Chinese Companies Are On the Move – Inland and to Southeast Asia

This article was first published in South China Morning Post on January 31, 2024.

China’s manufacturing landscape is undergoing a major transformation, driven by rising wages, more stringent environmental regulations, a wider adoption of digital technology and opportunities in overseas markets.

The transformation was accelerated by the Covid-19 pandemic and heightened geopolitical tensions, particularly the US-China trade and technology conflict.

In response to these challenges, Chinese firms have actively engaged in adjusting and shifting their operations, demonstrating resilience and adaptability in navigating the evolving industrial terrain. In their pursuit of new markets and greater competitiveness, many companies have opted to relocate to overseas destinations or China’s western inland regions.

Inland movement has gained momentum as businesses strategically relocate to regions within China that offer economic advantages and lower operational costs. This strategic shift reflects a proactive approach to counteracting challenges and maintaining competitiveness amid a dynamic global business landscape.
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