China's factories are closing down and moving, to other regions in China. Not to Vietnam or Mexico.

China's vast interior provinces are benefiting from supply chain moves from coastal China, as global manufacturers move inland. Vietnam and Mexico are seeing manufacturing and export booms as some final assembly plants are built there to avoid US tariffs. However, the manufacturing and export sectors of China's inland provinces are far outpacing those of Vietnam, Mexico, and even India.

Chinese GDP growth figures at the provincial level show that the economies of less-developed areas will double in under 10 years, closing the gap with the giant coastal economies of the Pearl River Delta and the Shanghai megalopolis.

Resources and links:

Wall Street Journal, China’s Factory Floor Is Moving—But Not to India or Mexico

China’s provincial GDP growth in 2023

Nepal Foreign Affairs, China's GDP growth map by province, 1H 2023

Inside China Business, China's factories are moving to inland provinces

FT, For business, breaking up with China is hard to do

Barron's Breaking Up With China Isn’t as Easy as It Looks

Despite the ‘De-risking’ Buzz, Some Multinationals Are Doubling Down in China

Bloomberg, China’s Population Shrinks for First Time Since 1960s in Seismic Shift

Closing scene, Mount Emei, Sichuan Province

[horridohobbies]

*<SLAP MY FOREHEAD>*

It never occurred to me that China could move its manufacturing inland where labor is cheap. This is better than moving to Vietnam, Mexico, and India. China can still make use of its great supply chains because of its great logistics (rail, road).

And the inlanders will be economically elevated, thus narrowing the inequality between urban and rural areas.

It's so bloody obvious and brilliant.

[MegaPapa]

"Common prosperity" is the theme. Or "don't leave your countrymen behind" is another way to examining China.

[johnlaw]

You really have to admire XiPing for carrying out the plan;"born a long time ago", to raise ALL of China from poverty(going to take some time). This is what the 1% of America is afraid of, they want to be the only rich ones. (Just my very basic opinion)

[baljiangusa]

When a country has a good infrastructure as China does, population size of China, industrial capability of China, and hard working traditions of China, there is no reason to move the supply chain anywhere.

[wtf_usa]

This is one of the best channels out there for unbiased, accurate information on Ch.ina. Thank you sir!!

[slc]

I predicted this ! that the CCP is encouraging factories to move inland to use the cheaper labour and still raise the living standards of those areas 👍🏼 smart move by the government .

[tenchichrono]

I wonder if this is also a part of the poverty alleviation program? To bring industries and etc to areas that are more inland. I believe one of the biggest triggers is the road / rail infrastructure. Different cities are only hours away from each other. Makes logistics feasible.

[dennyli]

Growth within China will be prolonged....

[angryranger]

Always ready for your videos everyday! Informative and eye-opening!

[gunsumwong]

Don't have figures myself verify the moving of factories but as an ethnic Chinese overseas I have a great admiration of the Chinese leadership doing "together for a shared future" with the poor and rich provinces. What China has been doing is to put more investment to develop the previously poor provinces who were at the bottom of the GDP league table. China leaders is doing what the US would never do and that is to make the poor folks less poor quickly using the national resources. The effort is highly coordinated. Roads, bridges, HSR, power, energy, transmission and tourism are introduced methodically. It is truly a socialism with the Chinese characteristics. The richer provinces are still getting richer but the poor provinces are being make less poor a lot quicker. The ethnic minorities are no longer minor financially.
No matter how much the west smears China the Chinese government is among the most caring and humanistic. Historically the ethnic minorities dominate the poor provinces. China runs a national policy to favour them at the expense of the Han majority. While the Han could have only one child the same rule never applies to the ethnic minorities who can also go to university with a lower academic scores than the national average. They can get high paid government jobs easier too. The leadership effort is to preserve the ethnic minorities, encourage their growths so that they are not squeezed out or marginalized by the Han majority. This policy can run successfully because the Han majority knows this is for the good of the country and their sacrifice and support are pivotal. Remember most of the people in the leadership are Han.
The renewable energy incidentally helps the poor provinces sparsely populated with ethnic minorities in infertile land barely habitable. The waste land is ideal to install solar panels and wind turbines as this would not compromise the arable land but makes useless windy desert and dry arid outcrop productive. With such huge installations there comes regular income, job opportunities and secure future for Inner Mongolia, Xinjiang, Tibet, Gansu, Ningxi, Sichuan and Yunnan. The GDP of these previously poor provinces are the current financial stars in China now.

[oscartur]

I always think that some western companies that are leaving China is because in the past they were dominant in the markets and now they have been strongly desplaced by very competitive chinese companies

[MsBay]

Another excellent report. Your Script is amazing.

[bertanelson]

The same situation everywhere, young people, especially, leave small towns & rural areas for the cities. Chinese leaders are the only ones I know of who are working to counter this trend by moving basic factories to these outlying areas. Special attention is also given to the unique characteristics of areas. Example of creating a huge Azalea "forest" that attracts thousands of tourists during spring blooming season. Tending to these plants develops a year- round income to the residents, many of whom have lived an agrarian lifestyle. Keeping the youth home, creating income for the many elders who would much rather stay where they are is a compassionate, humanitarian AND cost-effective way of managing a population.

[JBear-inql]

Mind boggling how such a large country and economy can run so relatively smoothly and coordinated. Perhaps it’s time for us in the west to accept that we have things that we can learn from their system. After all, they learn from our system and improved it. Our government and media needs to stop telling us it ain’t so!

[willismartin]

They are spreading the wealth throughout the country. Excellent 😊

[MetaView]

*The message in this video is more emphatic than ever:* The intended audience is not you or me. This message is for the oblivious Western leaders and condescending garden bureaucrats. This is a wake-up call. This is a blaring siren warning of impending hazards. But as usual, good words often fall on deaf ears.

[hammylauw]

The rule of logic, The Chinese Communist Party, is a real PEOPLE party, taking care of its citizen 😊

[zhaoliu]

As a Chinese live in US I love your videos. Went back and watched All the videos.
Great work thank you

[stanbimi]

Thank you. You confirmed what I've been thinking for a while when reading western media reports about the so-called "China +1" de-risking moves. Rational Chinese officials and company executives would not move jobs and factories to other countries without also giving the poorer provinces a chance to catch up. It means training programs and jobs for the less developed inland provinces. It's the right thing to do.

[vsuhvrv]

Kevin has a good soul.. you can hear the goodness in his being