China’s Supply Chain Dominance: A Comprehensive Analysis of Global Trade Trends

China’s role in global supply chains across various sectors has been a subject of significant attention. Over the past decade, China has seen a growth in its export and manufacturing share in sectors such as apparel, consumer electronics, solar photovoltaics (PV), and autos, at the expense of other producers. The country’s industrial policies and domestic imbalances have contributed to this growth, leading to concerns among trading partners about supply chain security.

Despite the pushback from trading partners and the imposition of trade barriers, China’s manufacturing sector continues to display remarkable efficiency and resilience. The structure of global trade is evolving as countries strive to protect their industrial bases, create or retain manufacturing jobs, and enhance technological capabilities. This evolution is shaping global production and trade patterns, with significant implications for the future of global supply chains.

In the apparel sector, China’s share of global production and exports has been declining due to rising labor costs. However, the country still dominates the production and export of apparel and textile inputs. Relocation of production outside China has been observed, particularly in sectors like apparel and electronics, benefiting emerging markets in Asia. Vietnam has emerged as a top destination for manufacturing relocation, offering an alternative to China.

In the consumer electronics sector, China remains a major global producer and exporter of electronics products, with a focus on laptops, tablets, and mobile phones. However, countries like Vietnam and India have seen a surge in manufacturing activity, driven by incentives to attract foreign direct investment. The growth of final assembly hubs in these countries has contributed to diversification in the consumer electronics supply chain.

China’s dominance in the solar PV sector