The Global Manufacturing Industry Is Moving Out of China

Chinese workers produce various components at the Mansfield Manufacturing plant in Dongguan, southern China's Guangdong province on October 20, 2008. At least 2.7 million factory workers in southern China could lose their jobs as the global economic crisis hits demand for electronics, toys and clothes, as the region has seen massive export-driven expansion in recent years by supplying the world with cheap consumer goods, but rising production costs and falling US and European demand have marked a swift end to the boom. AFP PHOTO Photo credit should read STR/AFP/Getty Images

Globalization has transformed China into the “world’s factory.” Eighteen years ago, developed and newly industrialized countries moved their labor-intensive and low-tech industries into the country. However, the onset of the Sino-U.S. trade war prompted a growing number of foreign companies to leave China and move to Southeast Asia, giving Australia new opportunities. China, the “world’s factory,” is losing its competitive edge.

Foreign businesses have started to leave China years ago because of soaring costs, but the Sino-U.S. trade war just greatly accelerated this process.