In 2023, it’s very easy to answer that question. Yes. China remains successfully positioned with a lucrative value proposition for shippers. Materials and manufacture for an unbeatable price, supported by world-leading infrastructure.
It’s a value proposition UK and US consumers are addicted to. The UK received £63.6bn in goods from China in 2021, for America the figure was $505.3bn. In both cases, the PRC is their biggest import partner, with trade volumes outstripping local competitors such as Germany and Mexico respectively.
“Roughly 75% of the quotes we provide to customers from the Asia region are from China, so that just highlights the pulling power that it still has.” Justin Hope, Associate Director – imports, WTA.
Yet, whether to relocate some or all their businesses imports away from China is a conversation which can be heard in boardrooms across the UK and USA. In some cases, firms are already beginning to move manufacture.
Tech giant Apple, arguably the most high-profile example, is planning to produce some of their iPhone 14s in India. A move which raised plenty of eyebrows on both sides of the Atlantic. It’s part of a wider aim of completing 25% of their manufacture in India. A sizeable increase on the 7-8% which happens there currently, mostly of older models. But why?
“Covid-19 really brought to light our over-dependence on one or two manufacturing areas” James Micklethwaite, Freight Account Manager, WTA.
The 2020 pandemic, geopolitical tensions, rising costs, and other emerging economies are just some of the driving factors behind this conversation. Possibly for the first time, supply chain diversification is a strategic priority for western businesses.
The China Plus One approach has risen from a flaky logistics industry buzz-phrase to a genuine long-term goal for many businesses. Some looking to relocate their supply chain entirely.
It’s against this private sector backdrop, that WTA Group has produced a new whitepaper and podcast, exploring other options in the Asia region and beyond, that businesses could explore for procurement. They also take a detailed look at the pros and cons of importing from China in 2023 and provide insight choosing a new market for your imports.
Curious about China and want to find out new opportunities?
Join us in our next China event sponsored by WTA, taking place on the 2nd July! More information about the event can be found here.