It’s pretty much cosmetic. Companies are doing final packaging in neighbouring countries, with the key components still being sourced from China. Ironically, this means the push for decoupling is making China’s neighbours more economically dependent on China, not less.
One step at a time. When manufacturing moved out of the USA. The assembly/most labor intensive went first then later the supply chain. The same thing is happening with China. We started to built our first finished goods factory in Vietnam in 2007, we developed some local component suppliers a few years after that. Every couple of years another component is either moved to Vietnam or sourced from somewhere other than China. We now have three finished goods factories in Vietnam, six component suppliers in Vietnam, and another six outside of China. We are gradually untangling ourselves from China.
It’s pretty much cosmetic. Companies are doing final packaging in neighbouring countries, with the key components still being sourced from China. Ironically, this means the push for decoupling is making China’s neighbours more economically dependent on China, not less.
One step at a time. When manufacturing moved out of the USA. The assembly/most labor intensive went first then later the supply chain. The same thing is happening with China. We started to built our first finished goods factory in Vietnam in 2007, we developed some local component suppliers a few years after that. Every couple of years another component is either moved to Vietnam or sourced from somewhere other than China. We now have three finished goods factories in Vietnam, six component suppliers in Vietnam, and another six outside of China. We are gradually untangling ourselves from China.