Manufacturing Alternatives to China

It is well documented that Chinese tariffs on imported goods are incredibly high, making manufacturing alternatives to China increasingly appealing. Depending on the product, Chinese tariffs can negate the financial benefits of a potential deal due to the extremely high cost of doing business. It is essential to establish connections with other Asian countries that provide low-cost manufacturing options and reduced tariffs on their exported goods to counter the high cost of Chinese tariffs.

At Sun Fast, we provide expert offshore and outsourcing manufacturing alternatives to China including manufacturing in Taiwan, Vietnam and several others. Our knowledge and strategic partnership base throughout Southeast Asia offer a proven economical alternative to Chinese manufacturing.

For more information on ways to successfully source your custom manufactured parts from countries throughout Southeast Asia, Contact Us or call us at 714-680-8288 to discuss your offshore manufacturing project. Sun Fast is your trusted resource for outsourcing custom manufacturing products and services overseas.

Offshore Manufacturing in Southeast Asian Countries with Lower Tariffs

Companies looking to avoid hefty import tariffs and rising labor costs associated with doing business with China should be aware of other manufacturing options in Southeast Asia.  These alternative production countries can provide the same materials and goods as China without the hassle of high-priced tariffs and increasingly expensive Chinese labor. Some of the manufacturing alternatives to China include the following countries:

• Vietnam
• Taiwan
• Philippines
• Thailand
• Cambodia
• Malaysia
• Indonesia 

Southeast Asian Countries are Acquiring Chinese Based Companies 

The US tariffs recently imposed on Chinese goods force some Chinese companies to shift their operations to other Southeast Asian countries. Since labor costs are already more affordable outside of China, certain Chinese companies directly affected by the tariffs have acquired extra motivation to move their operations outside of the Chinese border. Additionally, China is moving towards increased automation, increasing the costs associated with doing business with them, outside of imposed tariffs.

Offshore Manufacturing Products Affected by Chinese Trade Tariffs

Your specific industry and the types of goods you need to secure from other borders will determine the costs that large Chinese tariffs will have on your business. The following is a partial list of the specific products that have been affected by the imposed tariffs on Chinese exported goods.

• Paper
• Wood
• Iron
• Steel
• Copper
• Nickel
• Aluminum
• Electronics
• Plastics
• Rubber

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Manufacturing Alternatives to China: Vietnam and Taiwan

Due to various reasons, including US tariffs on Chinese goods, many Chinese-based companies are now shifting their operations to other low-cost manufacturing countries such as Vietnam. Some of the more appealing aspects of doing business with Vietnam or Taiwan include:

• Lower Wages – According to some estimates, wages in China have doubled in the last ten years. Wages in Southeast Asian countries such as Vietnam and Taiwan have risen, but not at the same rate as China.
• Restrictions – China has a wide range of restrictive regulations on establishing production within its borders. Conversely, Vietnam and Taiwan have far fewer regulatory restrictions on products that move in and out of the country.
• Skilled Workers – Many companies currently doing business with Vietnam or Taiwan report that their workers are highly skilled.
• Natural Resources – Vietnam and Taiwan provide excellent stores of natural resources that are ideal for all types of manufacturing.

Outsourcing Vietnam’s Geographical Advantages

Since Vietnam generally suffers fewer natural disasters than neighboring countries, which can provide increased reliability and less economic impact during certain parts of the year. Vietnam is also very close to China, making logistical changes straightforward.

Sun Fast Provides Proven Manufacturing Outsourcing Capabilities Throughout Southeast Asia

At Sun Fast, we have the resources and proven capabilities to provide high-quality offshore outsourcing capabilities throughout Vietnam and Taiwan. Whether it’s steel, sheet metal, welding and stamping, or any other type of manufacturing material, Sun Fast can source high-quality materials from southeast Asia, providing a highly viable alternative to Chinese manufacturing sources.

Avoiding Chinese Tariffs Manufacturing in Taiwan or Vietnam Outsourcing

Chinese tariffs on steel products are currently around 25%. This added cost can often derail a project before it even begins. Vietnam sources a lot of its steel from China, and with a significantly lower tariff rate, imported steel sourced in Vietnam will be less expensive than steel acquired directly from China. Sun Fast can assist your company in avoiding high tariffs on the offshore manufactured products you need.

Depreciation of the US Dollar in China

Over the last several years, the US dollar has significantly depreciated within China. Conversely, the US dollar has continued to flourish in value within Vietnamese markets. As a natural offshore alternative to Chinese manufacturing, Vietnam can save significant amounts of money on the same good that China provides.

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