China is producing higher value goods — even as factories are shifting away from the mainland

"We are actually seeing this movement from manufacturing in China to other locations, but also China then investing in technology," said Patrick Winter, Asia Pacific managing partner at Ernst and Young.

"We are seeing a lot of manufacturing now moving into other locations — toys and cameras are going to Mexico; personal computers, we're seeing those go offshore from mainland into Taiwan. Other manufacturing automotive manufacturing down into to Thailand, Vietnam, and India and so, we're seeing manufacturing move out of China," he said.

Even though some of these factory activities are moving out of the mainland, China is moving up the value chain through its huge investments in technology, artificial intelligence, robotics and blockchain — in turn developing and producing higher valued goods, Winter told CNBC'sThere are "a lot of investment into technology which would actually move China to a different spot within the supply chain," he added.

Even before the U.S. and China battled over trade for over a year, overhead costs of operating in China were rising due to increasing cost of wages. Additional American tariffs imposed on Chinese products only made it more expensive to operate. The situation has exacerbated as large-scale lockdowns and movement restrictions from the coronavirus outbreak disrupt normal supply lines and further complicate logistics.

No to China.

Let’s start moving those factories to Taiwan. Sanction China

I will never buy, made in China. We know they can produce pandemics like nobody else can. Sanction China

Hmm, does CNBC stand for ChiNa Business Channel?

Low price products manufacturers will be moved to lower labor force countries like Vietnam, Thailand and other southeast Asian countries. And China will upgrade their industrial system like some kind of economic natural evolution.

Stuff China

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Source: Reuters - 🏆 2. / 97 Read more »