The Future of China as a Manufacturing Base

The Chinese economy now returns to a ‘new normal’ of six percent growth per year. At the same time, the traditional position as low cost manufacturing base is eroding and other Asian location alternatives are now on the radar of C-level executives of international corporations. What is the future of China for production expansions by American, European and Asian companies?

In an article in the well-known Expansion Magazine, René Buck, CEO of BCI Global, discusses the pros and cons of four China/Asia manufacturing strategies:

• reducing the labor component in the product costs by improving and innovating production technologies/processes
• (re)locating (more) production capacity in the more cost effective central and western part of China
• choosing non-Chinese lower cost countries in South East Asia, such as Malaysia, India, Thailand, Indonesia or Vietnam
• reshoring to U.S./Mexico or Europe

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Source: Expansion Magazine, March 2018