China Manufacturing Crises
π’ China's Manufacturing Landscape: From Dominance to Disruption ππ China, once hailed as the "world factory," contributed 30% to global processes in 2018 with a staggering $4 trillion (30% of GDP). How did it achieve this status? π π Low Labor Cost: Competitive wages and rental inflation of 7% YOY made China an attractive hub for manufacturers. π Tax & Duties: Favorable tax policies and a robust business ecosystem fueled growth. πΉ Currency Practices: China's competitive currency practices gave it a market advantage. ⚖️ Regulatory Compliance: However, lax regulations posed challenges for quality control. π₯ Factors Leading to Crisis π₯ 1️⃣ US-China Trade War: The war led to increased tariffs on high-tech goods, causing semiconductor crises and impacting 20% of US imports. 2️⃣ Pandemic Wake-up Call: Companies realized overreliance on China, leading to a historic low in exports in 2019. π Why Companies are Leaving π 1️⃣ Soaring Inflation: Rising rental and...