Apple is quietly reducing Chinese manufacturing. What does this mean?

 The four words "Made in China" have been experienced too much in the eyes of the Chinese people. At first, these words were not so popular in the eyes of the public. At first, these four words were a symbol of "counterfeit goods". Not only at home, but also abroad, there was a wave of boycotting Chinese manufacturing, but the ubiquitous Chinese manufacturing failed them. Since then, everyone has clearly realized the status and true appearance of China's manufacturing industry. Despite all the discussions, we have indeed gone out of Asia and into the world. Since then, made in China has become a less objectionable term for us. The rapid expansion of manufacturing has even made us a little proud. China has truly become the world's factory. The transformation of Made in China exists all over the world, and now Made in China represents a rare opportunity and powerful strength.

​China is now the world's factory, but it will not always be the world's factory. Now we can even see a clue that China's status in the manufacturing industry is slowly declining, and many manufacturers' orders are gradually decreasing, and there is The phenomenon of handover. Take the Apple we are most familiar with. In the past, Apple almost handed over all its business to China, and almost all Apple products were processed, assembled and packaged in China. But in recent years, the order volume has decreased from 75% to 70%. Where did that 5% go? It was transferred to Southeast Asian countries such as India and Vietnam. Has China "fallen out of favor"? Why does Apple transfer orders to other countries?

​China's status as the world's factory is indeed unshakable. This status can be both good and bad. Manufacturers in other countries give China a thumbs up and are also afraid of China, afraid that China will annex them. Suppliers are also afraid of China. They are afraid that manufacturing will not work without China, so they will no longer hand over all their orders to China as before. They will give other countries opportunities. Especially in the current escalation of Sino-US relations, large American companies must gradually reduce their dependence on China. A strong Chinese manufacturing industry is the first goal of their plan. This is not a good thing for China, and China is not for the world. What's the obsession with the title of factory, but the thing behind this title.

​Behind the world's factories are tens of millions of jobs, the employment rate that cannot be reduced by the Chinese labor force. Once the orders of foreign companies are transformed, it will bring a large number of unemployed people to China. This is why other Southeast Asian countries want to increase the development of manufacturing. In fact, it’s normal for China’s title of world factory to be gradually replaced, because the advantage of China’s cheap labor has disappeared, and the price of labor is different from a decade ago. In Southeast Asian countries that have not yet opened up markets, their labor The price is lower than that in China, which will naturally attract more companies to invest and build factories. What Chinese factories need to consider is how to reduce this gap and find other ways to slow down the process of being gradually replaced.