Once a laggard in industrial development, China is now at the forefront of progress

When I first encountered manufacturing in China, it was a realm brimming with potential but saddled with the Western view that it was nothing more than a producer of cheap, mass-produced goods.

In a small sense, I have been involved in a subsequent transformation that turned it into a powerhouse capable of crafting everything from everyday essentials to high-end products.

To look at this remarkable change, we have to go back 20 or more years, when there were far fewer foreigners in China. Back then, many people in my home country of Switzerland would ask for help in sourcing products from China. E-commerce platforms like Alibaba didn't exist yet.

The common approach was to travel to China in person, attend trade fairs and try to establish personal relationships with suppliers – unlike today, where digital platforms streamline sourcing and quality-control companies provide an added layer of security.

Those initial days were all about affordability. Buyers flocked to China seeking out low-cost goods and factories that delivered with speed and scale.

My first venture into product sourcing was an order for men's underwear. It came from a friend whose wife worked for a major mail-order company specializing in underwear and lingerie.

Through a Chinese waitress named Naiky, whom I met while she was studying in Switzerland, I made contact with her mother in China, who had experience in the textile industry. I was amazed at how quickly I received a quote and counter-sample, sparking my interest in the process.

That prompted me to learn about Chinese manufacturing from scratch, from product specifications and industry processes to customer standards.

In textiles, some fabrics hit the mark; others fell short. It was a shaky start, not just for me but also for an industry still learning its strengths. China could produce quality, but it needed clarity and commitment from partners.

Many factories in China were quietly tooling up to move up the chain from cheap goods to higher-quality products.

A visit to a ceramics factory in the southern city of Foshan captured this shift. The owner, Mr Li, proudly showed me tiles that matched anything available from Spain or Italy.

"How do you do it?" I asked.

"We've always had the ability," he said, "but it takes the right collaboration."

With modern equipment and a focus on quality, he managed to find overseas buyers, some from prestigious brands. His was the experience of an industry gaining confidence, moving from modest beginnings to something remarkable and teaching anyone watching what dedication could achieve.

Naiky's mother in China later retired and now lives comfortably in a spacious mansion in the city of Wuhan in central China's Hubei Province. Through forays into real estate investment, she has benefited greatly from China's property boom over the past two decades.

Meanwhile, Naiky has taken over the textile business and expanded it significantly. Today, the company specializes in ultra-large-size lingerie, which requires advanced technical expertise due to the necessary reinforcements.

By the time China's industry hit its stride, it was no longer just producing; it was creating. Brands like Xiaomi emerged, offering smart, accessible digital gadgetry that rivaled global leaders. Since then, the company has successfully ventured into electric carmaking.

One of its domestic rivals, BYD, came out with innovations like the lithium iron phosphate blade battery for electric cars and collaborated with DJI on a vehicle-mounted drone launching system used in aerial photography.

This month, BYD leapfrogged Tesla into market dominance by reporting 2024 revenue of 777 billion yuan (US$107 billion) and announcing a new battery technology that it claims can charge electric vehicles almost as fast as filling up a petrol tank.

Factories once marked by long hours and exhausting workweeks are buzzing with new ideas and advanced technology, boosting output and wages amid safer, better working conditions.

Where there once had been struggle, there is now a sense of shared gain and pride. China's transformation has come through collective effort.

I still keep in touch with Naiky and other suppliers, discussing topics like US-China trade tensions and tariffs. While most factories haven't been directly impacted yet, others are establishing contingency operations in Vietnam and Laos to mitigate risk. Relocation outside of China, if it comes to that, would leverage China's industrial strength across borders.

But for now, China's factories are embracing artificial intelligence, automation and green principles to step confidently into the future. From sleek electronics to sustainable fabrics, they're not just keeping up, they're guiding the way.

China's manufacturing journey is a tale of growth and grit. I've been lucky enough to witness it first-hand and to meet the people who have benefited from this remarkable transformation.

(The author has more than 30 years of experience in China as a financial consultant and geopolitical analyst. He holds an Executive MBA from Fudan University in Shanghai.)