China is losing its world supply leadership! Where are the companies going? Here are the new supplier 5 countries

According to the news of Business Insider; After this 40-year era, disintegration started after the trade war launched by former US President Donald Trump against China. Although this fragmentation started with Trump, the real blow to China was after the coronavirus epidemic.

Some investors have started to move parts of their production facilities outside of China.

“Geopolitical tensions may not have caused this level of reorganization of supply chains on their own, but COVID-19 has certainly provided extra vision, extra support, extra fuel to the fire,” said Ashutosh Sharma, Market Research Specialist, who made assessments on the subject.

Multinationals have sought to further minimize their business risks in the wake of US-China trade tensions and the coronavirus lockdown in China.


Due to the increasing risks in China, companies had to shift their production centers to different countries.

1) India

The first and most important country to take over the supply chain positioning from China is India.

India, with its young population, is trying to displace China in high-end production for iPhone maker Apple and chip makers.

With its vast territory and young population, India is seen by manufacturers as a logical alternative to China as the ‘factory of the world’.

2) Vietnam

Vietnam has been undergoing rapid economic reform since 1986 with significant returns.

According to the country’s Ministry of Planning and Investment, Vietnam attracted more than $31.15 billion in foreign direct investment in 2021, an increase of more than 9% from the previous year. About 60% of the investments came from the manufacturing and processing sector.

Apple has moved some of its iPhone production to Vietnam and plans to move some of its MacBook production to the Southeast Asian country. Other companies that have shifted some of their production lines from China to Vietnam are Nike, Adidas and Samsung.

3) Thailand

Thailand, the second largest economy in Southeast Asia, is making progress up the value chain in the manufacturing sector.

The country has become a manufacturing hub for car parts, vehicles and electronics, with multinational companies like Sony and Sharp opening stores there. Not only international companies, but even Chinese companies have moved some of their supply chains to Thailand.

4) Bangladesh

Bangladesh is already benefiting from the shift of its supply chain away from China. Now he wants to get a bigger piece of the pie.

Bangladesh’s rise was primarily due to rising labor costs in China before Trump’s presidency.

The country is also known as the world’s second largest apparel exporter after China. Bangladesh is currently working beyond the apparel sector to attract investment into other sectors, including pharmaceuticals and agricultural processing.

5) Malaysia

For years, Malaysia has been watching for opportunities arising from companies moving away from China.

The Investment Development Authority of Malaysia reported that there were at least 32 projects relocated from China to Malaysia in July 2020.

Malaysia’s foreign direct investment inflows reached a five-year high of $48.1 billion in 2021, with electronics and vehicle manufacturing the main contributor, according to official government information.