China is no longer just the world’s factory. It’s the HQ

Por Djoomart Otorbaev — South China Morning Post – News feed

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Opinion Djoomart Otorbaev China is no longer just the world’s factory. It’s the HQ

Manufacturing capacity is moving overseas but China, as a global hub for innovation and development, remains the ‘industrial brain’

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Djoomart Otorbaev Djoomart Otorbaev is a former prime minister of the Kyrgyz Republic (2014-2015). Published: 8:30pm, 28 Sep 2026

The global electronics industry is entering a structural transition. For over two decades, China served as the dominant manufacturing centre, with an unmatched concentration of suppliers, skilled labour, infrastructure, logistics and engineering capabilities. That concentration is being diluted. But interpreting this as the decline of Chinese manufacturing would be a mistake.

China is exporting parts of its manufacturing process while retaining the industrial capabilities that matter most.

According to the Boston Consulting Group (BCG), since 2017, the share of electronics manufacturers from China – Taiwan, Hong Kong and the mainland – with overseas production has risen to 56 per cent from 12 per cent. BCG based its analysis on 942 publicly traded companies with annual revenues above US$500 million, including 314 headquartered in China. This transformation is remarkable.

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Fonte: South China Morning Post – News feed