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Restructuring of China's Manufacturing Industry
Time:2025-07-07

www.feizichem.com    Shijiazhuang FeiZi Chemical Technology Co., Ltd

Recently, the SAIC Volkswagen Nanjing plant, which had been operational for 17 years, officially shut down, leaving over 3,000 employees facing transfers or layoffs. This marks the second large-scale factory closure by SAIC Volkswagen within two years, following the shutdown of its Anting Plant in Shanghai in 2024. This wave of closures is not limited to the automotive industry—multinational companies across various sectors have been scaling back their operations in China in recent years, forming a cross-sector withdrawal trend.

Behind this phenomenon lies a quiet transformation in China's manufacturing industry:

Low-End Capacity Relocation Coexists with High-End Industry Clustering
For China today, cheap labor is no longer an advantage, with Vietnam's hourly wages being just half of China's. Meanwhile, foreign investment continues to flow into high-tech sectors such as semiconductors, new energy, and biopharmaceuticals.

Role Shift
The transition from the "World Factory" to an "Innovation Hub" reflects multinational companies' strategic shift from "Made in China" to "Developed in China."

Conclusion: Upgrade Opportunities Amid Transition Pains
The current movement of foreign capital is essentially the result of the interplay between the restructuring of global industrial division and China's pursuit of high-quality economic development. As experts point out, "Companies withdrawing are mostly concentrated in areas where they have lost competitive advantages, while high-end projects continue to attract increased investment." China is undergoing a leap from a "low-cost haven" to an "innovation highland," with the core challenge lying in how to transform transitional pains into sustainable competitiveness through institutional innovation and technological breakthroughs.

We must keep pace with the trends of the times, focusing on product innovation and upgrading, optimizing product quality, and enhancing competitive strength.

Our products include

3,5-Dinitrotrifluorotoluene CAS: 401-99-0

Aminomethanesulfonic acid CAS: 13881-91-9

3-Hydroxypropanesulfonic acid   CAS: 15909-83-8

 

 

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