Is it cheaper to manufacture in Europe or in China?
No official statistic answers it directly. Eurostat puts manufacturing labour in the EU at EUR 35.0 an hour in 2025 and in Latvia at EUR 14.9; China's statistics office reports a different measure, an average annual wage of CNY 113,594 for manufacturing employees in urban non-private units. Sea freight from Shanghai to Rotterdam takes 30-35 days, a forwarder says.
What does manufacturing labour cost in Europe and in China?
In the EU an hour of manufacturing labour cost EUR 35.0 on average in 2025, from EUR 14.9 in Latvia to EUR 47.2 in Sweden among the five Baltic and Nordic countries (Eurostat). China's National Bureau of Statistics reports CNY 113,594 as the 2025 average annual wage of manufacturing employees in urban non-private units.
| Where | Figure | What it measures | Year | Source |
|---|---|---|---|---|
| EU (27 countries) | EUR 35.0 an hour | Total hourly labour cost in manufacturing, including non-wage costs | 2025 | Eurostat |
| Latvia, lowest of the five | EUR 14.9 an hour | The same Eurostat measure | 2025 | Eurostat |
| Sweden, highest of the five | EUR 47.2 an hour | The same Eurostat measure | 2025 | Eurostat |
| China, manufacturing | CNY 113,594 a year (CNY 107,987 in 2024) | Average annual wage of employees in urban non-private units, manufacturing; wages only | 2025 | National Bureau of Statistics of China |
| China, all sectors | CNY 129,441 a year | Average annual wage of employees in all urban non-private units | 2025 | National Bureau of Statistics of China |
In the bureau's words, "the average annual wage of employees in urban non-private units nationwide was 129,441 yuan." Manufacturing wages rose 5.2% on 2024. Employees of private units are outside these figures.
Can the European and Chinese figures be compared directly?
No. Eurostat measures the total cost of an hour of work to the employer, including non-wage costs; China's bureau measures yearly wages of employees in urban non-private units. Hours worked per year, non-wage costs and the exchange rate all sit between the two. No official hourly comparison between Europe and China was found.
This page therefore does not turn the yuan figure into euro or into an hourly rate: any such number would rest on assumptions the sources do not give. Labour is also one part of a unit price, next to materials, packaging, batch size, freight and duty, so a gap in labour cost is not the same gap in what you pay per unit.
How long does sea freight from China to Northern Europe take?
Thirty days or more. A Danish freight forwarder, in a page updated in March 2026, gives 30-35 days from Shanghai to Rotterdam and 32-36 days to Hamburg. Times to Baltic and Nordic ports such as Riga, Tallinn, Klaipėda or Gothenburg were not found in an official or carrier source. Production time comes on top.
In the forwarder's words, "Shanghai til Rotterdam tager normalt 30-35 dage med søfragt" (Shanghai to Rotterdam normally takes 30-35 days by sea freight) (Sino-Shipping).
The route can change the time. Kuehne+Nagel reports that "MSC confirmed on 25 August that it had begun restoring Suez Canal transits", and cites Sea-Intelligence's count that 19% of westbound Asia-Europe services use Suez. Hapag-Lloyd, it says, had not followed Maersk back.
Are European companies moving sourcing out of China?
The surveys point both ways. QIMA, an inspection and audit firm, reported in January 2026 that nearshoring and reshoring reached a record 14% of EU sourcing. Yet in the EU Chamber of Commerce in China's 2026 survey, 94% of respondents called China an important sourcing destination and 75% said production there is more efficient than elsewhere.
| Survey | Published | Who answered | Finding |
|---|---|---|---|
| QIMA Q1 2026 Sourcing Barometer | 15 January 2026 | QIMA's own inspection and audit data for 2025; sample size not stated | Nearshoring and reshoring a record 14% of EU sourcing; China, Vietnam and Bangladesh 70% of Western European inspections and audits in 2025, down from 77% in 2021 |
| EU Chamber of Commerce in China, Business Confidence Survey 2026 (as reported by Kreab) | 27 May 2026 | European companies operating in China | 94% call China an important sourcing destination; 75% find their China-based production more efficient; only 53% rank China among their top three investment destinations, the lowest on record |
| EU Chamber of Commerce in China, Shanghai chapter (as reported by Qatar Tribune) | 28 January 2026 | 324 European companies operating in China | Seven in ten reviewing their supply chain strategies; one in ten building alternative supply chains outside mainland China |
Kreab's summary of the Chamber survey reads: "A striking 94% of respondents identified China as an important sourcing destination." It adds that "75% said their China-based production is more efficient than operations elsewhere." Everyone in both Chamber surveys already operates in China, so the figures describe firms that are there, not buyers who left.
How fast are labour costs rising in the Baltics, the Nordics and China?
Fastest in Lithuania and Latvia of the countries on this page. Eurostat's figures for the fourth quarter of 2025 show hourly labour costs up 9.0% on a year earlier in Lithuania, 7.4% in Latvia and 5.2% in Estonia, against 3.4% in Sweden and 2.9% in Finland. China's manufacturing wages rose 5.2% in 2025, on its annual measure.
For the EU as a whole, "hourly labour costs rose by 3.3% in the euro area and by 3.7% in the EU" (Eurostat, 19 March 2026). Latvia's rose twice as fast as the EU's, from a level of EUR 14.9 an hour in manufacturing against the EU's EUR 35.0.
| Country | EUR per hour, manufacturing, 2025 | Change, Q4 2025 on Q4 2024 |
|---|---|---|
| Latvia | 14.9 | +7.4% |
| Lithuania | 16.4 | +9.0% |
| Estonia | 19.5 | +5.2% |
| Finland | 43.6 | +2.9% |
| Sweden | 47.2 | +3.4% |
| EU (27 countries) | 35.0 | +3.7% |
What does your product decide for you?
Three things: how much of its cost is labour, how often you restock, and how many units you order. A product with a high labour share feels the wage gap most; a fast-selling product feels the month at sea most; a small first order narrows the field to manufacturers that accept one.
| If your product | It points you to | What that choice costs you |
|---|---|---|
| Has a high labour share, such as sewn or assembled goods | Comparing labour first: within the five countries, Latvia and Lithuania have the lowest cost | In the Baltics, EUR 14.9-19.5 an hour (2025), up 5.2-9.0% in the year to the fourth quarter of 2025. In China, wages measured differently, plus freight and import duty |
| Sells fast and needs frequent restocking | A manufacturer within reach of your market | In Europe, the European labour rate, up to EUR 47.2 an hour in Sweden. From China, 30-35 days at sea from Shanghai to Rotterdam on every restock |
| Starts with a small first order | Manufacturers that publish a small minimum: 27 of those listed on NordSourced state 500 finished units or fewer | A shorter list to choose from; the price per unit is the one quoted for your quantity |
Each choice has its cost. Choosing Sweden or Finland costs labour at EUR 47.2 or EUR 43.6 an hour (2025). Choosing the Baltics costs labour of EUR 14.9 to EUR 19.5 an hour, the fastest-rising of the five. Choosing China costs about a month at sea before each delivery to Rotterdam or Hamburg, on top of production. To compare, ask both sides for a written quotation on the same brief; which payment terms and Incoterms are normal explains the delivery terms.
Questions and answers
Is labour cheaper in China than in Europe?
The official figures cannot answer that directly. Eurostat reports EUR 35.0 an hour for manufacturing labour in the EU in 2025, including non-wage costs; China's statistics office reports CNY 113,594 a year in wages for manufacturing employees in urban non-private units. No official hourly comparison of the two was found.
What is the average manufacturing wage in China?
CNY 113,594 in 2025, up 5.2% from CNY 107,987 in 2024, according to China's National Bureau of Statistics. It is the average annual wage of employees in urban non-private units in manufacturing. The average for all urban non-private units was CNY 129,441. Employees of private units are outside both figures.
What does an hour of factory labour cost in the EU?
EUR 35.0 on average in manufacturing in 2025, according to Eurostat, including non-wage costs. Among the Baltic and Nordic countries it ranged from EUR 14.9 in Latvia, EUR 16.4 in Lithuania and EUR 19.5 in Estonia to EUR 43.6 in Finland and EUR 47.2 in Sweden.
Is it cheaper to make private label products in the Baltics than in China?
No source compares the two on unit cost. Labour in Latvia cost EUR 14.9 an hour in 2025 and in Lithuania EUR 16.4, less than half the EU average of EUR 35.0, while China reports wages on a different, annual basis. Materials, batch size, freight and duty decide the unit price, so compare written quotations for the same brief.
How long does shipping from China to Europe take by sea?
A Danish freight forwarder, updated March 2026, gives 30-35 days from Shanghai to Rotterdam and 32-36 days to Hamburg. Times to Baltic and Nordic ports were not found in an official or carrier source. The route matters too: Kuehne+Nagel cites a count of 19% of westbound Asia-Europe services going through Suez.
Are container ships using the Suez Canal again?
Partly. Kuehne+Nagel reports that CMA CGM, Maersk, MSC, Wan Hai and Cosco Shipping run services through Suez, that MSC confirmed on 25 August it had begun restoring Suez Canal transits, and that Hapag-Lloyd had not followed Maersk. It cites Sea-Intelligence's count that 19% of westbound Asia-Europe services use Suez.
Are European companies leaving China?
Few say so. In the EU Chamber's Shanghai chapter survey of 324 companies, reported on 28 January 2026, seven in ten were reviewing their supply chains and one in ten was building alternatives outside mainland China. In the Chamber's 2026 survey, 94% still called China an important sourcing destination.
How much of EU sourcing has moved closer to home?
A record 14% in the past year, according to QIMA's sourcing barometer of 15 January 2026, which rests on its own inspection and audit data. QIMA also reports that China, Vietnam and Bangladesh made up 70% of its Western European inspections and audits in 2025, down from 77% in 2021.
Why do European companies still source from China?
In the EU Chamber of Commerce in China's 2026 survey, released on 27 May 2026, 75% of respondents said their China-based production is more efficient than operations elsewhere. At the same time only 53% ranked China among their top three investment destinations, the lowest on record, and 68% said doing business there had become more difficult.
Which Baltic or Nordic manufacturers accept orders of 500 units or fewer?
27 of the 49 manufacturers listed on NordSourced that publish a minimum order state 500 finished units or fewer, data of 14 Oct 2026, for example Allreasons, Amber Linen, Aukmergės baldai, Comco. Each figure belongs to one service, often a ready-made product, so read it on the profile and see which manufacturers take a small first order.
How fast are labour costs rising in the Baltics?
Faster than the EU average. Eurostat's figures for the fourth quarter of 2025 show hourly labour costs 9.0% higher than a year earlier in Lithuania, 7.4% in Latvia and 5.2% in Estonia, against 3.7% for the EU. The level is still lower: EUR 14.9 to EUR 19.5 an hour in Baltic manufacturing in 2025.
How should I compare a European and a Chinese quotation?
Ask both for a written quotation on the same brief, quantity and delivery term, then add to the Chinese price the sea freight, import duty and the stock you carry during 30-35 days at sea. This page gives no average landed cost, because none of the sources used here publishes one for private label goods.
Where to go next
Sources
- Eurostat, Labour cost levels by NACE Rev. 2 activity (lc_lci_lev), manufacturing, 2025, Eurostat. Checked 12 Oct 2026.
- Eurostat euro indicators, labour cost index, fourth quarter 2025 (19 March 2026), Eurostat. Checked 13 Oct 2026.
- Average Annual Wages of Employees in Urban Units in 2025, National Bureau of Statistics of China. Checked 13 Oct 2026.
- Sea freight from China: transit times (Danish-language page, updated March 2026), Sino-Shipping (freight forwarder). Checked 13 Oct 2026.
- Ocean carriers accelerate their return (news article, content to August 2026), Kuehne+Nagel. Checked 13 Oct 2026.
- Weekly China Insight, 29 May 2026 (EU Chamber of Commerce in China, Business Confidence Survey 2026), Kreab Beijing. Checked 13 Oct 2026.
- Over 70% of European firms in China review supply chain strategies: survey (28 January 2026), Qatar Tribune. Checked 13 Oct 2026.
- QIMA Q1 2026 Sourcing Barometer (15 January 2026), QIMA. Checked 13 Oct 2026.
Directory figures are counted from the manufacturers listed on NordSourced, each listed because its own website says it makes products for other brands; see how we check. This page is general information, not legal advice. Found a mistake? Tell us.