The Chinese Communist Party understands the disastrous impact Western companies would have on the Chinese economy, should the demand for Chinese manufactured products be withdrawn.
China is no longer roaring as it was in the 1970s with nearly 20% annual GDP growth. In fact, ignoring a pandemic-induced blip in 2021, China is growing at rates not dissimilar to developed Western economies.
The Chinese Communist Party has maintained the support of the Chinese people by providing continual improvement to their standard of living. Should this trend be reversed, it could have severe political repercussions. In short, China has a lot more to lose than the West and the Chinese Communist Party will likely avoid a situation where geopolitical risk has a severe impact on China’s manufacturing base.
On the flip side, there has never been a better time to source products from China. Over the past 20 years, the Chinese skill base has improved significantly. Many factories now have highly skilled and experienced engineering teams, quality is much improved, and free capacity is up. China has great capability, a diverse supply base, excellent quality, is cost-effective, and has plenty of capacity.
Read more from the World Economic Forum.
Now is the time to take full advantage of a China keen to do business.
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