Investors Beware: China's factories are moving. But not to Mexico or Vietnam.

China fully intends to maintain dominance in manufacturing, supply chains, and logistics in virtually every manufactured product, and to do so on Chinese soil. True, they are opening a handful of factories in Vietnam and Mexico, but almost solely to take advantage of the tariff rules for entering the US market.

Their primary focus is the development of the vast, interior provinces of China. They will bring another nearly 300 million people from the Chinese countryside to newly-built urban areas within next 20 years. Labor-intensive and low-value-added industries have been moved out of coastal China, to locations inland.

The export sector in these newly opened areas is already booming. The 15 provinces of central China already produce more exports than Mexico, India, and Vietnam, and their growth is accelerating.

Several countries hope to challenge China for market share in these industries, which include textiles, furniture manufacturing, plastics, and countless others. Sober analysis of China's best-in-world logistics and monopolies in raw materials sourcing and processing leads experts to have severe doubts that other developing countries will compete effectively.

Investors hoping to profit from the nearshoring or friendshoring trends should be advised that it is mostly talk; few companies have moved supply chains out of China to take elsewhere. There isn't anywhere else to go.

[Aceks]

China has a very developed infrastructure when it comes to electrical power, railroads, canals, high speed rail, roads, highways, airports, and ports. The reason why Rome was able to conquer the world was because of their very good infrastructure. China will be able to be predominate in manufacturing because of its very good infrastructure.

[frankm]

You are within very few Americans who report China with honesty. Great works!

[robertlackey]

I have a business in Guatemala, when I first came here 26 years ago the CIA was murdering postal workers, now mail delivery is handled by the CIA and organized crime. Currently it takes a additional 4-5 months and 160% to get packages here, it make business very close to unprofitable and VERY slow and always quasi legal, I make Agricultural electronics and it would take 50 years to get the documents to be 100% legal so you always live with a little fear and that is very corrosive over time. I wonder how many other small nations are being economically crippled by the CIA.

[allisonfarah]

Great podcast. I enjoy the news about China. Just as Russia fascinates me, so does China. I love it that China is forever developing, growing and improving lives inside and outside of the country.

[hkfoo]

Yes, because of the infrastructures, China has made entire China from the most remote to the most urban areas into one big factory areas where everyone can now be productive without having to travel far away to work.

Now everyone can move from one area to another in minutes or hours !! Goods can be ordered from anywhere and delivered.

That would make China the real world's centre of the world .

[seymorefact]

🇺🇸 I'm investing in China since 1995. Expanding my business in China! Logistics, infrastructure, Engineering, Tech., resources! Not even the USA can beat China🇨🇳. I have a very comfortable life in America because of China. USA, is in decline and getting even worse.

[DanBurgaud]

The Supply Chain game: Rails, Roads, Ports, Parts, Workers.
Countries that want to be the manufacturing hub has to get all these up first.

[DIRKDIGG]

There is a saying
"The next China is China:"

[josephdewuhan]

I highly value the info in your videos. Thumbs up for each one of them.

[Cali-pk]

Just subscribed. Found you to be honest and informative. Keep it coming and best of luck to you!

[hpw-wsbj]

Thanks to the belt and road initiative China has created new markets outside of the g7. What leadership and foresight!

[michaeltan]

China has plenty of potential. That’s why China produces hundreds of billionaires every few years.

[ilyanaantonyuk]

discovered this channel few days ago, cant stop watching. i think i need to watch it all, but i am already waiting for a new video every day. Thank you for you work and effort. A lot of people appreciate it and i hope the number would grow

[PS-]

This will grow the middle class within China and will spur internal consumption to keep the Chinese economy growing.

[shiulai]

Thanks for another fact based piece.
Much appreciated.

[lordlee]

I found it funny that US MSM keeps on undoing the work you do, keeping the truths from its people. Also, just want to point out that American communities outside urban centers are dirt poor with very few opportunities, pretty depressing if you ask me every time I pass them by

[chingo]

How would you do business with India whose policy is the same as U.S., flipping or tearing at its own will.

[polysporin]

there was a lot of criticism of China HSR. overbuilt and losing money. they are so wrong. it is this powerful transport system that allows China to expand its factories to the less developed areas further inland. China has thought ahead, and continues to defy and exceed conventional western wisdom. Chinas rail has an average 80 km/h
compared to India at 20 km/h. China is able to transport goods and materials 4 times as fast as India. it is called manufacturing turnover. how fast or cycles, you can convert materials to money. China transport infrastructure can do that 4 times as much as India.

[TheSiapajadeh]

This is surely an eye opening piece. Great job

[qingshanyipian]

You have by far the best well thought out contents of anywhere. Very informative and helpful as well to understand the real issues regarding China. Thank you.