Why Companies Are Moving Out From China ? | Explained

Are Companies shifting from China ? Yes, Companies are moving out of China. China, a country which is also known as a manufacturing hub. Chinese manufacturing industry started to grow in late 1970s. As the Western world was moving towards service economy and the western countries were facing problem with continous increase in labour cost. Also standard of living was elevated and all of this leads to high manufacturing cost. Due to this the investors were attracted towards china. As china had a huge manpower and also very low labour cost. The Chinese government also started to bulid special economic zones, where massive factories and ports can be bulid. This boosted the manufacturing and attracted many fortune 500 companies to china during the 80s. As in china the same products were manufactured with very low cost. In 2010 1/3rd of all products on planet is manufactured in china. And that made China the 2nd largest economy after US. But as of now many companies are moving out from Chi