Foreign businesses have comparatively high reliance on Chinese injection molding suppliers, and it is difficult for them to find other manufacturing capabilities in the near future. Despite the fact that the United States has applied tariffs to China, the majority of American purchasers continue to choose to continue purchasing from China, especially for small and medium-sized enterprises, whose reliance on China is greater. These companies are dependent on Chinese core suppliers to assemble products. Once the supply chain is cut off, production will come to a standstill.
Specific manifestations of the degree of dependence
Limited impact of tariffs: Although the United States has imposed tariffs on China, the irreplaceability of Chinese injection molding manufacturers is still there. American purchasers take a wait-and-see approach under the pressure of tariffs, yet they have not actually retreated, especially for small and medium-sized businesses, which have basically no other choice.
The degree of dependence is embodied in the following areas:
Restricted tariffs' impact: In spite of the United States imposing tariffs on China, Chinese injection molding manufacturers' irreplaceability is not shaken. Under the tariffs' pressure, American purchasers take a wait-and-see approach, but they have not actually withdrawn, especially for small and medium-sized enterprises, which have almost no other choice.
The secret to technical support: Even if large American corporations try to outsource orders to other countries, due to the high technical requirements, they still have to return to China to ultimately seek solutions. For instance, the production of high-precision parts is completed much more quickly in China than in other countries.
Engineer Manpower Advantage:
China's engineer manpower advantage gives China a tremendous edge in injection molding manufacturing. For the United States to re-capture its full "factory capability" will at least take ten years; and the restoration of its "engineer capability" will perhaps even take longer.
Reasons for high dependence
Deep supply chain integration:
The Chinese injection molding manufacturers are an important part of the global supply chain. Many foreign firms rely on Chinese core suppliers to build products, and therefore it is difficult for them to find alternative manufacturing capabilities.
Technical Advantage:
China has a technical advantage in injection molding, which makes it difficult for foreign firms to find factories in other countries that can fully meet the technical requirements.
Engineer bonus:
China has a huge and skilled human resource of engineers that gives it an added competitive edge in injection molding manufacturing.