(27 September 2024 – China) Almost 50 percent of corporates across Asia Pacific, the UK and the US have already moved their operations out of China or plan to do so within the next 12 months, GTR reports.
Isaac Hanson reports for GTR on East & Partners Outlook 2024 report that reveals Chinese companies are leading the supply chain ‘reshoring’ trend. At least half of those interviewed have shifted some or all of their operations out of the country, and a further 24 percent are considering doing so in the next year.
The research was based on the East on Demand platform and direct interviews with 556 corporate treasurers and CFOs across Australia, China, Hong Kong, Singapore, the UK and the US.
The top reasons cited for this shift are lower operational costs elsewhere, geopolitical tensions and the significant depreciation of the Chinese Renminbi.
“Cheaper solutions are the primary driver for corporations based in Hong Kong and Singapore, while geopolitical tensions are driving the move for the non-Asia markets included in the research – Australia, the UK and the US” commented East & Partners Global Head of Markets Analysis, Martin Smith.
“The prevailing high level of uncertainty [around tariffs following the 2024 US election] is having a detrimental impact on corporates’ ability to strategically plan for the medium to longer term”.