China’s Manufacturing Exodus Accelerating Amid Deteriorating Economy, Say Insiders

As global buyers demand diversification, Chinese firms are moving production to Vietnam, Indonesia, and Central Asia.

Employees work on a towel production line at a factory in Huaian, Jiangsu Province, China, on April 2, 2025. -/AFP via Getty Images

As China’s economy continues to deteriorate and U.S.–China trade tensions deepen, manufacturers are accelerating an exodus from China to Southeast Asia and Central Asia, reshaping supply chains that once anchored global production, according to multiple industry insiders.

Labor-intensive and mid- to low-tech manufacturing chains are moving to Southeast Asia, while some energy-intensive industries are extending into Central Asia. Some Chinese business owners have obtained foreign passports and now manage their Chinese factories remotely from abroad.