For more than 40 years, China has been the world’s factory. However, as Chinese businesses move their supply chains outside of the nation, this may soon change.
Domestic companies from the world’s largest manufacturer are now moving their supply chains outside of the mainland, but not all of the manufacturing in China.
A combination of geopolitical risks and rising costs have compelled them to explore alternatives.
According to a principal at a consulting company, “We already see a lot of China-based manufacturers are actively looking to set up overseas productions with anticipation of the supply chain challenges and political risks.”
While India, which is expected to surpass China as the world’s most populous country by the middle of 2023, would probably benefit greatly from the change. Much of the transfer is going to neighbouring Southeast Asian nations like Vietnam, Thailand, Malaysia, and Indonesia.