· Over the past three decades, China has emerged as the world’s’ manufacturing powerhouse, supported by low labour costs, a sophisticated multi-level supplier system, advanced supporting infrastructure and a reputation for high efficiency.
· However, China’s rising cost of labour and ageing population, along with recent trade and geopolitical tension with the U.S., have led to renewed debate over the future of manufacturing in China. Signs are already emerging of the diversification and regionalisation of manufacturing supply chains, a trend likely to be accelerated by the COVID-19 pandemic.
· Despite these challenges, China's manufacturing industry retains a sizeable competitive advantage over other markets. In addition, the central government is now prioritising the development of new growth drivers, which will see China’s manufacturing industry undergo a transformation as it moves up the value chain to focus on advanced production.
· This ViewPoint by CBRE explains how China’s new era of manufacturing will have a profound impact on the country’s existing manufacturing clusters; the criteria used to select sites for manufacturing facilities; and the market for industrial land and property.