was made in Indonesia(my sweater-its a German brand though:)my lingerie: Germany and France. My t-shirt:Malaysia(by a Malasian designer Patricia Forgeal-that shop had some cool stuff), Germany(Triuuuuumph♥)shoes: U.S(slippers by Isotoner) My personal opinion on this: China: quit copying European brands. You can do so much more unique stuff. China does not need European brands, except if they want to buy them(and I totally believe in the originals here: not copies at Silk Street) They should start making more of their own stuff. But add some class too. use even more inspiration from Chinese costume history and add modern elements.And other original ideas too of course. this seems to be on the way though and it’s exciting to see how this will all evolve:) In Europe we are hardly exposed to Chinese brands(and the styles are completely different but it would be interesting either way) Chinese clothes can be good quality if you select the right brand and are willing to pay a bit more. But then I find that to be the case anywhere else in the world too.
My shoes and sweater were made in China.. but my jeans were made in Turkey and my shirt was made in Bangladesh
You know, you forgot to mention one single very important thing: colonialism. The west is exploiting Africa and Asia for so long only to benefit from its work force and its resources. It started in slavery and it continues with manufacturing. The day is not far when Asians will say “fuck off”
Let westerners make their own clothes….
Maya, this is nothing new. Colonialism has always existed in various forms, and it is essentially the exploitation of goods or of people. THIS IS NOT COLONIALISM, because these people are getting paid. The people who pay for the Iphone, for example, pay 600 US dollars. the employees who helped create it are paid 6. where is all the money? in between. These are the people to whom you should complain, and they are the ones who are “exploiting” (to me there is a very fine line between using this word and using the words “making a profit”).
Either way, from here to colonialism there is still a very big distance
Without entering this discussion too much, I agree with Robin Hood. If you have a problem with colonialism, don’t buy. Same thing with people who don’t eat meat – they simply don’t buy it. They don’t complain that it is colonialism in disguise…
Dear Maya, the day than the USA and Europe will stop buying goods from China, it will be the end of China’s Golden Egg
and back to well… your parents know …
Laurent: your suggestion is as preposterous as the following story:
There are 3 Asians and 1 White stuck on a tiny desert island. The 3 Asians go out to find food, kill animals, collect sticks, make a fire and stand guard. The white does not do this. Instead, he only eats. But he makes a monetary system of pebbles, and controls the supply of pebbles at a secret stash. Anything that is bought or sold on the island has to go through his pebbles. To enforce this, he’s the only one with an iron pipe from the wrecked ship.
To protect his position with more than force, the white says, “I am the sole driver of economic growth on this island. Without me, who will consume your food, who will consume your fuel, who will you stand guard over?”