One of the secrets behind China as the “Factory of the World” is the mass specialization of towns on the production of single items. Many Chinese towns are dedicated to producing a single type of product. What are the prospects for the specialty town approach? It is July, it’s a hot and humid 35°C outside […]
China leads the global smartphone market both in terms of manufacturing and smartphone brands. China has built up a remarkable lead in the global smartphone market over the last decade, both in manufacturing and brands. But things may be changing Throughout the recent China-US trade war, one consumer electronics product has been conspicuously exempt from […]
Elon Musk’s Tesla is bucking many trends in its new venture in the massive China market. Tesla is known for going against the grain, but will this tactic prove successful in China? At an event held at Tesla’s brand-new Shanghai factory on January 7, CEO Elon Musk was recorded busting out some awkward dance moves […]
Companies are considering moving production out of China, but how many can successfully do so? The diversification of production away from the “Factory of the World” is happening, at least to some extent. But some industries are finding it hard to break free of the China hold.
Trade tariffs, rising labor costs, COVID-19 and other factors have caused manufacturers in China to consider diversifying their supply chains. To what extent will Southeast Asia benefit from this shift?
China has taken the lead in the global shipbuilding industry, followed closely by South Korea and Japan. Will they be able to hold on to their top spot?
What does the future of Chinese state-owned aircraft manufacturer Comac and its top products look like?
The World Bank estimates that up to 77% of jobs in China could be made redundant by machines in the long term. Investing in robots will become more attractive for manufacturers. The Chinese government also pledges to make China a “world factory” of robots. But real changes are much slower. Reports say that large numbers of workers are still used on production lines doing repetitive tasks such as scrubbing speaker systems with toothbrushes. Despite the fact that China’s labor costs are six times higher than 10 years ago, workers are often still cheaper than robots in short term.
China’s once-mighty industrial heartland in the Northeast, or Dongbei, has fallen on hard times in recent years. Could the key to its revival lie in the American Rust Belt experience? As happened in the US Rust Belt, firms in Dongbei, almost all state-owned, started to struggle in the 1980s. They have been in decline ever since, leaving local governments with a cluster of problems, including heavy industry pollution and high debt levels, which would be instantly recognizable to policymakers in Gary, Indiana, or Pittsburgh, Pennsylvania. Now that its counterparts in the West have now largely transcended the phase, what can Dongbei learn from the American rust belt’s experience?
For decades, China has been a top destination for foreign firms to move their operations abroad, now the trend is reversing—Chinese firms, especially manufacturers, are now moving to the US, not only to lower the cost of production but also to build their brands in global market. Indeed, China is losing its old advantage of cheap labor and raw material, and in certain parts of the US, the land is much cheaper than in China. Meanwhile, the re-booming US economy, flexible financial system and beneficiary tax policies are also driving ambitious Chinese entrepreneurs, who are changing the “Made in China” to “Made in the US”.