In a bid to offset the impact of President Trump's tariffs on China, Apple is planning to temporarily source more iPhones from India. Apple has a strategy for avoiding President Trump's steep tariffs on China. Samsung Electronics has ended mobile telephone production in China. It has shut its last phone factory in the world's biggest smartphone market. This is the scene of a furniture factory closure in Guanghou. Pieces of fabric that were still being sewn. It has badly hurt China's export manufacturing industry. China used to be the promised land for the $380 billion goods business. Now it is the land of losses. China's reign is coming to an end. For decades, China has been the manufacturing king of the world, being responsible for nearly 30% of all global manufacturing output at its peak, making everything from electronics to textiles to heavy machinery. But now that once unshakable empire is collapsing. The manufacturing sector that powered China's meteoric rise is now facing severe issues that threaten its place in the world. In today's video, we'll dive deep into the untold story of China's manufacturing crisis and how this earth shaking shift could change the way the world does business forever. The main reason why China is undergoing a manufacturing crisis can be stated simply in one sentence. Businesses don't want to produce in China anymore. The big question is why? Let's start there and jump into discussing why China isn't as favorable a place to manufacture goods as it used to be. What possible reasons could be so bad that even companies like Nike and Apple are running away from China in search of newer markets? The first factor is labor. One of the big reasons why China managed to rise to the throne of manufacturing was that it boasted a lot of cheap labor. Back in the day, it had a huge and cheap workforce that made producing in China an accountant's dream. Everyone simply wanted to set up factories in China. But decades later, this isn't the case anymore. Now, China's rising labor costs are a key factor in this crisis and are contributing to making China less desirable for manufacturing. The question is, how did this happen? Well, over the past two decades, China has experienced a rapid economic growth, lifting hundreds of millions of people out of poverty and creating a booming middle class. While this is a remarkable achievement, it has also led to a significant increase in wages. In 2005, the average monthly wage for a factory worker in China was around $150. Fast forward to 2025, just 20 years later, and that figure has soared to over $1,200. This dramatic rise has eroded one of China's biggest competitive advantages, its lowcost labor. To put this into perspective, consider Vietnam, where the average monthly wage for a factory worker is approximately $300, or India, where it's even lower at $250. Because of this, and many other factors we'll be discussing soon, companies like Apple have begun to shift production to countries like India. A simple showcase of that is how 20% of all iPhones, a move worth $22 billion, are now made in India as compared to just 1% around 20 years ago. These countries are now emerging as attractive alternatives for many other businesses looking to cut costs. And we'll talk more about that soon. But it's not just about numbers. The younger generation in China is increasingly turning away from factory jobs, seeking opportunities in tech services, and other industries that offer better pay and working conditions. The nation's youth absolutely despise traditional factory jobs. And don't just take my word for it. Listen to this. mismatch between the white color jobs the young graduates would like to do and the need for blue collar workers. This shift has created a labor shortage in some regions, further driving up costs for manufacturers. After all, the higher the demand for workers, the higher the wages. The situation has gotten so bad that President Xi and his administration have been actively pushing for more kids to study manufacturing so that they can fill factory jobs and reclaim the throne. And sadly, that's not really working out for them despite the unemployment figures being so high. Another way the CCP has tried to control the youth is by taking away their voice. If you criticize the government too much, well, you can get blacklisted in the CCP social credit system. That means no home, no job, no money. You basically become a homeless man waiting for death if you get blacklisted. The CCP is also spending a tremendous amount of money to make sure that news of this policy doesn't get out. That's why any videos on YouTube criticizing the Chinese government are quickly downvoted and disliked. So, if you guys can help us out against this by just hitting that like and subscribe button down below, it makes a huge difference. We really appreciate you. Now, outside of China's labor issues, the US China trade war that has been dragging on for years is a huge problem. As tensions just keep intensifying, it has made China a less desirable place to manufacture goods. What started back in 2018 as a series of economic disagreements has turned into a full-blown conflict with no sign of resolution. Over time, both sides have raised the stakes. Now, in 2025, the United States is slapping tariffs as high as 245% on imports from China, which is a dramatic increase compared to earlier years. China, of course, has retaliated with its own measures, imposing tariffs of their own that go up to 125% on American goods. There's also been a severe ban on key products and restrictions on select companies on both sides. That back and forth between these two superpowers has created one of the most deeply entrenched trade conflicts in recent history. These tariffs aren't just numbers. They cause real disruptions to global trade and supply chains. Industries that depend heavily on manufacturing components in China are struggling to deal with skyrocketing costs. Take the electronic sector for example. Many of the essential parts used in smartphones, laptops, and other devices are made in Chinese factories. With these increased tariffs and in some cases bands, production costs have shot up significantly. Inevitably, the higher cost trickles down to the consumers who now face steeper prices for their gadgets. All that makes China a less desirable and more expensive place to set up your factory. But the challenges don't stop there. What's really bad for China is that all this is happening just a few years after the CO 19 pandemic exposed critical vulnerabilities in global supply chains that Beijing has still yet to fully recover from. CO 19 quite literally reshaped the way the world does business. When it hit at its peak, the pandemic shut down the global supply chain, taking all of China's business with it. Question this, what happens to a country that is dependent on manufacturing the world's goods when, well, the world closes up shop? Doesn't take a genius to figure that out. absolute disaster. China, which was arguably hit the hardest by the pandemic, faced a severe closing of factories. Together with the CCP's zerocoid policy, a policy that was so bent on eradicating CO that it heavily punished the citizens, China just went downhill. By the time factories started trying to open again, the world had somewhat moved on. And now China was left to figure out the absolute disaster of a mess they were in. In addition to that, the pandemic showed many multinational companies just how much they depended on Chinese manufacturing. This came as a shock as many realized that everything from raw materials to contract manufacturing to production facilities was entirely based on Chinese supply chains. In a bid to rectify that so that unlike co times they would never be caught out in the rain, several multinational companies started looking for alternative locations. You would not be wrong to say that even though it's been a few years since this pandemic, China never really fully recovered. The world changed and with it some of China's businesses. All these reasons that we just discussed have heavily contributed to worsening China's manufacturing crisis. Unfortunately, in a world as interwoven as ours, such problems don't just affect China. They have a global ripple effect. So, to truly grasp the magnitude of this manufacturing crisis, we need to examine its far-reaching effects on three key areas: global businesses, China's own economy, and you, the consumer. Starting with global businesses. Companies everywhere have long relied on China's massive production capabilities, efficient infrastructure, and competitive costs to keep supply chains running smoothly. But now, well, things have changed. The manufacturing crisis has forced companies to scramble for alternatives, and the ripple effects are being felt across industries worldwide. Even the ongoing tariffs on China have slowed GDP growth. The International Monetary Fund even estimates that they've shaved off about.5 percentage points annually from global growth. That shows just how heavily everyone is feeling the impact of China's pain. One of the biggest shifts the world has also seen has been the relocation of manufacturing operations. China's rising labor costs, ongoing trade tensions, and unpredictable supply chain disruptions have pushed businesses to look for other options. We'll talk more about the destination countries in just a few minutes. However, the reality is that moving manufacturing out of China isn't as simple as just like flipping a switch. Setting up production in new countries takes serious investment in infrastructure, worker training, and supply chain development. Building a factory in Vietnam, for example, may take years before it reaches the same level of efficiency that China has perfected over decades. For small and medium-sized businesses, this transition can be especially difficult as they don't have the same financial resources as larger companies to weather the disruptions. That's why many companies are not fully abandoning China, but instead adopting a China plus one strategy. This means they keep some manufacturing in China while spreading production to other countries as a backup. It's a way to reduce risks while still benefiting from China's well-established ecosystem of suppliers, skilled workers, and logistical expertise. China's system is incredibly advanced, and replacing it entirely would require massive effort that some businesses simply can't afford right now. So, for now, products just become more expensive as the relocation slowly takes place. Crazy, right? Another major trend unfolding is the rise of nearshoring and reshoring. Just so we're all on the same page, nearshoring involves relocating a company's production or operations to a country that's geographically closer to its primary market, while reshoring means bringing production back to the company's home country. After the pandemic exposed vulnerabilities in global supply chains, many companies and countries are bringing manufacturing closer to home. In the United States, reshoring initiatives have gained traction with the government offering incentives to boost domestic production. Europe is also making moves to reduce dependence on Chinese imports by strengthening its own manufacturing base. This shift isn't just about costs. It's about building more resilient supply chains that can withstand unexpected disruptions. China's manufacturing crisis is forcing industries to rethink everything. What used to be a stable system is now shifting rapidly. And businesses must decide how to move forward. And though the world is feeling it, no one is being hit quite as hard as China itself. The ripple effects of the manufacturing crisis are being felt acutely within China itself. Manufacturing accounts for about 26% of China's GDP today, which is lower than it used to be when the sector was at its peak. Back in the early 2010s, manufacturing was closer to 30% of the country's GDP. To put this into perspective, China's GDP in 2025 is estimated to be around 127 trillion yuan, which is approximately 18 trillion. This means that the 4% reduction translates to roughly 5 trillion yuan or about $700 billion that manufacturing no longer contributes to the GDP compared to its peak years. This difference is about the same as the GDP of Bangladesh and Vietnam combined. To make things worse, China's growth rate has been affected because of this manufacturing crisis. Between 2010 and 2012, when China's manufacturing industry was booming, China's GDP growth rate averaged around 9 to 10% annually. Now, as China collapses, its economy is projected to grow at a rate of 4% in 2025. See how significant this crisis is for China. Another blow to China can be seen through the visible decline in its export orders. In 2024, China's exports of manufactured goods fell by 8%, marking the steepest decline in over a decade. As you might imagine, this has forced some factories to shut down. In February of 2025, China's manufacturing purchasing managers index, or PMI, stood at 50.2. 2 barely above the threshold that separates expansion from contraction. While large enterprises are managing to stay afloat, small and medium-sized businesses are bearing the brunt of this crisis. This decline in exports has naturally had a cascading effect on China's economy. Factories are closing, workers are losing their jobs, and local economies are struggling to cope. In some regions, unemployment rates have risen to their highest levels in years, creating social and economic challenges for the government. For instance, in GuangDong Province, a manufacturing hub, the unemployment rate among factory workers reached 6.5% in early 2025, up from 4.2% just in the previous year. In response to these challenges, the Chinese government is implementing measures to support the manufacturing sector. This includes offering subsidies to struggling businesses, investing in advanced manufacturing technologies, and promoting domestic consumption to offset the declines in exports. For example, the government has launched initiatives to encourage the production of high-tech goods such as semiconductors and electric vehicles, which are seen as key growth areas for the future. However, these measures may not be enough to fully address the underlying issues. The manufacturing crisis is not just a short-term problem. It represents a fundamental shift in the global economy. As businesses diversify their supply chains and reduce their reliance on China, the country's manufacturing sector will need to adapt to a new reality. This could involve a greater focus on innovation, sustainability, and value added production to remain competitive in the global market. And now, let's move on to things that directly affect you. You see, China's manufacturing crisis isn't just causing trouble for businesses. It's also hitting consumers hard. With rising production costs and ongoing supply chain disruptions, prices for everyday goods are climbing. Electronics, clothing, household items, I mean, you name it. It's more expensive now than it was just a couple of years ago. The cost of smartphones alone has jumped by an average of 12% while the price of apparel has risen by about 8%. These increases aren't random. They are the result of several major factors that ultimately end with a cost being pushed to you. But it's not just the price tags that are changing. Availability is becoming a real issue, too. As the Chinese manufacturing crisis deepens, factories struggling to meet demand means fewer products on shelves and longer wait times. If you're looking to buy an electric vehicle, you might just be waiting months to get your hands on one because of the shortages in rare earth metals and other critical parts. And it's not just cars, either. Retailers everywhere are having trouble keeping inventory stocked, which is frustrating for shoppers who are used to grabbing what they need without delay. This crisis isn't only affecting physical goods. It's having an impact on experiences and services as well. One example is the tourism industry. Many of the items that support travel, things like souvenirs, transportation equipment, and even supplies for hotels, come from Chinese manufacturers. With production slowing down, businesses in the travel sector are feeling the pinch. It's not just airlines and hotels. Even amusement parks and cruise lines are seeing disruptions because of delayed shipments of essential supplies. You see, everything is caught up in China's crisis. So, how are people reacting? Well, as prices climb and availability becomes less reliable, people are starting to rethink how they shop. More consumers are turning to secondhand goods or choosing to support local businesses instead of relying on imports. Some are even opting to repair older electronics and appliances rather than buying brand new replacements. It's a shift in behavior that could have a long-term effect on the economy, forcing companies to adjust to new spending habits and possibly changing how global trade operates in the future. So, as you can see, as China's manufacturing crisis deepens, so too is the list of problems for China, global companies, and consumers. However, the consequences of China's manufacturing struggles go far beyond factories and exports. They extend to geopolitics, power, and wealth. What I'm saying simply is that China risks losing substantial power and influence as part of this manufacturing crisis. In order to fully understand this, let's dive into how China has used manufacturing to rule the world. From the onset of China's manufacturing boom, its economic strength has allowed it to expand its influence far beyond its own borders. Take Africa for example. China has made itself the go-to development partner for countries across the continent, building strong relationships that have elevated its global status. China's importance to Africa boils down to four main reasons. The first is access to resources. China needs oil and gas to fuel its massive economy. And today, it imports more oil than any other country in the world, even more than the United States. To secure a steady supply, China has invested heavily in African countries like Angola, Sudan, and Nigeria, ensuring those pipelines don't run dry anytime soon. These investments have come with deals that largely benefit them. It also brings value to the host countries, but it's always ensuring that China is offered the first piece of the pie. All this money that has facilitated this investment mostly came from the manufacturing industry. YouTube just dropped a mindbogling announcement. It is paying creators $64 million per day. Why? Well, because YouTube doesn't have enough creators. That is why you see videos on your homepage that have less than a,000 views like this one. Now, of course, that doesn't mean everyone should start a channel. But if you have ever wondered about starting a YouTube channel or a faceless YouTube channel like this one, well, now is a perfect time. YouTube is paying creators millions every day, and it's pushing newer, smaller channels now more than ever. But I'm sure many of you have questions on how to get started and how to grow a channel. We get questions in our email all the time from some of you guys. So, that's why we've decided to put all of our YouTube advice into one training boot camp for the low, low price of completely free. So, if you're someone interested in starting your own YouTube channel, you can sign up for this boot camp by clicking on the link in the description or on the screen. Sign up now because unfortunately, unlike YouTube videos, the boot camp is like a Zoom call, so it's limited to just 100 people. Okay, let's get back to the video. The second reason is Africa's importance as a market for Chinese goods. China's manufacturing has become more expensive in recent years as labor costs have risen. But Africa's growing demand gives China an outlet to keep its exports flowing. The shift is part of a strategy to move away from laborheavy industries and focus on highv value sectors instead. Then there's the political side of things. China values Africa's support on the world stage. And many African governments back Beijing's one China policy in exchange for aid and investment. So just to clarify, the one China policy is the diplomatic acknowledgement of China's position that there's only one Chinese government. Under the policy, the world recognizes and has formal ties with China rather than the island of Taiwan, which China sees as a breakaway province to be reunited with the mainland one day. This kind of support boosts China's international standing, giving it an advantage in global negotiations. And you know what gives China the funds to make such investments and have influence? Manufacturing. Lastly, China plays a stabilizing role in regions where it has economic interests. This isn't entirely out of goodwill. It's about protecting its investments. But at the same time, African governments benefit from the partnership too. Unlike Western countries, which often attach political conditions to the raid, China's approach is strictly about economics. It avoids lecturing African governments on governance and focuses on getting deals done. This makes China an attractive partner, especially in countries that feel alienated by Western policies. Most Western nations like to lecture and micromanage the finances they give, but not China. With Beijing, simply sign on the X and boom, the deal is done. Of course, this model has its critics. Some say it enables corruption and there's no doubt that some of the aid ends up in the wrong pockets. But the fact remains, China's money and resources have transformed many African nations. So, as you can see, manufacturing has given China this kind of global reach. It allows the country to form alliances and build influence in ways that few other nations could match. Major economies like Nigeria, Kenya, and South Africa have borrowed heavily from China, aligning themselves with its global agenda. As of 2025, African countries collectively owe China approximately $150 billion. And this debt has accumulated over decades, primarily through loans provided for infrastructure projects like roads, railways, power plants, and ports. This economic leverage has been a powerful tool for China to advance its own interests while keeping resistance to a minimum. But not everything about this rise to power has been positive. As more countries rely on Chinese manufacturing, China has gained significant influence. And some argue it hasn't always used that influence responsibly. Under President Xi Jinping, China has taken a more assertive and sometimes aggressive stance on the world stage. Its territorial claims over Taiwan and disputes in the South China Sea have raised alarms, especially with its ongoing military modernization. Many worry that China could use its economy and military strength to force control over Taiwan, just as Russia did with Ukraine. China's role in BRICS, the group of Brazil, Russia, India, China, and South Africa, adds another layer to its global influence. As the economic backbone of bricks, China is helping the group challenge the traditional dominance of western-led institutions. Whether the shift will bring stability or upheaval, it remains unclear, but it shows how China is shaping the future of global politics and economics. None of this would have been possible without the manufacturing sector that powered its rise. That said, and as we've been discussing, China's manufacturing industry isn't as dominant as it once was. As the manufacturing industry collapses in a crisis, China risks losing its position in the global hierarchy. All of its influence, friends, and power were bought on the back of manufacturing power and money. Without that, everything falls to the ground like a house of cards. That's why Xi Jinping is very worried and is trying to sort out the mess that Beijing has found itself in. What happens next is critical, not just for China, but for the global economy. Whether China can adapt to these challenges and maintain its superpower status or whether its dominance begins to slip remains to be seen, but one thing is clear, the stakes are incredibly high and the world is watching closely. So, now that we've established that China is losing business, let's look at who is taking this business from them. As Beijing's crisis deepens, countries like Vietnam, India, and Mexico are stepping up in a big way, and they're proving to be better options for manufacturing in many respects. Vietnam, for one, has become a magnet for foreign investment, especially in electronics and apparel manufacturing. As of March 31st, 2025, total registered foreign investment into the country reached 10.98 billion, marking a 34.7% increase compared to the same period in 2024. Vietnam has simply become one of the most attractive options for global manufacturers. And there's no shortage of big names that have already invested heavily in the country. Companies are drawn to Vietnam for its low labor costs, improving infrastructure, and growing reputation as a reliable manufacturing hub. For businesses looking for an alternative to China, right now, Vietnam is checking all the right boxes. Take Lego for instance. The Danish toy company has built a $ 1.3 billion manufacturing facility in Vietnam's Byong Province. It's not just any factory. It's to be their first carbon neutral facility globally, powered entirely by renewable energy by 2026. The factory is creating thousands of jobs and solidifying Vietnam's place as a key player in the manufacturing world. This investment is a clear sign that Vietnam isn't just a short-term solution, but that it's being seen as a major long-term partner in global production. Then you've got the tech giants. Samsung, Intel, and LG have poured significant investments into Vietnam. Samsung, in particular, has made the country one of its major production bases for everything from smartphones to home appliances. Intel has also invested heavily in its chip assembly and testing facility in Vietnam's Ho Chi Min City, while LG has been focused on producing electronics and household products in the nation. These companies have been key in boosting Vietnam's reputation as a reliable hub for technology manufacturing. The apparel industry is another area where Vietnam is thriving. Companies like Nike, Adidas, and H&M have long relied on Vietnam to produce clothing and footwear. With labor costs significantly lower than in China, Vietnam has become a go-to destination for brands looking to maximize efficiency while maintaining quality. And it's not just tech and textiles. Vietnam has even attracted major investment in the furniture sector with companies like IKEA and Ashley Furniture setting up production there to meet growing global demand. High-tech industries are also taking off in Vietnam. Companies like Microsoft and Foxcon are expanding operations in the country with a focus on electronics and semiconductors. These investments highlight Vietnam's effort to move beyond just a lowcost manufacturing base. The country is making a name for itself in industries that require advanced skills and innovation, which is a big part of why it's so appealing to global businesses right now. All of this paints a clear picture of Vietnam as an increasingly important player in global manufacturing. It's not just about being cheaper than China, but it's about being smarter, more flexible, and better equipped for the future. As more companies invest in Vietnam, the country is proving that it has what it takes to rival traditional manufacturing giants and take its place as a leader in the global economy. India has also positioned itself as a rising star in global manufacturing and a growing number of companies are making the move from China to India. India has proven itself to be a strong contender thanks to a combination of a massive workforce, competitive wages and government policies that actively welcome foreign investment. One of the biggest names to shift its focus is Apple. The tech giant is steadily increasing its manufacturing presence in India over the past few years. It started with producing iPhones in Tamil Nadu at a Foxcon plant. But it didn't stop there. Now in 2025, Apple has expanded its production capacity in India to include the latest iPhone models. Foxcon, Apple's key supplier, isn't just growing its existing plants. It's investing billions in a new facility in Knitaka. These moves show Apple's long-term commitment to India as a manufacturing hub. Driven by the country's significantly lower labor costs compared to China and the financial incentives provided by the Indian government. Samsung, a major player in consumer electronics, is another company that is doubling down in India. It operates one of the world's largest mobile phone manufacturing facilities in Noa Ultra Pradesh, producing millions of devices each year for both domestic and international markets. This isn't just an opportunistic move. It's a strategic shift as Samsung looks to tap into India's skilled workforce and expand its footprint in a rapidly growing market. Dell and HP have also shifted parts of their production to India, taking advantage of its lower labor costs and streamlined regulations. These companies are part of a broader trend of tech giants diversifying their supply chains to reduce reliance on China. India's focus on high-tech manufacturing including semiconductors and electric vehicles is helping it carve out a specialized role in the global market with government incentives like the production linked incentive scheme. India is attracting investment in these future focused industries. Even Chinese companies like hire have recognized the opportunities in India. Hire has established production facilities in the country to cater to both domestic and export markets, signaling how India's appeal crosses industries and borders. This trend shows that India isn't just pulling western companies. It's becoming a global manufacturing hub in every sense. What sets India apart isn't just cost advantage, though that's certainly a factor. Labor costs in India remain far lower than in China, making it an attractive option for companies looking to cut expenses without sacrificing quality. But beyond that, India offers something more. Scale and support. Its workforce is enormous and increasingly skilled, and the government's pro business policies like tax breaks, infrastructure investments, and simplified regulations creates an environment where companies can thrive. Outside of Vietnam and India, Mexico is becoming a serious contender in the global manufacturing game. It's drawing companies away from China and establishing itself as a reliable hub for production. There are a few factors that make Mexico an attractive place for manufacturing. Let's get into them. Let's start with location. Mexico's proximity to the United States gives it a logistical edge that China simply can't compete with. Shipping goods from Mexico to the US takes days rather than weeks, which means faster delivery times, lower transportation costs, and more flexibility for businesses. This is especially important for industries like automotive and electronics, where timing is everything. Mexico's logistics infrastructure is already strong and it keeps improving with extensive highways, rail networks, and ports making it even easier for companies to move goods quickly and efficiently. The US is a gigantic market, so naturally proximity to it is a great thing. Labor costs in Mexico are another reason companies are making the switch. Workers in Mexico earn roughly $4.90 per hour compared to $6.50 in China. It may not seem like a huge difference at first, but when you're producing at scale, those savings add up fast. What it means is that manufacturing labor costs are 44% higher in China compared to Mexico. Crazy, right? On top of that, Mexico isn't just a cheaper option. Its workforce is highly skilled and specialized, especially in industries like automotive, aerospace, and medical devices. Mexico has been investing heavily in training and education, ensuring that workers can handle advanced manufacturing processes and deliver highquality results. And one of Mexico's biggest advantages comes from free trade agreements, especially the United States Mexico Canada agreement. Products made in Mexico that meet the agreement's requirements can be exported to the US and Canada without facing heavy tariffs. This is a huge benefit for businesses targeting North American markets, especially when you compare it to the crazy percent tariffs currently imposed on Chinese imports. Mexico's trade relationships make it not just cheaper, but smarter for companies to operate there. Big names in manufacturing have already made their move to Mexico. Tesla has announced plans to build a new factory in Monterey, focusing on electric vehicles. This is a massive step forward, showing that Mexico isn't just a hub for traditional manufacturing, but also for cutting edge industries. Automotive giants like General Motors and Ford have long relied on Mexico for car production. And now they're deepening their investments, especially as demand for electric vehicles continues to grow. These moves show that Mexico has what it takes to handle advanced manufacturing at scale. Electronics is another area where Mexico is thriving. Companies like Flex and Jable have set up major operations in the country, producing consumer electronics, medical devices, and more. They're not just there for the cost savings. They're taking advantage of Mexico's skilled workforce and proximity to key markets. And it's not just about traditional industries. Mexico is making strides in renewable energy and sustainable production, helping businesses reduce their carbon footprints while keeping energy costs down. This adds another layer to its appeal as a modern manufacturing hub. In this new era where China is slipping, more and more businesses are choosing Mexico as their go-to for production, and the country is redefining what it means to be a manufacturing powerhouse. It's not just filling gaps left by China, but it's building a system that offers something entirely new. Mexico's growing influence in the global manufacturing landscape is undeniable. And as companies continue to move there, it's clear that the momentum isn't slowing down anytime soon. Thailand has become one of the biggest surprises in the ongoing shift in global manufacturing, emerging as a winner from China's manufacturing challenges. While it might seem unexpected at first glance, a closer look shows that Thailand's success in attracting production was bound to happen. As Southeast Asia's second largest economy, the country has been steadily climbing the ranks in manufacturing, building strong expertise in car parts, vehicles, and electronics. It's now catching the attention of major players worldwide who are choosing Thailand as their next production base. Some of the world's most recognizable companies have already made the move. Sony, for example, closed its Beijing smartphone plant in 2019 as part of its efforts to cut costs and relocated production to Thailand. Sharp followed suit the same year, shifting parts of its printer production to Thailand to escape the impacts of the US China trade war. These decisions show Thailand's growing competitiveness as a manufacturing hub, offering businesses an ideal combination of lower costs and improved infrastructure. And it's not just global companies making the switch. Even Chinese firms are joining the exodus, moving their operations to Thailand to benefit from its cost-effective production and escape the geopolitical tensions surrounding China. Shanghai's Jeno Solar, a leading solar panel manufacturer, is one example of this trend, establishing production facilities in Thailand to take advantage of these benefits. Foreign direct investment in Thailand has also surged even in challenging times like the CO9 pandemic. Between 2020 and 2021, FDI in Thailand tripled, solidifying its position as a go-to destination for businesses, reshaping their supply chains. This growth in investment is giving Thailand the momentum to expand further. With the country now actively investing in advanced industries like artificial intelligence and semiconductors as global supply chains continue to shift and adapt, Thailand is ready to grab every opportunity to secure its place in the future of manufacturing. Bangladesh is another standout player benefiting from the supply chain changes and its competitive edge keeps growing. While Thailand focuses on high-tech and diversified industries, Bangladesh has found its niche in garment manufacturing and capitalized on it to extraordinary effect. The garment industry is the backbone of the Bangladeshi economy, accounting for around 80% of the country's exports and totaling over 47 billion annually as of 2025. Impressively, Bangladesh is now the world's second largest garment exporter, trailing only China, a feat that speaks volumes considering the difference in size and resources between the two countries. One of Bangladesh's biggest strengths lies in its labor costs, which are much lower than China's. This disparity makes Bangladesh an obvious choice for companies looking to lower production expenses. But it's not just about affordability. The garment sector has allowed Bangladesh to establish itself as a reliable and efficient manufacturing partner. This disparity makes Bangladesh an obvious choice for companies looking to lower production expenses. But it's not just about affordability. The garment sector has allowed Bangladesh to establish itself as a reliable and efficient manufacturing partner. As the country continues to diversify its economy and attract investment in other industries beyond garments, its growth potential is clear. Bangladesh is positioning itself as a rising competitor in global manufacturing and it'll be fascinating to see how much it can expand in the coming years. Both Thailand and Bangladesh are proving that the global manufacturing landscape is shifting with new players challenging traditional giants like China. Thailand is focused on innovation and diversification while Bangladesh is leveraging its cost effectiveness and specialization in garments to rise through the ranks. Together with the ones we named, these countries are reshaping the rules of global production and showing that manufacturing dominance is no longer tied to a single player. As they continue to grow, the ripple effects of their success are being felt worldwide, reminding us that the manufacturing game is evolving in unexpected ways. Outside of the emergence of new markets, technology is another major factor reshaping the future of manufacturing. Automation is changing the game, allowing factories to reduce reliance on human labor while increasing efficiency. Smart factories equipped with IoT devices and data analytics offers real-time insights into production processes, enabling faster problem solving and optimization. Imagine a factory where machines communicate seamlessly, adjusting operations on the fly to maximize output. That's the future businesses are investing in. And it's not just theoretical. It is happening now. What this means is that as countries modernize, the factories that propped up China will continue to evaporate. After all, automated machines and the like equal the playing field, eliminating some of China's advantages. Artificial intelligence is also playing a huge role in this transformation. AI is being used for predictive analytics, helping businesses forecast demand, managing inventory, and streamline operations. For instance, AI can analyze data from sensors in a factory to identify potential issues before they disrupt production. These advancements are making manufacturing faster, smarter, and more reliable. However, when all this is said and done, China, despite its challenges, isn't sitting idle. The Made in China 2025 initiative is a bold attempt to reinvent the country's manufacturing sector by focusing on high-tech industries. From robotics to aerospace to new energy vehicles, China is aiming to lead an advanced manufacturing areas that will define the next era of production. It's an ambitious strategy that reflects China's determination to remain a key player in the global economy even as labor costs rise and geopolitical pressures mount. However, there are environmental challenges to consider. China's rapid industrialization has come at a significant cost to the planet with factories contributing to air and water pollution and high carbon emissions. These environmental concerns are prompting stricter regulations and compliance requirements, adding complexity to an already strained manufacturing sector. Factories now face tougher emission standards, which can increase operational costs and slow production. As the world adapts to these shifts, the implications for global trade are becoming increasingly clear. Businesses are no longer prioritizing cost above all else. Resilience, adaptability, and sustainability are now the driving factors behind supply chain strategies. We're seeing the emergence of a more decentralized and diversified manufacturing network where multiple hubs around the world play significant roles. Countries like Vietnam, India, and Mexico are becoming essential players, each contributing in their own way to the global economy. At the same time, China remains vital in high- techch and value added industries, ensuring that it doesn't fade completely from the manufacturing scene. This manufacturing crisis is more than just a challenge. It's an opportunity. It's a chance for businesses to innovate, governments to collaborate, and the world to build a more balanced and sustainable global economy. As countries rise to meet these challenges, they're not just reshaping manufacturing, they're reshaping the future itself.