Business leaves China: companies are looking for new ways of production

Companies are increasingly shifting production from China to other countries in an effort to reduce risks and diversify suppliers, despite high costs. According to the head of the Semiconductor Industry Association of Malaysia, Wong Sue Hai, the business is moving away from the «just-in-time» strategy, replacing it with a more sustainable approach, which can be called «just in case.»

Malaysia is becoming a popular destination for relocating production facilities. According to a survey by the American Chamber of Commerce in China, about a third of companies have already started or are considering such a step. It also encourages Chinese enterprises to actively develop overseas operations, including opening factories abroad.

Previously, the «China plus One» concept allowed companies to diversify suppliers by moving assembly outside of China. However, there is now a growing demand for components manufactured outside the country, such as sensors and printed circuit boards. This requires significant investments in new production sites, which makes excluding China from supply chains a longer-term strategy.