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China’s Ministry of Commerce Admitted Manufacturers Are Moving Out of China

Well-known Chinese news site Sohu recently reported that multiple senior leadership team members of the Chinese Ministry of Commerce jointly held a press conference on July 2. The Ministry admitted that industrial players and even supply chains are moving out of China. However, they suggested that it is normal for companies to move in and out as their globalization priorities change. It is understandable that places with lower costs may attract some companies to move out of China. One cannot simply conclude that this is a direct result of the China-US trade friction, since there are many causes. In the press conference, the Ministry also mentioned that its focal points for work this year are to “stabilize foreign trade” and to “stabilize foreign investments.” The Ministry is currently “cleaning up” existing regulations in preparation for the new Foreign Investment Law to take effect next January.

Source: Sohu, July 2, 2019