Two-fifths of the world's semiconductors are installed in China. Almost all of the printed circuit boards and more than half of the word's mobile phones are made in China. To support those datas. The SEG Electronic Market and similar places in the Huaqiangbei district of Shenzhen are perfect symbol of how dominant China has become in the electronics industry.
Originally, China gained the dominance based on cheap labour. In recent years, labour costs have gone up- by more than 60% between 2011 and 2016. But China now has much else to offer. Compare to Vietanam and India, it's really convenient to fly to Shenzhen. Besides, there is an ecosystem of firms has sprung up to provide everything relate to electronics industry, except those high-end chips such as processors and memory chips.
This dominance has shot up the political agenda. Donald Trump, the president of the United States, has raised tariffs on many Chinese products. Samsung, the world's biggest smartphone-maker, has shifted most of its production to Vietnam. Mitsubish, a Japanese company, has started moving production back home. Those kind of firms have moved some activity to reduce their reliance on one country.
In theory, the trickle could become a flood if the trade war heats up.Those recent events have given American firms an incentive to reduce their reliance on Chinese manufacturing. But in practice the outflow is likely to be limited. As China's advantages look too great, comparing to Vienam's bad infrastructure and India's bureaucracy.
网友评论