Turmoil within China

There is of course the increased Covid numbers there will the CCP has ease restrictions which has affected factories there.

But the real problem is that manufacturing is moving away from China. No longer will China be the center of the world manufacturing & supply chain source.

Apple has already moved some iPhone manufacturing to Vietnam and is planning to move some of its MacBook production to the Southeast Asian nation.

Other companies that have shifted some of their production lines out of China to Vietnam are Nike, Adidas, and Samsung.

As Southeast Asia’s second-largest economy, Thailand has been moving up the value chain in manufacturing and is a production hub for car parts, vehicles, and electronics, with multinationals such as Sony and Sharpsetting up shop there.

Also developed nation states are bringing back the manufacturing of strategic items to their countries too.


I think Zeihan is correct about China being on a downward path now. But he might be incorrect about the end of globalization. Things are moving out of China, but not back to first world countries.

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Some stuff is. Many news stories regarding chip plants being built in USA.
So is medical manufacturing:

I suppose anything that has strategic value will return to the US as the chain supply collapse show the weakness of having important strategic items made outside the country.

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Got to disagree. Most things will come back to the US/Mexico depending on how value added it is.