16/12/2025
"First, China is no longer the optimal manufacturing base. 10 years ago, China’s labor, land, and supply-chain advantages were unrivaled. Today, Vietnamese workers earn less than RMB 2,000 per month, Thailand and Mexico enjoy tariff advantages for exports to the U.S., while factory wages in China’s Yangtze River Delta exceed RMB 6,000 — squeezing margins in low-profit industries like consumer electronics.
Second, product life cycles are ending. Panasonic’s global TV market share has fallen below 2 percent , with traditional home-appliance businesses running losses for years. Rather than maintain high-cost production in China, firms are cutting non-core businesses to focus on batteries, hydrogen energy, and other emerging sectors.
Third, global supply chains are being rebuilt. Tech giants like Apple and Samsung have already shifted assembly to India and Vietnam, while even leading Chinese brands such as Xiaomi and TCL are pursuing automation and overseas factories. Foreign manufacturers that fail to adapt risk being pushed out entirely."
From Sony and Canon to Toyota and Samsung, multinational firms are pulling production out of China, signaling a broader restructuring of global supply chains while Beijing grapples with its own economic woes