Sourcing in Guangdong: Essential Manufacturing Information

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Located on the coast of the South China Sea, Guangdong—also known as Canton or Kwangtung— is one of the most populous provinces in China, surpassing Henan and Sichuan as it registered close to 80 million permanent residents in 2005.
Guangdong acquires the status as an economic powerhouse, topping the total GDP rankings among all provincial-level divisions since 1989. Moreover, its 2011 nominal GDP exceeds India's by more than half. It has the fourth highest GDP per capita amid all Chinese provinces. Guangdong also hosts the prime Import and Export fair in China, known as the Canton Fair, in Guangdong's capital city of Guangzhou. With this, it comes as no surprise that companies have moved to Guangdong not only for business ventures but also to source for suppliers and manufacturers. Read on to find out more about Guangdong's specialized manufacturing sectors as well as tips & advice.

General Background

Guangdong is the economic center of Southern China that also borders Hong Kong and Macau which consist of China's five original Special Economic Zones. Guangdong's most prominent industry is the logistics industry and the light manufacturing sector that includes the production of electronics, chemicals, bio-pharmaceuticals, automobile parts and construction materials.
The electronics industry in Guangdong contributes to 41% of the total industrial output and its wide array of economic incentives and 22 state-level economic development zones have also appealed to foreign investors.
Guangdong has a niche in the light manufacturing industry. Output of light industries used to account for over half of the province's total industrial output. Major products include electrical appliances such as television sets, electrical fans and refrigerators and communication equipment.
Heavy Industries & Metallurgy
In current years, Guangdong's industrial sector has shifted towards heavy industries as well. The share of heavy industries in gross industrial output rose from 47.1% in 2000 to 62% in 2013.
In the bid to bolster their world standing, Guangdong's automotive producers have recently upgraded and developed themselves to pit against other countries' biggest brands. As of 2012, automobile production in Guangdong made up 4.0% of gross industrial output and this figure is expected to rise.
Garments & Footwear
Guangdong's garment & footwear manufacturers also form the bulk of Guangdong's total industrial output, amounting to close to 6% as of 2012. Several manufacturers from Guangdong export up to 90% of their goods to companies in North America and Western Europe.

Major Areas – Tianjin

Zhuhai, a major city in Guangdong, has developed at a fast pace ever since it became a Special Economic Zone (SEZ) in 1980. Its strategic position bordering Macau has provided a gateway for foreign investment into the SAR.
Zhuhai's main industries centre on the light-manufacturing sector as well as electronics, information technology, home electrical appliances, petrochemicals and bio-pharmaceuticals. Its two shipping ports and its domestic airport link it to the rest of Asia, making it easy for the export of goods.

Consultants in Guangdong

As sourcing for trusted and reliable suppliers can be complicated and daunting, you can engage a consultant or inspection agent in Guangdong. For selection of specific electronic manufacturers, you can discover more tips here. If you are importing from the European Union (EU), you may want to check toys standards and regulations.