Manufacturing Sector

China is the factory of the world and has been bestowed this honor year after year for the past 10 years. It doesn’t take long for someone to come to that same conclusion with a quick trip to the Guangdong province, or the area outside of Shanghai, Tianjin, Chengdu or Shenyang, where one sees literally thousands of factories employing tens of thousands of workers manufacturing everything from plastic parts to the integrated circuits that go into iPhones and iPads. Indeed, it is almost mind boggling to see so many factories with so many moving parts, and there is no doubt that the manufacturing sector in China is still far from mature, with much more growth to be achieved in the years to come. Of course, this growth is not without its growing pains, from product quality disputes to employee safety concerns, and from labor union squabbles to missed delivery deadlines.

IPO Pang has worked with numerous foreign enterprise factories over the years, and our lawyers and legal assistants are adept at identifying problem areas, researching local and domestic practices, and advising the foreign enterprise client on risk areas that need immediate attention. The industry is expected to go through a phase of consolidation in the years to come as the strong will flourish and dominate, thereby creating certain risks for the foreign enterprise client who may have outsourced manufacturing to a local company. IPO Pang understands the dynamics of the manufacturing sector. Whether the foreign enterprise client is outsourcing to a local factory, merging or acquiring a local factory, or operates a wholly foreign owned factory that is being pressured or squeezed by unfair local tactics, IPO Pang can deliver a creative and favorable solution to the problem.