Contract Manufacturing in China: A Guide to Outsourcing Production Effectively

Contract Manufacturing in China A Guide to Outsourcing Production Effectively

In-house production of your own components and products can work out to be expensive. Not only will you have to hire the right manpower for it, but you also need to be concerned with buying, servicing, repairing, and replacing machinery and equipment. To avoid the costs associated with in-house manufacturing, discerning businesses rely on contract manufacturing in China, and you should, too, especially if you want a cost-effective way to outsource production. It may also allow your business to introduce new and innovative products to the market at a faster rate, thereby helping you to get ahead of your competition. And, all this, without wasting resources like your time and money.

Selecting the right service

That said, not every contract manufacturing solution in China may be reliable. Choose the wrong service provider and you risk damaging your reputation and financial health. So, it’s important to be discerning when selecting a contract manufacturer who has your best interests.

Finding a contract manufacturer doesn’t have to be difficult. Here are two easy ways to help you find the right service:

Choose an established and reputable company


Look up the different contract manufacturing companies in China and make a list of the highly recommended ones. Compare them in terms of experience and expertise in what they do, and make sure that they are an established contract manufacturer that is recognized in their industry. They should have a good reputation of consistently providing high-quality services, which have helped countless businesses save money and time.

Find out what they can do for you

Choose contract manufacturing in China that is known to provide the best pricing, third-party inspections, and on-time deliveries. They should maintain the most appropriate standards and consistently deliver high-quality products. Some of the leading companies are specialists in different services, making them a one-stop source for everything you will need for your product, such as designing and distribution.

Other things you must consider

Keep in mind that a contract manufacturer should be able to contribute in cost savings in terms of producing products and components. So, it’s important for you to be able to trust them to deliver on their guarantee to get things done on time, without going overboard your budget. Moreover, they need to have the capacity to take care of any order and deliver only high-quality goods.

Before you start looking

Registering your intellectual property (IP) in China is one of the most important things you must consider before you start looking for contract manufacturing companies in China. Your IP rights include copyrights, design patents, and trademarks.

In China, the company that initially registers a patent or a trademark is the first one to be acknowledged with it, regardless of the product’s rights in the UK or US. That means that if another company registered your trademark because you failed to do so, the manufactured goods in China might not be exported because as per local laws, you have infringed the intellectual property rights of that other company.

Prepare an NNN agreement

Besides registering your IP in China, make sure they are willing to sign a non-disclosure, non-use, and non-circumvention agreement, which should protect your intellectual property rights. The document must be in Chinese and enforceable in a court in China. With a strong contract, the contract manufacturer will not be able to copy your components or products.