China Manufacturing Crises
📢 China's Manufacturing Landscape: From Dominance to Disruption 🌍🏭 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? 🔍 🏭 Low Labor Cost: Competitive wages and rental inflation of 7% YOY made China an attractive hub for manufacturers. 📋 Tax & Duties: Favorable tax policies and a robust business ecosystem fueled growth. 💹 Currency Practices: China's competitive currency practices gave it a market advantage. ⚖️ Regulatory Compliance: However, lax regulations posed challenges for quality control. 🔥 Factors Leading to Crisis 🔥 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. 👋 Why Companies are Leaving 👋 1️⃣ Soaring Inflation: Rising rental and...