China has lost control of global manufacturing after decades of geopolitics built on economic dependence.
As a result, Apple has moved to accelerate plans and move some of its manufacturing out of China as its business is impacted by strict COVID-19 policies, according to a Wall Street Journal report later this week.
A new small share of the company’s new iPhones has already been manufactured in India, where that share has the potential to grow to 25% of all iPhones by 2025.
Other affected products. Tech products aren’t the only ones to have been hit in China, as the Asian giant has also lost ground in global exports of furniture, footwear and accessories since 2016, according to recent MDS Trasmodal transportation economy data, CNBC reported.
- Trade between the US and the European Union, on the other hand, has grown markedly, with analysts viewing Mexico and Vietnam as countries that could benefit from diversifying supply chains.
- The founder of the company in charge of analyzing assembly lines for electronics companies Instrumental, Anna-Katrina Shedletsky, assures that “everyone is thinking about moving, even if they are not taking action yet.”
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- The ant-colored things. Aside from the Chinese government’s unpredictable stance on the COVID-19 pandemic, business leaders and analysts also predict that future investments in the country will be at risk due to geopolitical tensions and domestic demographic shifts.
- Labor has become more expensive as China’s population has stopped growing, according to Elisabeth Braw, a senior fellow at the American Enterprise Institute.
- Beijing’s aggressive moves toward the West and its relationship with Russia have “left leaders nervous that they’re on the wrong side of the global conflict,” he says.
