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Manufacturing is mostly not shifting away from China because there are layers and layers of know-how, specializations, access to sub-contractors. Nobody is goi
by sonnyblarney 8y ago
Manufacturing is mostly not shifting away from China because there are layers and layers of know-how, specializations, access to sub-contractors.
Nobody is going to duplicate Shenzen in the forseeable future.
Yes - for raw, basic labour - Nike might move to Vietnam - but manufacturing is not just 'labour' - there's a host of professional aspects on top of it.
Tiny example: I'm working with a manufacturer right now making a plastic part that cannot be injection moulded. The factory has specialists in this, and CAD folks who can very intelligently work the part into a solution. These are serious skills.
I don't quite believe that under Xi things have changed that-that much for regular business people. Yes, the state apparatus has changed, but it's not hugely material for the merchants.
- iliketosleep 8y agoWhat you say about places like Shenzhen is true - there's some highly specialist manufacturing that cannot be easily replicated elsewhere. It seems we have contrasting experiences with regard to business conditions. The local business owners that I know have suffered as a direct result of Xi's policies which favor large enterprises. Most of them have cut staff. Then in the large enterprises, there's an increasing amount of government interference which impacts business.