There are two general reasons to source products from China: Lower prices, and the availability of goods. However, there are a lot of challenges facing companies that are interested in sourcing from China.
Quality and consistency are two issues that have received a lot of attention in the world press recently. Intellectual property protection is another area to which you should pay attention. What you may find surprising is that not all goods are suitable for production in China.
The following table is from an article on How to Source Car Components in China (for a Premium Car Maker) and is generally applicable to sourcing in China. It describes factors that way in favor, and against, sourcing in China.