We’ve already picked decoupling’s low-hanging fruit
Fragmentation is real. But there’s a long way to go before supply chains are free from an addiction to China.
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China remains the single largest manufacturing economy and exporter in the world.
PHOTO: AFP
Tim Culpan
Declines in foreign direct investment (FDI) in China bolster the thesis that global companies are turning away from the world’s most important production hub, continuing the trend of decoupling that has policymakers and corporate leaders looking for alternative manufacturing bases. The truth of the nation’s deteriorating importance isn’t so simple.
Inbound FDI dropped 28.2 per cent in the first five months of 2024, with May the 12th straight month of retraction. Other data released in June adds weight to the “whither China” argument.
