Irreplaceable, short-term

There has been much talk about shifting manufacturing from China because of rising labor cost etc. The process, however, will be gradual and not likely impacts China greatly at least short-term due to :-

1. Well-established supply chain not available elsewhere for now

2. Fully-developed logistic infrastructure

3. Pool of skilled and trained labor

4. Rising productivity and manufacturing efficiency

5. Stabilization of RMB, China’s currency with its recent appreciation losing momentum

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