China’s commitment to its strict Zero Covid Policy has thrown both buyers and suppliers one more challenge – in a global market which is already very challenging.
The media narrative is ‘everyone is leaving’.
Industry consensus tells a different story.
Yes, some orders are moving out of China, but then they were long before the pandemic as brands started to implement a ‘China + One’ strategy.
As good as China’s manufacturing capabilities are, its risky to have all of your eggs in one basket – or to be wholly reliant on one market.
Still, leaving China is not easy – especially during challenging times. Having your entire supply chain in one country certainly helps to overcome the logistical issues of having to import materials from one nations to a different nation for CMT.
Likewise, Chinese manufacturers outperform most others when it comes to agility and speed. Also critical in the current situation.
Even with lockdowns, the nation has been able to rebound quickly and has managed to workaround the obstacles that government policy continues to throw at it.
At the same time, the long term trend is towards lessening one’s reliance on China.
This has opened up new opportunities for manufacturers in other nations. And not only Vietnam, Cambodia and Bangladesh. Other opportunities are coming into force, having gained momentum during the past two years. MORE
