In the game of business, China is becoming the dominant player at the cost of the US. The US is seeing their companies leaving and joining China’s team.  Many see this as a “foul play” and critique that outscoring and offshoring is pulling employment from a country that is already high in employment, is a strategy that businesses are using to hide their finances from investors and promotes sweatshops. However, coincidentally we Americans call all the right people to complain about this “then we hang up our Chinese-made phones and go shopping” (Cline). Many rally to stop offshoring and outsourcing overseas but forget the daily necessities we buy and use are in support of it. Many fail to also question, why do companies prefer to have their business functions done in other countries? Companies are not only offshoring to decrease expenses, but prefer China to overcome the U.S.’s domestic restrictions of specific activities.

Global brands are taking up the opportunity to directly outsource manufacturing to China and move their operations overseas. China is the go-to country for outscoring and offshoring. 65 percent of China’s revenues are from IT outscoring alone (Leach).  Its software outsourcing park is located in Dalian, with about 400 businesses that are expected to increase sales to 20 billion Yuan annually. America’s recession is the main reason why companies have moved overseas. Rough economic times forced business owners to cut down on cost and as a result has boosted China’s sourcing market. The Chinese government has made significant policy changes to extend this advantage and welcome in businesses. The government offers businesses financial support, subsidies, tax breaks, and intellectual property protection rights. China has also launched a 2013 campaign against malpractices and bribery. Even though this might be a burden to companies, those in compliance can experience ethical business dealings with others and create a better business environment nationally. The government’s active fight against corruption is attracting investments and businesses. That is just one of the many advantages to outsource or offshore to China.

Companies offshore to China to enter a new market. Galaxy Company not only found it easier to be closer to their biggest group of customers but expanded to China to compete in their market. A companies local presence in China, allows the company to gain more local knowledge which is hard to attain with the never ending disputes between China and the US. Companies are able to focus on their companies because they aren’t caught up in the foreign relations of China and the US. Instead of worrying whether their representative will be able to actually fly to China or their shipments are up to par with the U.S.’s and China’s shipping requirements, businesses can concentrate on core tasks. Their business will not be affected by the countries’ world power battles.

Carrying out research and company knowledge research in China is especially easy now, because of “compelling regional language advantage and cost arbitrage” (Leach). There are roughly 300,000,000 English learners in China and language is less of a problem for businesses that want to offshore to enter a new market.

Companies offshore to gain access to a new pool of talents. China has a more than 60% of high school graduates now attending a university (NYT) and is soon to be the new Ivy League nation with the largest higher-education sector in the world (Time Mag). With better educated students, companies can get more efficient and qualified employees. Offshoring allows companies to a better and large labor pool which may not be available locally in the US.

The main incentive for companies is no doubt, their profit but humans naturally sway to something with more advantages. For certain companies, China’s hold more advantages in the world of business and win their company as a result. America may need to stop playing the blame game and actually present “advantages” to win back their companies to the US.

Works Cited

"Advantages to Outsourcing in China." Advantages to Outsourcing in China. N.p., n.d. Web. 27 Mar. 2014. <http://www.allchinasourcing.com/china_sourcing_advantages.htm>.

"China." Outsourcing to. N.p., n.d. Web. 27 Mar. 2014. <https://www.sourcingline.com/outsourcing-location/china>.

Cline,  Andrew . "USA TODAY." USATODAY.COM. N.p., n.d. Web. 27 Mar. 2014. <http://usatoday30.usatoday.com/news/opinion/forum/story/2012-08-07/outsourcing-romney-obama-china-jobs/56859884/1>.

Leach, Adam . "Offshoring in China to hit $10 billion by 2015." Supply Management. N.p., 20 Sept. 2011. Web. 27 Mar. 2014. <http://www.supplymanagement.com/news/2011/offshoring-in-china-to-hit-10-billion-by-2015>.

"Offshoring Benefits." MicroSourcing News. N.p., n.d. Web. 27 Mar. 2014. <http://www.microsourcing.com/info/offshoring-benefits.asp>.

Xinhua. "China's improved regulations not barrier for foreign investors - People's Daily Online." China's improved regulations not barrier for foreign investors - People's Daily Online. N.p., n.d. Web. 27 Mar. 2014. <http://english.peopledaily.com.cn/90778/8384749.html>.

 The New York Times “The China Boom” Nov. 5, 2010