China’s manufacturing crown is slipping. Shoe, textile and electronics makers have been shifting capacity to lower cost centres such as Vietnam and Bangladesh for several years.
Foreign direct investment into China’s manufacturing sector posted a rare overall decline last year. Now there are signs that even in car manufacturing — a national strength — competitiveness is diminishing.
Auto manufacturers are increasingly finding Mexico a more attractive location to expand production as Chinaslips back, beset by an average 16.8 per cent rise in automotive salaries between 2009 and 2014.
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