Sourcing in Zhejiang: Essential Manufacturing Information

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Introduction

Commonly known as the “Land of Fish and Rice”, Zhejiang aptly has rice as its main crop, followed by wheat. The towns of Zhejiang have also been noted for handicraft production, including silk for which it is ranked second amidst its other competing provinces. Over the years, Zhejiang has been known for its entrepreneurial spirit, acquiring its very own development model coined as the "Zhejiang model".

Furthermore, Zhejiang offers opportunities and a vast amount of resources for businesses seeking to source for suppliers and manufacturers. Read on to find out more about the various sourcing opportunities Zhejiang has to offer.

General Background

Zhejiang borders Shanghai to the north and Fujian to the south. Unlike other Chinese provinces that rely greatly on foreign investment to advance their respective economies, Zhejiang's economy on the other hand has remained independent and acquires local economic policies that are inward-looking. In recent times, its close proximity and link to Shanghai through a highway bridge has helped to spur its economic development. Zhejiang distinguishes itself by placing great emphasis on active ingenuity, strong work ethics and an entrepreneurial spirit dubbed the “Zhejiang model”.
The major manufacturing sectors of Zhejiang include electromechanical industries, textiles, heavy industries & metallurgy and plastics. In particular, the Hangzhou Bay area (環杭州灣) is a crucial IT industry base apart from Beijing and Shanghai. The Zhejiang local government also aims to speed up the expansion of other hi-tech industries like biotechnology, medicine and new materials.
Technology
The production of electrical components, computers, telecommunication devices and other electrical equipment by Zhejiang suppliers make up 15% of Zhejiang's gross industrial output.
Zhejiang's light manufacturers also play an important role for Zhejiang's economy, as the valued-added output of light industries contributed to 43% of the total value-added industrial output in 2012.
Textiles
Zhejiang textile producers account for up to 10% of Zhejiang’s gross industrial output, making it one of its most prominent manufacturing sectors. These include the production of chemical fiber, leather products, wooden furniture and toys, to name a few.
Many established national brands have also sprung up in recent years, including Wahaha (娃哈哈), Youngor (雅戈爾), Auxgroup (奧克斯) etc
Heavy Industries & Metallurgy
Since 2000, heavy industries such as electrical equipment and machinery, raw chemical materials and chemical products etc. have developed rapidly, and the value-added output of heavy industries accounted for 57% of the total output in 2012. As of 2013, the smelting & pressing of ferrous metals contributed to 4.2% of Zhejiang’s gross industrial output, on top of electrical equipment and machinery which accounted for 9.2%.

Consultants in Zhejiang

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