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Article: Weekend Long Read: Are Chinese Industries at Risk of Hollowing Out?

  • Author: Luo Zhiheng
  • Content Summary:
    • The relocation of certain Chinese industries overseas since 2010 has decreased the country’s global share of certain exports, with sectors such as resource- and labor-intensive industries moving to countries like Vietnam and Australia.
    • A new wave of overseas expansion has raised concerns about the impact on unemployment in some sectors.
    • The author believes there is no need to be overly worried about the short-term risks of industrial relocation due to China’s ongoing industrial upgrades and transformation.
    • The medium- to long-term risks include industrial hollowing-out, macroeconomic volatility, and rising unemployment in affected industries.
    • Short-term impacts are less significant as China’s export competitiveness shifts towards higher-value production stages and an overall manageable trend of industrial relocation.

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