The Big Call

Manufacturers rush inland

  • Published 29 Jul 2010

The migration of industrial capacity from the east and south coasts to hinterland cities is speeding up, spurring a host of fundamental changes in its wake.

It is well-known that China's manufacturing capacity has been migrating from coastal to inland provinces over the last few years. Now - according to a China Confidential survey in six provinces - this process is shifting into high gear as the costs of labour, land, utilities and other key inputs in the coastal "workshops of the world" climb significantly. The accelerating shift of manufacturing hubs to towns and cities across inland China has several profound implications for the wider economy.

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