China’s grip as being the world’s manufacturer may be starting to slip.
BEIJING — A record share of U.S. companies in China are accelerating their plans to relocate manufacturing or sourcing, according to a business survey released Thursday.
About 30% of the respondents considered or started such diversification in 2024, surpassing the prior high of 24% in 2022, according to annual surveys from the American Chamber of Commerce in China.
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While India and Southeast Asian countries remained the most popular destination for relocating production, the survey showed 18% of the respondents considered relocating to the U.S. in 2024, up from 16% the prior year.
The majority of U.S. companies did not plan to diversify. Just over two-thirds, or 67%, of respondents said they were not considering relocating manufacturing, a 10 percentage point drop from 2023, the survey showed.
The latest AmCham China survey covered 368 members from Oct. 21 to Nov. 15. Trump was re-elected U.S. president on Nov. 5.
PIPL and MLPS are no joke in the “motherland”. MLPS is assigned by the China government and the process to adjust that requires a LOT of greasing hands. Get assigned one at 3 or higher and your company will be giving up any and all encryption keys for network traffic and data. A large manufacturer of adhesives and tapes is going through this. They do not play fair.