Gravitas Plus: Why China is still the 'World's Factory'

In 2021, a host of companies said they will stop manufacturing in China. A year on, those brands are still outsourcing from China. Which brands are these? Why is it so tough for them to let go of China? Molly Gambhir explains on Gravitas Plus.

#china #gravitasplus #wion

About Channel:

WION The World is One News, examines global issues with in-depth analysis. We provide much more than the news of the day. Our aim to empower people to explore their world. With our Global headquarters in New Delhi, we bring you news on the hour, by the hour. We deliver information that is not biased. We are journalists who are neutral to the core and non-partisan when it comes to the politics of the world. People are tired of biased reportage and we stand for a globalised united world. So for us the World is truly One.

Please keep discussions on this channel clean and respectful and refrain from using racist or sexist slurs as well as personal insults.

Connect with us on our social media handles:

Follow us on Google News for latest updates

[mystrio]

As an Indian who is working in Shanghai for the past 3 years .. let me tell you that this news piece is very shallow .. chinese labor is much more expensive than India, the enforcement of labor rules, preventing child labor and forced labor is much much more stricter than India, you can get away a lot easier doing these things in India than in china. The labor laws are very much in favor of laborers than in India.

The 3 real reason which our biased media is missing is that they have
1). world class if not the best infrastructure in the world, Just a visit to china's industrial parks and you will see the massive difference between that and the indian special economic zones. Their industrial parks are super clean, amazingly organized, green.. and you will not even realize you are in an industrial zone.

2) In technological skill and automation the chinese are world class. In terms of quality they are amazing.
The general stereotype of chinese quality is totally wrong .. they can make things in all quality based on the cost you pay.. we typically import the lowest cost items from china for cost and then complain about quality, the very same product at a higher price you will get in world class quality from china.

The 3rd reason is the overall environment of world class engineers, expertise is various fields like tool making, chemicals, rapid prototyping ..in short everything required for product development is available in china at a world leading level.

India needs to develop in all these areas.
After 75 years of independence, sadly we can't even lay proper roads, and give proper drainage.. let alone roads we can't even lay manholes that are in line with roads. Sadly that is the level of our civil engineers/goverment who can't even ensure the quality of the laying manholes which do not protrude from roads and these become death traps for vehicles.

[jasonmonge]

China is also the major consumer of those brands!! So China has the factories and the consumers.. leaving China means losing their buggest customer as well!! You get it now???

[nirmalkumar]

It's no longer cheap labour that drives companies to china. As Tim Cook himself said it's the quality of labour and efficiency of manufacturing. Companies didnot say they will leave China completely, they will only create alternate supply chains but China still will be major country to manufacture

[michaelstevens]

Nice video. But let me talk about something major, I see both young and old making mistakes they shouldn't be making, I think everyone, both young and old, should have an investment plan that increases their financial return by three to six figures, the investment can be your retirement plan or your investment plan, whichever you want, but what matters most is that you have a profitable investment

[david-bdtd]

FYI those leaving China were merely production lines and only account for 20%, the core business are still in China ...
Main reasons China has best infrastructures, complete supply chain, huge market with strong purchasing power, second largest economy and largest trading partner to 160 countries ....

[danip]

Excellent video. A lot of double standards in the world

[apersonfromtheinternet]

Good reporting but honestly, reason number 3 is not very true...well maybe yes a few years ago..entrepreneurs can get away with child labor and environmental restrictions etc..but the govn had strictly clamp down on such practices... I used have a factory there and many of my friends still do...the govn is very very stict now.

[davidnewbury]

The volatility in the market is alarming. How can i diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation? I mean I've heard of people making up to $300k weeks during this crash and I'd like to know how.

[esthermoses]

You hit the nail when you said it's because if what china offers profits, ,a wealthy middle class population and a new consumer population as Chinese rise out of poverty, meaning profits for multi national companies and they risk bring penalize by china if they leave

[Cuthburt_Throatwasp]

I can still remember the joy of Indians when this channel told them factories are relocating to India from China 2 years ago hahaha

[samueliluyemi]

You've just convinced me to invest in china. These figures are damn good.

[ishadowmarshall]

Efficiency is a word that economist and businessmen admire.

[eriol_h]

That was some terrific reporting by Molly. Well done!👍👌

[Yan-Yuan]

Total highway (4 lanes and above) lengths as of 2021:

China🇨🇳 = 188, 000 km
India🇮🇳 = 1, 600 km

[finz_law]

India is a place where union baji starts even before factory starts running.

[tresphorempundu]

There are even more reasons beyond the one's mentioned that makes China an idea location for business. And child labour is no longer a common scene in China anymore, they have been tangible improvements in various sectors of the economy. This is evident from all people living in China and foreign governments and the officials have spoken about this.

[TM-smqy]

Chinese citizens have been lifted financially into the middle class. Therefore China's base of consumers is huge due to lifting their people out of poverty.

[zizimai]

I'm sure India is very disappointed. Those foreign western companies promise of coming to India few years ago but did not materialised. Instead Chinese companies are the ones who came into India.

[anfio]

I have been living China for long time ;The most important thing for investment is predictable cost, China's security, laws, infrastructure, stable water, electricity, transportation, and low corruption enable all investments to predict the cost, which is the most important

[jolegancee.]

You guys did a great piece on their sources of raw materials from Africa a while back. They say one thing in the media and forums like the WEF then go East, South and do exactly what they "strongly" disputed. Some companies will never see my $$$ if I can avoid it