The end of the China cycle

2012

The latest regional manufacturing study by Roland Berger Strategy Consultants analyzes dramatic changes in the socio-political landscape in China. The China "Low Cost" manufacturing cycle is coming to an end.

After 3 decades of rapid growth, China has become an economic superpower and is poised to be the second largest economy with regard to nominal GDP by 2025. But a study conducted by Roland Berger Strategy Consultants shows it is time for foreign firms to reevaluate their manufacturing footprint strategy.

"Right now, the value proposition for many firms in China is disappearing as rising costs erode China's competitive cost advantage relative to other countries." says Tom Wendt, Principle at Roland Berger Strategy Consultants in North America and author of the study. "In addition to rising costs, shifting government policy and social issues are further compounding the complexity of doing business in China."