Overseas production grows among China-linked electronics makers
The South China Morning Post reports that BCG found the share of electronics manufacturers from mainland China, Hong Kong and Taiwan with overseas production rose from 12% in 2017 to 56%. The figure measures the share of manufacturers with overseas production, not how much production capacity moved abroad; the article describes China as continuing to serve as an innovation and development hub.
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The South China Morning Post reports a rise in the share of electronics manufacturers from mainland China, Hong Kong and Taiwan that have overseas production: 56%, up from 12% in 2017, according to the Boston Consulting Group (BCG). The measure records whether manufacturers have production overseas; it does not quantify how much capacity has shifted out of China.
BCG’s analysis covered 942 publicly traded companies with annual revenue above US$500 million, including 314 headquartered in China. Against that evidence of more firms producing overseas, the South China Morning Post characterizes China as continuing to serve as a global hub for innovation and development, or an “industrial brain.” The reported percentage alone does not establish the scale of any decline in manufacturing capacity within China.
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