Blog / How to Expand Your Manufacturing Business to China

How to Expand Your Manufacturing Business to China

A Practical Guide for Industrial Firms, OEMs, and High-Tech Manufacturers

China is the top manufacturing country in the world, contributing to around 31% of the world’s total manufacturing output.

By November 2024, China’s industrial production grew by 5.4% year over year, outpacing the prior month’s 5.3%.

Advanced manufacturing segments like AI-driven automation and smart factories also gained traction, aligning with China’s “Made in China 2025” strategy to become a more technology-intensive powerhouse.

At the same time, foreign companies operating in these areas must plan carefully to comply with regulations and navigate rising global attention on China’s industrial policies.

This guide outlines the key considerations for setting up or expanding a manufacturing presence in China. It includes insights on regulation, technology, partnerships, supply chain, and online presence.

Disclaimer: This guide is informational and does not constitute legal advice. Chinafy is not a legal or corporate advisory entity, and, given that every business is different, we suggest consulting with your internal legal counsel if you would like advice on any legal or compliance-related concerns, or alternatively we can connect you with one of our partners.

TL;DR

Strong industrial growth: China’s industrial output rose by 5.4% in November 2024, led by sectors like electronics, automotive, and chemicals.

Made in China 2025: The initiative focuses on advanced manufacturing and higher domestic content, creating opportunities for foreign firms that bring technology and expertise.

Tech and innovation push: AI-driven automation, smart factories, and R&D partnerships are in demand.

Policy scrutiny: Regulations around core industries, especially semiconductors, are tightening. Compliance and local partnerships help manage risks.

Supply chain advantage: China offers efficient infrastructure, but foreign businesses need to consider location, cost, and vendor reliability.

What is “Made in China 2025”?

“Made in China 2025” is a strategic plan introduced by the Chinese government in 2015 to transform the country’s manufacturing sector from being labor-intensive and low-cost to becoming more technology-focused, innovative, and self-reliant.

Foreign manufacturers seeking to expand into China should understand how “Made in China 2025” can affect their operations, such as qualifying for government incentives and meeting local content requirements. It’s also important to consider the competitive landscape, regulatory requirements, and geopolitical tensions that can impact operational stability.

Why consider China for your manufacturing business

Scale and growth

China remains the world’s largest manufacturing economy. Monthly industrial output has maintained solid growth, driven by domestic consumption, infrastructure projects, and exports. A well-established logistics network and supply chain ecosystem can support rapid production scaling.

Rising advanced manufacturing

Initiatives like “Made in China 2025” encourage local industries to move up the value chain and adopt advanced technology. Government incentives and industry collaborations can benefit foreign companies that offer specialized expertise, especially in automation, smart machinery, or high-tech components.

Strategic location

China’s infrastructure includes large ports, modern highways, and dedicated industrial parks, which support smooth inbound shipments of raw materials and outbound export of finished goods.

Domestic consumer market

China’s large consumer base drives steady demand for autos, electronics, and consumer goods. Many manufacturers see value in operating facilities near their biggest markets, reducing shipping costs and lead times.

Key market entry considerations

Navigating regulations and industrial policies

Compliance requirements: Each province may have its own approvals or licensing steps. Know your industry’s regulator, particularly if your products involve heavy machinery, electronics, or chemicals.

Trade controls: Sensitive sectors (e.g., semiconductors, telecoms) face tighter export controls from various jurisdictions. Review supply chain and components sourcing carefully to avoid violations.

Focusing on technology and innovation

Automation and AI: China’s industrial modernization efforts include AI-driven robotics and smart factories. Adopting or supplying advanced manufacturing systems can differentiate foreign firms.

Local R&D alliances: Collaborations with universities, research institutes, or local partners can accelerate product development and secure government incentives.

Data security: Manufacturing data can contain sensitive intellectual property. Review cybersecurity laws and best practices to safeguard proprietary designs or processes.

Forming strategic partnerships

State-owned and private enterprises: Partnerships with local OEMs or large manufacturers help with market access and regulatory navigation.

Industry clusters: Many areas host specialized clusters (e.g., automotive in the Yangtze River Delta, electronics in the Pearl River Delta). Engaging with these networks connects you to talent, suppliers, and logistics providers.

Joint ventures vs. WFOEs: A Wholly Foreign-Owned Enterprise (WFOE) gives full control but can involve more setup steps. JVs might offer quicker entry, but foreign partners should clarify ownership of technology and IP.

Optimizing supply chain and location

Regional strengths: Coastal provinces (e.g., Guangdong, Jiangsu, Zhejiang) offer strong supply chains and skilled labor for electronics, automotive, or textiles. Inland provinces can have lower labor costs but may lack certain infrastructure.

Vendor reliability: Vet suppliers or sub-contractors for quality and on-time delivery. Local site visits and due diligence are essential.

Logistics and transport: China’s port facilities and rail links to Europe (via the Belt and Road Initiative) can reduce lead times for export markets.

Building a strong online presence in China

Even industrial firms attract potential suppliers, partners, and employees through digital channels. However, foreign websites often suffer slow loading or partial functionality in China.

Why websites load slowly in China

Blocked or slow third-party resources: Services like Google APIs, YouTube videos, and hundreds of lesser known third-party resources are restricted, causing severe loading delays.

Infrastructure limitations: Hosting your site outside of China, even with a global CDN, can introduce high latency, as data has to travel further to get to the end user in China.

Testing and optimizing your site

Before making any changes, run speed tests from within China to see how your site performs. If you discover performance issues, consider the following options and their nuances:

Use a China-compatible CDN: Some content delivery networks have PoPs in mainland China (e.g., Tencent Cloud, EdgeNext, Alibaba Cloud) but typically require a local business entity and ICP filing. It’s also important to note that CDNs alone cannot solve all performance issues, as they won’t accelerate third-party resources that are blocked in China.

Minimize blocked or slow third-party resources: If you’re tailoring your site to a China-only audience, it makes sense to remove or replace resources from non-performant or blocked domains. This can improve loading speeds and ensure your site remains functional. However, if you’re using your existing global site, doing this would be detrimental to global visitors, and equally, the way third-party resources work in China differs and evolves over time so there is no one-off list or means to edit these resources. Changes will likely have to be made on an ongoing basis.

Consider onshore hosting: Hosting in China can be beneficial from a business perspective but comes with regulatory obligations like setting up a local entity and obtaining an ICP license. Also, like with using a China CDN, hosting your site in China doesn't automatically make it work there. It’s still necessary to optimize your website for third-party dependencies, content compliance and user experience.

Chinafy: Make your website run fast and fully in China

Chinafy offers an agile approach for both companies with either an onshore or offshore presence. Chinafy can optimize your existing site for Chinese users without necessarily requiring local hosting.

How Chinafy helps websites load fast and fully in China:

Removes, replaces, or optimizes third-party resources: Chinafy combines both in-person and platform-level features to detect and replace blocked or slow resources that cause loading delays.

Leverages a China-friendly CDN: Speeds up content delivery with a China-compatible CDN depending on whether your business meets certain prerequisites.

Requires minimal IT involvement: Typically takes only a couple of weeks to implement and maintains both global and China-specific performance in parallel.

Key takeaways

Market potential: China’s industrial output growth and government push toward advanced manufacturing create a steady demand for technology-driven solutions.

Policy alignment: “Made in China 2025” and related initiatives favor high-tech production, local sourcing, and joint development.

Comprehensive planning: Secure required licenses, choose optimal locations, and maintain robust supplier vetting to manage risks.

Partner effectively: JVs, alliances with state-owned enterprises, or integration into industry clusters can accelerate market access.

Optimize your website: Ensure your websites load quickly and reliably in China, either by using onshore solutions or Chinafy, the only solution that can achieve near-native performance even if your business technical stack is offshore.

A balanced approach that respects local regulations, leverages advanced technologies and works with reputable partners can position manufacturing businesses for success in China.

The insights shared in this article are based on our research, observations, and experiences at the time of writing. They are intended to inspire ideas and foster conversation, not to replace professional consulting advice tailored to your unique situation. Always consider your specific needs before making business decisions.

Don't get left behind.
Optimize your website for the world's fastest-growing consumer market. Start today, cancel anytime.
Make your website work in China
Fill out the form and one of our Chinafy team members will reach out to you within 1 business day to book an initial call or with a plan for next steps.
check30%-40% faster compared to using a CDN alone.
checkVerifiable results in just 2 weeks, instead of 1-2 years.
checkLittle to no action required from your IT teams.
"Chinafy has made it possible for us to be sure that our web visitors in China have the same good experience as all our other visitors in the rest of the world."
Michela Nalin Francek, Marketing Manager for Nolato
"Over 1 million engineers use SnapEDA each year all over the world. We were attracted to Chinafy's service because of how easy they made it to support the Chinese market."
Natasha Baker, CEO & Founder of SnapEDA
We are very happy with working with Chinafy. They went above and beyond to ensure we help MIT Professional Education deliver world-class online education in China.
Ignacio Cerro, CFO, Global Alumni for MIT Professional Education
"Consistency is crucial for us.
Chinafy fits the bill of what we were looking for."
Jonathan Rhodes, Marketing Technology Manager of Registrar Corp
"The process was super easy and I'm really glad we selected your team. The experience has been beyond my expectations."
Nicolas Duchesne-Lafoest, Product Marketing Manager 
"Chinafy went above and beyond to help me produce my event. I'm not sure I would have been successful without them. The client was elated that we managed to fulfill the request to live-stream into China so quickly."
Kevin Denham, Technical Director at ADM Productions
To start, please share a bit more about you.
Which website do you want to Chinafy?
Tell us your name?
What best describes your company role?
What's your Work Email Address?
What would you like to discuss?
Have a discount code?
By clicking 'Get Started', I also agree to Chinafy's Terms of Service & Privacy Policy.
close
Thanks for getting in touch!
One of our China experts will be in touch with you via email within the next 24 hours with

1 - Expected post-Chinafy results
2 - Your Custom Plan
3 - Next steps.

P.S. Make sure to check your promotions inbox in case our message lands there.

Please feel free to check out our case studies or blog in the meantime.
[[embed: get started form inline type]]

Related Stories

Load More
×

Notey will use the information you provide on this form to be in touch with you and to provide updates and marketing. Please let us know all the ways you would like to hear from us:

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at community@notey.com. We will treat your information with respect. For more information about our privacy practices please visit our website. By clicking below, you agree that we may process your information in accordance with these terms.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.