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There has been an understandable bias against companies who outsource manufacturing in China. However, as the economy moves to a global marketplace, strategies need to consider emerging markets for goods and services in all parts of the world. Key points were made recently in a WSJ article by Jeremy Haft titled “The China Syndrome,” where he clearly points out that “China’s rise need not drive America’s fall.” The article looks at the overall U.S. economy, where he states that “efficiently produces a wide variety of goods and services.” He goes on to say that “In most industries, we’re decades ahead of China. And, huge swaths of our economy — like the services sector and high-tech manufacturing — don’t even exist in China yet.”

This should be enough to allay unfounded fears that exist about outsourcing in China. Companies like Baysource Global work on projects where there is a high degree of low value add/high labor requirement in the actual manufacturing of the product. It remains that the products’ engineering and innovation are the product of their U.S. intellectual property holders. The fact of the matter is that as the base of wealth grows, China consumers will want quality products and services. As Haft goes on to say, “China is increasingly buying American and growing five times faster than any other market for U.S. exports.”

So before the uneducated make claims about a lopsided relationship between the two countries, they should consider this exciting age we are in. As Mr. Haft ends, “By tapping into its expansion and capitalizing on our strengths, America’s companies have a once-in-a-century windfall opportunity to build value, make money and create jobs here at home — not shutter the shop.”

David Alexander
BaySource Outsourcing Solutions