the cost of the china's supplier manufacturer

I have a business trip to supplier this week , i went to A company in suzhou , main product is connector, is a privace company , i got up early at 6 clock that morning , then by he xie hao speed railyway , i have been to suzhou station at 10:30 , the supplier's manger driver car pick me .to their company.

then we were going to lunch in a hotel , we ate a buffet at shangri la hotel ,
when we talk about product , he said the quality of product isn't a problem, but the question is price of
production , because our company asks supplier to reduce 5 percent cost every year . due to the employe wage and raw material has rised every year , we offer your company product is low profit . i tell to him that
he talk to our company buyer , after all , my main job is manger the quality of product . In addition, staff costs can be achieved by automated production, in order to reduce staff costs, it is a trend of china manufactory , so your company should receive this price of product., through by automation.

we had lunch at 13:00 , then we drive back to their company , I began to review products and inspection records , We last reviewed the non-conformance has completed at present, after confirm ,we would drink
tea with chat , He drove me to Suzhou railway station, and then I came home by railway, I came home eight o'clock already. I also thought about this cost of product.

after all , in order to reduce cost of produce, China's manufacturing needs through automation and innovation , it can be competitive survive.