China is no longer just the world’s factory. It’s the HQ

AI Summary

China’s role in the global electronics industry is shifting as companies spread manufacturing processes across other locations. The article argues that this does not amount to a decline in Chinese manufacturing, since China retains deep supplier networks, skilled labor, infrastructure, logistics and engineering capabilities.

The global electronics industry is entering a structural transition. For over two decades, China served as the dominant manufacturing centre, with an unmatched concentration of suppliers, skilled labour, infrastructure, logistics and engineering capabilities. That concentration is being diluted. But interpreting this as the decline of Chinese manufacturing would be a mistake. China is exporting parts of its manufacturing process while retaining the industrial capabilities that matter...