, Columnist
We’ve Already Picked Decoupling’s Low-Hanging Fruit
Fragmentation is real. But there’s a long way to go before supply chains are free from an addiction to China.
China remains the single largest manufacturing economy and exporter in the world.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Declines in foreign direct investment in China bolster the thesis that global companies are turning away from the world’s most-important production hub, continuing the trend of decoupling that has policymakers and corporate leaders looking for alternative manufacturing bases. The truth of the nation’s deteriorating importance isn’t so simple.
Inbound FDI dropped 28.2% in the year through May, the 12th straight month of retraction. Other data released this month add weight to the “whither China” argument.