As the twenty first century arises, the world has become significantly more globalized and China is gradually moving up the technology hierarchy. China is actively improving its knowledge and skills to improve human capital and managerial skills. With these skills and knowledge, China’s experienced workforce was able to harvest anything an engineer can design, as well as generating proficient national system of railways, ports and roads.
Though China is still outdoing many competitors by mass production and low cost value added fundamentals, new characteristics have given China a new condition which has ultimately resulted in many foreign enterprises adopting the objective of improved technology and skills which have resulted with increase in production costs. This has left numerous enterprises, looking for enhanced investment opportunities elsewhere in search of lower production costs and evading China’s investment opportunities. However, it does take time and money to find new opportunities and develop new process based trust with alternative firms.
Therefore, it is still valuable and worthwhile sourcing from China due to the fact that China to this day still accounts for about 33% of the world’s production. This also confirms that China has developed strong relationships with many of its enterprises and has performed up to or beyond expectations which ultimately helps enterprises build a competitive advantage against its competitors.