China the world's factory

China became a commercial gold-rush country for every big companies in the world. China's vast pool of cheap labour was the major reason of its success : The wages of the workers there were a fraction of those in Western countries. Nowadays more than half of China's exports are generated by foreign-invested companies.

You may think China's product are still cheap because Chinese labour is cheap. But you will be wrong, now wages are rising in China and a growing middle class demands high quality goods and services.

It's true that despite its growth, China's living standard is still uneven. Some may know a life similar to the Western countries, while others still remain relatively poor. But there is much more to itChina's middle class demands high quality goods and services

The concept of "business ecosystems" first appeared in the early 1990s, it is defined as : An economic community supported by a foundation of interacting organizations and individuals, the organisms of the business world.

A business ecosystems does not take place in isolation, but rather relies on networks of suppliers and producers who are all involved in the process of production through competition and cooperation. It is essential for an efficient and low cost production. And China is a model of business ecosystems.

Shenzhen, a city bordering Hong Kong to the south, has evolved as the world's hub of electronics manufacturing and technology innovation. It has cultivated an ecosystem where everything is available in one single location : the component manufacturers, the assembly suppliers, the packaging suppliers and the distribution.

For example : Foxconn, the main company which manufactures Apple products, works with suppliers located in Shenzhen. All the components of the Iphone are located nearby the assembly factory. Actually, except few exceptions, all the smartphones and tablets come from Shenzhen.