Global Impact of China’s Manufacturing Industry

Interest in knowing about China Business News? In this article, you will know about the Global Impact of China’s Manufacturing Industry. 

The Manufacturing Industry of China is one of the biggest and dynamic industries in the World. In recent years, the manufacturing industry of China have seen significant growth which impacted the global economy as well. 

In this article, we will explore the Global Impact of China’s Manufacturing Industry. 

Lower Pay

China is the most populated nation in the world, with a population of roughly 1.41 billion. According to the law of supply and demand, wages remain low because there is a bigger supply of employees than there is a low-wage workers. 

Up until the 20th century, the majority of Chinese were rural, lower, middle class, or poor. However, internal migration flipped on the country’s rural-urban mix. These immigrants frequently accept working many shifts for meagre pay in industrial cities. 

Chinese legislation does not closely adhere to minimum wage or child labor restrictions, which are more commonly observed in the West. 

However, it appears that things are beginning to change as more provinces report raising their minimum wages in response to rising living experiences. 

The enormous labor force in China makes it possible to manufacture in large quantities, meet any seasonal industry demand, and even respond to unexpected spikes in demand. 

Innovation and Technology

The China Manufacturing Industry has also become a center for Innovation and Technology. Chinese companies have invested a lot in research and investments, particularly in artificial intelligence, robotics and renewable energy. 

China also has a significant contribution in electric vehicles and batteries that is why China is the leader in the production of electric vehicles and batteries.

By investing in innovation and technology, China has given advantage to the global economy, especially today when the world is moving towards a technology-driven future.

Taxes and Duties

China implemented the export tax rebate programme in 1985 to end double taxation on exported items and increase the competitiveness of its exports. Value-added tax (VAT) on exported goods was 0 percent, making them eligible for a VAT exemption or rebate. 

Additionally, there were no import taxes imposed on Chinese consumer goods. The production costs were low due to these lower tax rates which allows China to get investors on board and ventures exploring to produce budget-0friendly goods. 

China and U.S. Tariffs

The United States announced taxes on 818 Imported Chinese goods worth $34 billion in July 2018. 

This was the first of many rounds of tariffs that both countries imposed; as of February 2020, $550 billion in U.S. tariffs had been placed on Chinese imports and $185billion in Chinese tariffs had been levied on U.S. goods. 

China’s Foreign Minister Wang Yi advocated for the elimination of multiple tariffs after President Joe Biden took office. The topic of lowering tariffs has been under debate continuously during the Biden administration. 

President Biden and U.S. Secretary of the Treasury Janet Yellen both suggested that lowering tariffs with China might have a good impact on domestic inflation concerns in 2022 as the United States continued to struggle with increasing inflation. 

Reduced Compliance

Manufacturers in the West are obliged to adhere to a number of fundamental rules regarding child labor, forced labor, health and safety standards, wage legislation, and environmental preservation. 

Chinese Industries are notorious for disregarding the majority of these regulations. In the past, child labor, lengthy shifts, and a lack of workers compensation insurance have all been practices in Chinese Industries. 

To prevent workers from leaving before the year is over, some manufacturers even have procedures where they are only paid once. 

The Chinese Government claims to have implemented measures that uphold workers’ rights and offer more equitable remuneration in response to growing criticism. Though change has been slow and rule compliance is low in many industries. 


All over the world, China is a very popular and big country which has influenced the world in every way. China’s manufacturing industry has made an impact on the global economy and helped many new startups and innovations succeed.

We hope this article helped you to understand how big the manufacturing industry of China is and how it made a global impact.