The ongoing US and China trade war is forcing manufacturers to look for alternative production hubs. Though Vietnam and India appear as obvious choices, however, both the countries are no match compared to the facilities available in China.
Vietnam is one-tenth of China’s population is already facing manpower shortage, causing production delays at the facilities already live in the country.
The supply chain is another factor that works in favour of China. Further, setting up factories with US-focused safety certifications and capital-intensive machinery is a costly affair.
India has the manpower, but it lacks the required skillsets and the government policies are also not conducive.