Beijing decided to close the factories and impose a lockdown to stop the COVID-19 virus from spreading. It affected the global supply chains and compelled Western companies to rethink their supply chains. Economists also predicted that globalization will never return to its pre-pandemic form. Here arises a question- how will this pandemic impact Chinese manufacturing and the future of the China purchasing agent.

Over the years, the world has witnessed global dependence on China when it comes to supplying materials for manufacturing. Affordability is one of the main reasons behind China’s popularity. The pandemic has no doubt brought some changes, but China’s dominance is still prevalent. This blog will discuss both the negative and positive sides and the future of sourcing in China.

Listed below are some factors that could help China retain the global businesses:

• Other famous manufacturing hubs do not have a wide collection of parts and materials required for production like China
• Factories in developing countries may offer cheaper materials but most of them do not have access to advanced technologies and the workforce that can meet the demands of modern-day manufacturing industries.
• Some countries are abandoned for their political unrest and disorganized economic systems
• Infrastructure, including rail networks and port facilities, in other hubs are not as strong as in China
• China supplies most raw materials for product manufacturing; so even if the organizations move their product assembly department elsewhere, the supply chain will remain in China.

Many large organizations have started implementing a China+1 strategy. This strategy encourages the businesses to maintain their precision manufacturing in China while running other departments in other countries.

Some Potential Alternatives to China

Apart from China, there are other Asian countries, known as potential resource hubs. Though their manufacturing costs are expensive than China, they have importance for providing materials at lower costs than the Western countries. Let’s explore the pros and cons of investing in these countries.


The Pros

Being the 2nd large population in the world, India can provide unlimited human resources and a king-size market for manufactured products

The Cons

• Poor infrastructure is compared to China
• Strictly regulated economy
• Lack of labor’s knowledge in cutting-edge manufacturing technologies


The Pros

• Geographical location is close to China and offers all raw materials available in China
• Possesses robust manufacturing infrastructure
• Does not have any political unrest

The Cons

• Limited workforce
• Does not have ample ports for handling exports


The Pros

• Unlimited workforce and wide market potential
• Political and economic unrest

The Cons

• Poor infrastructure
• Unstable government
• Religious unrest

China Still Comes First

The economists have already pointed out the decline triggered by the pandemic in the world economy. The economic slumps and financial collapses have become visible. In some countries, several ‘boycott China’ movements are running against the country’s perceived failure in handling the Coronavirus pandemic. All these concerns have complicated the relationship between global manufacturing organizations and the China purchasing agent.

Any company will need enough time to wrap up its operations in China and move to any other country. It will be a costly affair as well. Moreover, other countries cannot beat China in souring materials. That is why China is still the best bet for souring.

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