Why are Chinese factories turning to Bangladesh Essay

Why are Chinese factories turning to Bangladesh - Essay Example This scenario has been a major instigator for business organisations in China to look forward to better and more convenient option especially for manufacturing purposes in a foreign destination. China, in recent years, has been regarded as one of the fastest developing economies in the world. One of the key reasons behind the continued and sustained growth of the Chinese economy has been industrial growth (World Bank Office, Beijing, â€Å"China Quarterly Update†). However, in recent years the Chinese economy has witnessed a noticeable slowdown. The volatile world economic environment as well as rigid domestic polices have the combined factors that have contributed towards this scenario (World Bank Office, Beijing, â€Å"China Quarterly Update†). Thus, in order to mitigate this problem the Chinese factories or manufacturers have started to look beyond their own shores to import products. Consequently, Bangladesh has become a favourable option for them because it provide s efficient workers and comparatively lower wage rates. This strategy by Chinese manufacturers has been mainly prompted by the prevailing condition in their own market to manufacture products (Cawinfo, â€Å"Chinese Factories Turn to Bangladesh as Labour Costs Rise’). Thesis Statement The report intends to discuss the key reasons behind the Chinese factories turning to Bangladesh as a destination for especially importing products. The major driving forces of globalisation have also been considered in the report to comprehend the scenario. Globalisation as a Driving Force for Chinese Factories to Turning to Bangladesh The drivers of globalisation have been an imperative factor behind the Chinese manufacturers desiring to outsource their business in a foreign destination such as Bangladesh which majorly includes, open markets, International Trade Relation Policies, progress in transport and information technology, privatisation and liberalisation (A Global Ethic Now, â€Å"Dr iving Forces Behind Globalisation†). These key drivers that have encouraged the Chinese factories to turn to Bangladesh as a possible location for outsourcing are opening up of different national markets to all sorts of companies and removal of trade restrictions. However, in recent times, the one of the biggest problems which has been faced by Chinese manufacturers is the labour crisis. In China, a continued war in relation to labour rights has been a critical issue which has affected the industrial sector in recent times. The war has been engaged with a huge number of people who come under certain different categories of business world. The workers, trade unions, corporate, Non-Governmental Organisations (NGOs) and political parties in China are deeply engaged in this serious issue. It has resulted in an impact on worker privileges, wages, working environment in China. This battle is badly affecting the Chinese economic conditions. It has become a tough task for manufacturin g organisations to abstain from the intermediary cooperation among worker organisations and their allies to procreate a sustainable relation in between the justice related to economy and social activities. It is quite apparent that a host of challenges for worker and social movements are being created in the economy of China. The manufacturing industry which relies significantly upon the workers is facing major strife to deal with