What Are the Top 5 Product Categories Being Manufactured in China?

China is the world’s largest manufacturer, responsible for roughly 1/3^rd of global manufacturing output. While China increasingly produces finished goods for export, they also play a key role in the supply chain of many international companies.

In this article, we’ll take a look at the industries where China produces the most goods for foreign companies.

*Please note that the figure given alongside each category is the total export value, including goods sold by Chinese companies.

Clothing and Accessories – ¥1120.6 Billion

China is the world’s most prolific manufacturer of clothing and accessories. China is responsible for 28% of the world’s clothing manufacturing, with major brands including H&M, Zara, and Uniqlo all choosing to manufacture clothing in China. With so many brands choosing to manufacture clothing in China, often from the same factories, it is important to find ways to stand out. As such, private labelling is common practice at some factories.

China is also the world’s largest manufacturer of footwear, with the Fujian, Guangdong, Zhejiang and Shandong provinces producing the vast majority of Chinese-made footwear.

Mobile Phones – ¥979.7 Billion

China is a major player in the mobile phone space, producing around 60% of the world’s mobile phones. Notably, smartphone giants Apple and Google both manufacture mobile phones in China.

Some companies have begun to diversify their manufacturing to include other countries, notably India and Vietnam. However, this has proven challenging. China benefits from an established, robust supply chain, skilled labour and niche manufacturing capabilities. This means that manufacturing smartphones in China is 20-50% cheaper. It also means that some parts are impractical to source from outside of China.

As such, China’s dominance in smartphone manufacturing is safe in the medium term.

Integrated Circuits – ¥956.8 Billion

Integrated circuits are chips made of silicon, featuring tiny, interconnected transistors. They are a key component in almost every electronic device, from children’s toys and electric toothbrushes to aeroplanes and spaceships. Without a steady supply of integrated circuits, the modern world would quickly grind to a halt.

China is the world’s second largest exporter of integrated circuits, with exports totalling $155.17 million in 2024. Experts expect continued growth in this sector, and the Chinese government continues to support it with direct investment.

Computers – ¥814.5 Billion

China is one of the world’s top manufacturer of computers. Computer giants such as HP, Lenovo and Dell all manufacture computers in China. In 2023, China produced 338.6 million computers. This includes 200 million laptops, 17.5% of the world’s total output.

This industry is only expected to grow, with the continued trend towards remote work, remote education, and the implementation of 5G technology all contributing to ongoing demand.

Motor Vehicles – ¥716.5 Billion

Historically, foreign carmakers needed to start a joint venture with a Chinese company in order to manufacture vehicles in China. However, since 2017, the Chinese government has allowed foreign carmakers to have full ownership. This has triggered a wave of investment, beginning with Tesla, who opened their first plant there in 2017.

This was followed by Ford beginning a joint venture, with majority control, in 2022. Volkswagen and BMW, who had both been active in China for a long time, also went on to purchase additional stakes in their Chinese joint ventures, giving them majority control.

Conclusion

Most of China’s manufacturing for foreign companies is in clothing, mobile phones, integrated circuits and motor vehicles. China’s dominance in manufacturing across these industries can be taken as a green flag for businesses. You can feel confident that if you are looking for reliable manufacturing in these sectors, you can find it.

However, identifying the right supplier can be a challenge. In addition, different regions of China have different manufacturing specialties. Taking this into account, as well as logistics and shipping can take up a lot of time and resources. If you don’t have expertise in this area, we highly recommend working with a sourcing company such as Easy Imex.