4 ms·

> Weird logic. I don't follow. There's no indication that the manufacturing capacity could be taken over by a south-eastern asian country. If they could do so,

• cyberlurker 4y ago
  It’s been happening. One example is Vietnam.
• ericmay 4y ago
  Because it takes time to do so? I don’t think companies are going to fully leave the Chinese market or anything. That wouldn’t make any sense. But divest their exposure and locate factories all around the world because of the risk due to concentration? Yea definitely.
• lvnfg 4y ago
  Changes take time, and there are massive opportunity costs to moving your supply chain base elsewhere. If other countries can do manufacturing equally well (same quality, cost, legal environment, etc), but you already have your base fully established in China serving your entire global operations, moving to the another country gives you no benefits, and you face the risk of severe disruptions to your operations if anything goes wrong. So the world will only move out of China if other countries like India can offer significantly lower cost at same quality, which they haven't been able to do, or if there are significant geopolitical risks to staying, which seems likelier by the day.