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The trend of global manufacturing: flowing back to China

By  : John Zhao Updated  :   2017-11-01 10:58:11



The Chinese mainland has started to undertake the global manufacturing transfer after 2000. With the well-known BAT, and the growth of the hardware manufacturing companies such as Haier, Lenovo, HUAWEI, ZTE, China manufacturing industry has formed a huge system, which is capable to be OEM for overseas brands, as well as launch its own products. Currently, the profitability of China's manufacturing industry is still relatively low, but the advantages of the system has been formed.


Recently, the New York Times published the focus of global semiconductor industry continues to transfer to china. The article said that although the United States seems to be competitive in the high-end manufacturing industry, the center continues to transfer to china.


Why is the manufacturing industry returning to China again? The West has been trying to block the Chinese semiconductor industry, and the US government has been trying to prevent the development of related enterprises in china. The integrated circuit industry has already become the core of information technology industry, supporting social development and national security. Depending on the vast investment and complete supply chain in China, Chinese suppliers are usually more reliable and efficient to foreign companies. For example, the perfect logistics and supporting system is incomparable to many countries. What’s more, the broad market prospects and nation-wide innovative vitality elevates the competitiveness of Chinese manufacturing.


Although staying between manufacturing giants such Europe, Japan and America, and labor-intensive countries such as Vietnam and Kampuchea, and Chinese manufacturing industry is still in the process of transformation, yet China manufacturing industry also has its unique advantages, such as e-commerce,  complete supply chain, policy advantage etc..

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