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The process of "de-sinicization" of the supply chain

The process of supply chain diversification, or "de-Chinafication," is already underway, as Apple is shifting its production base from China to India. This move will undoubtedly impact Chinese employment, economy, and trade. It is advisable for companies that have set up manufacturing facilities in China to explore alternatives such as India or other locations. Governments must also assist businesses in establishing production infrastructure in those regions.

Currently, China is facing challenges with the post-pandemic recovery, a real estate bubble, economic instability, and the potential loss of foreign exchange generated by Taiwanese businessmen in the past. If all supply chains are shifted to other countries, it will have significant implications for Chinese employment, economy, trade, and other uncertain factors.

Comply with Government Policy - Made in India

If Apple gradually moves its supply chain to India, it is projected that by 2025, approximately 26% of iPhones produced by Apple will be manufactured in India. If India can learn and adapt quickly, the impact on China will be even greater.

However, India still faces challenges in terms of education standards, caste system, taxation policies, infrastructure development, and the aggregation of businesses with sufficient capacity, all of which are not yet on par with China. In the short term, Southeast Asia could be considered for investment, while India or the South Asian region may be suitable for medium to long-term investment. India's political situation is less susceptible to threats from China, which is why other countries often mention that India is about to awaken.