Crisis Or Opportunity? The promotional products industry walks a cultural, ethical and logistical tightrope doing business in China. Amid an uncertain economic and geopolitical future, some companies are exploring alternatives. by Audrey Sellers China is a manufacturing powerhouse. Known as “the world’s factory,” China is the largest manufacturer on the globe in terms of output. The country’s GDP reached $17.7 trillion in 2021, up $3 trillion from 2020. This year, China is targeting to grow another 5.5%. Outside of textiles, nearly every promotional product comes from China—or has components from the country. China’s speed, low labor rates and strong manufacturing capabilities have made it a global manufacturing hub and the go-to source in the promotional products industry. The second largest economy behind the United States, China is the most populous nation. But the country is changing rapidly. So is the relationship between China and the U.S.—and China and the world. Is the promotional products industry ready for what comes next? Tumultuous Times Doing business in one of the world’s most dynamic countries has become increasingly complicated. First came the China tariffs in 2018, leading the world’s two largest economies to engage in a bitter trade war. Some economists say the U.S.-China trade war could go on for years. FEATURE | China 60 | MAY 2022 |
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