China: Does Manufacturing There Still Make Sense for Non-Chinese Companies?
In today’s uncertain geopolitical and economic climate, the question of where to manufacture has never been more important. As companies face shifting global dynamics—from supply chain disruptions to rising regulatory complexity—understanding the role China plays in the future of production is critical.
At the recent EGN Singapore (Executives’ Global Network) Executive Leadership Group meeting, leaders explored the topic:
“China: Does Manufacturing There Still Make Sense for Non-Chinese Companies?”
The session provided an in-depth look at the evolving risks and rewards of maintaining or shifting production in China. From cost considerations to political friction, intellectual property protection, and the emergence of alternative hubs like Vietnam, India, and Mexico—leaders examined what it means to build a resilient manufacturing strategy in a rapidly changing world.
Key discussion points included:
🔹 Industry-Specific Realities:
Certain sectors, such as MedTech, still find significant value in maintaining operations in China due to market access and established infrastructure. For other industries, like textiles, the shift away from China is already well underway and unlikely to reverse.
🔹 Aligning Strategy with Purpose:
The decision to manufacture in China should tie directly to a company’s overall strategy. Whether leveraging China’s complex ecosystem or targeting its vast domestic market, clarity on goals and expectations is essential. This includes recalibrating margins and setting realistic benchmarks.
The session emphasized that there is no one-size-fits-all answer—but rather, a call for informed, context-driven decision-making.
Final takeaway:
Staying competitive in a multipolar world requires strategic agility, scenario planning, and peer collaboration. By sharing insights and challenges, leaders can better navigate complex global decisions and shape more resilient, forward-thinking operations.
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