But why is China so popular? This involves the quality of the product. The reason why the labor force in many countries in southeast Asia is cheap is mainly that the economic level of these countries is not high, so no matter the production technology or technological level is inferior to China. To ensure the quality of their products, foreign companies naturally prefer to choose China.

Economies Of Scale And The Network Effect Of Operating In A Global Manufacturing Hub

In terms of product production efficiency, China is hard to compare with many other countries. According to relevant data, domestic product manufacturing efficiency is the highest in the world. On the one hand, this is because China’s factories have more comprehensive equipment and a high level of science and technology, which can shorten the production cycle of products. On the other hand, it is because of the high quality of Chinese workers, strong learning ability, and developed transportation, which also speeds up the operation of all aspects of product production.