For a 2005 New Years' resolution, journalist Sara Bongiorni made a rather difficult resolution for her family: To stay away from any "Made in China" purchases for the entire year. Her experiences and difficulties of finding products were chronicled in the thought-provoking book, "A Year Without Made In China".

It would be ideal to think that Ms. Bongiorni, a champion for those of us with high ideals and who want to make the world a better place, would have an easy (albeit pricey) time shopping for her family's needs. But Bongiorni's experiences make very clear that a regular consumer in the West cannot possibly live without provisions from the manufacturing giant that is China. The book details her family's numerous struggles in their quest to buy the most mundane, daily necessities.

Made in China, used by the world

Ms. Bongioni's year without "Made in China" provides a realistic glimpse of how China's manufacturing system affects the rest of the world. Those of us in the Western world know very well of the term "Made in China", a short quip often used with negative connotations referring to products that are poorly made and unethically manufactured.  To some of us, "Made in China" conjures up images of melamine-tainted milk and lead-poisoned toy trains. But despite the recalls and news stories and backlash, products are still streaming off production lines at a staggering pace.

The Chinese government's commitment to keep their economy growing as well as the desire from foreign investors to keep prices low abroad have spawned an uncanny growth in China's manufacturing sector in the last 20 years. Over the past two decades, China's share of the global manufacturing industry has risen faster than that of any other country. In 1990, China's share of world manufacturing output by value added was 2.4%. By 2006, China's share was a staggering 12.1%, and China became the third largest producer after the United States and Japan. In the 1960's, Japan was feared for overtaking the global economy in importing and exporting goods. Today, no one fears anyone but China. In 1984, China exported a mere $26 billion of goods. 20 years later in 2006, a mind-boggling $969 billion of goods were sent out of China's humming ports.

What could possibly be included in this massive number of goods and dollars coming out of China? Well, everything. Everything from children's shoes to baby cribs to fuzzy dice to computer parts to canned vegetables and seafood. Everything, from cheap dollar-store trinkets to designer jewellery and luxury cars.

Clearly, the Made in China moniker has become more than just a term for a flimsy, cheaply-made product; it's become an all-encompassing indicator of what we consume in our daily lives. There are over 400,000 factories in Guangdong province alone, and this number is growing with each survey. Factories that produce the sofas we sit on, the fake Christmas trees seen on the shelves during the holidays, and the clothes that we wear. Even the pearls sold at Tiffany's are cultured, polished and strung in factories in China: proof that luxury brands seek China for manufacturing the same as Wal-Mart.

Can China keep up the pace?

Increasingly, a myriad of factors indicate rocky times ahead for China's once unfailingly prosperous manufacturing industry. Issues such as labour shortages, raw material price increases, growing competition, and the public's demand for better CSR (Corporate Social Responsibility) practices and worker unionisation result in narrowing profit margins and increasing costs. Prices on exported goods are rising – not by much, but enough – to drive some buyers to look elsewhere for even cheaper labour (Vietnam, India, Bangladesh, Africa) and cheaper production prices. Could this mean fewer "Made in China" products on the shelves at home?

Other countries may attempt to compete, but it looks as if China will always be able to provide what industry regulars know as "The China Price"- the cheapest wholesale prices, without competition. China's developed infrastructure, with massive connecting roads and international shipping ports, are unbeatable compared to other manufacturing countries. The desire of the government to exemplify prolific economic gain will guarantee jobs for the 100+ million migrants who seek factory work in coastal cities year after year, on top of keeping nation-wide regulatory practices virtually non-existent.

Lax legal regulations make it possible for the manufacturing workforce in China to slave away at below-legal prices and above-legal hours. What regulatory practices that do exist, do so at a local level and varies from factory to factory, allowing the larger Chinese government to turn a blind eye to violations and quality control issues. Meanwhile, Chinese companies' widespread and blatant violations of intellectual property rights help to perpetually squash costs and keep export activity high. In fact, two-thirds of all counterfeit goods seized in the US have been traced to Chinese manufacturers. Not to mention, those of us living both inside and outside of China demand for the discounts, slashed prices, and quantity of output that only the Chinese system can provide.

Spotlight on Chinese working conditions

But things that are "Made in China" are increasingly in the spotlight, which can be a good thing. Bongiorni is just one example of how people are becoming more aware of where our products come from, and the practices associated with them. A recent expose by US news source NPR explored the workers and practices involved in creating the Apple iPhone. The podcast and subsequent articles and investigations (originally broadcast with the title "Mr. Daisey and the Apple Factory") have ignited a slight backlash and prompted an examination of Apple's production practices: even coming from the cult-like followers of Apple devotees.

As one of the largest and richest manufacturing companies in the world, Apple is well-known for subcontracting manufacturing processes to factories all over China, perhaps none more famous than the Foxconn factories in Shenzhen.  What were once discreet, sub-contracted Apple production factories are now being routinely audited by the FLA (Fair Labor Association), and a focus of news stories around the world. A greater percentage of the supply change is now concerned about CSR and environmental practices.

Clearly, the future of production in China is slowly shifting, as is the connotation for products that are "Made in China". Though brands will always aim to find the best "China Price", industry standards and consumers today are demanding a closer look at where these products actually come from.  In another 20 years, Bongiorni's project of trying to avoid goods that were "Made in China" might actually be a little bit easier, if not more transparent. Or better yet, might not even be reason for news at all.
 

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Keywords: Made in China manufacturing in China total exports in China growth of Chinese international trade working conditions in China