Manufacturing in China Vs. Germany

I have been presented with the opportunity of suggesting another country in which we could operate our manufacturing plant. I have come up with two promising locations located in China and Germany. In order to determine which country is the best option for our business I set out to answer four main questions. Which country has the raw materials we need to manufacture our products? Which country has the most political stability? What are the trade and investment policies? How stable is the local currency? All of the answers that are derived from these questions will allow our company insight into which country would offer us the best site for our manufacturing plant.

China

China's Raw Materials

Since we will be operating internationally, it would be more beneficial for our company if we could utilize local resources to create our products. There are three particular raw materials that we will utilize including sodium chloride, phosphate, and chlorine. China is the second largest country that produces chloride or salt. China produces forty-eight million tons of chloride a year (The salt industry, n.d.). China is also the second largest company that produces phosphate. China produces 24 thousand tons of phosphate on a yearly basis. As for the chlorine, I could not locate if China produces chlorine or if they have it imported. Further research will need to be performed in order for us to determine the cost associated with purchasing chlorine.

China's Investment Policies

China has a few investment and trade policies that we need to understand before operating our manufacturing facility internationally. The first one is known as the Joint Commission on Commerce and Trade. "Joint Commission on Commerce and Trade (JCCT) is a government-to-government consultative mechanism that provides a forum to resolve trade concerns and promote bilateral commercial opportunities" (Office of the Unites States Trade Representative, 2007).