Our CEO, Renaud, recently appeared on The Legal Lunch Byte from American law firm and Asian manufacturing law experts Harris Sliwoski LLP (the creators of the China Law Blog).

Here’s the video:

 

Let’s quickly summarize the content…

Made In China 2025

What are the effects of the previous Trump administration’s policies on the Chinese economy, particularly the ‘Made In China 2025‘ plans?

Large Chinese corporations like Huawei, ZTE, BYD (which now holds the mantle of the world’s largest EV maker), and so on, are still thriving despite pressures from the USA and the ‘Trump tariffs’ (which were also expanded by Biden in May 2024). EVs, batteries, robotics, etc, are all growing well, despite the Chinese economy not being at its most dynamic. Basically, the industries targeted back in 2015 by MIC ’25 have remained strong thanks to the promised government support.

 

Foreign Direct Investment

Are more foreign companies investing in China these days, acquiring assets, doing more contract-related work, etc, or is there more talk of moving out of China?

FDI has gone down quite dramatically, manifested in lower investment in manufacturing capacity, with money being spent on sourcing safely (with enforceable contracts etc) instead.

Some American companies are looking for China alternatives, but this is not simple for anything more complex than the most simple products. For example, relatively complex electronic devices almost certainly can’t be made without using some Chinese components, even if they’re assembled elsewhere. SMEs will struggle to find local components and materials in, say, Vietnam…the largest companies may be able to set up local supply chains more easily, though. In Apple’s case, this has started to happen in countries like India, so perhaps in 5-10 years, there will be a mature pool of component suppliers that can rival the supply chain on offer in China.

About Adrian Leighton

Adrian is the Sofeast group's experienced marketer and has worked in manufacturing for around a decade. He has a particular interest in new product development and sharing important manufacturing news from China.If you've read, watched, or listened to some Sofeast content, Adrian has probably had a hand in it!
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