Market News

Gerber’s Tweet Hints at Downfall of China’s Manufacturing Supremacy

Ross Gerber, Co-Founder and CEO of GK ETF and a noteworthy investment advisor, tweeted his views on the end of China’s golden era of manufacturing dominance.

Several foreign companies do not approve of the mainland’s enhanced scrutiny of technology companies along with the enforcement of stringent norms. Additionally, the populace is favoring domestic Chinese brands over international competition. That, coupled with the latest nationwide lockdowns due to the resurgence of the COVID-19 pandemic, is creating havoc for business operations.

Recently, technology bigwig Apple (AAPL) hinted at shifting its manufacturing base from China to India and Vietnam.

Similarly, the homestay platform, Airbnb (ABNB), is about to close its Chinese operations due to stiff competition and lockdowns.

Many have agreed that China’s dominance as a manufacturing hub has peaked and is fading now. Some on T

witter blatantly disagree with the thesis and believe that China’s low cost and efficiency cannot be matched by any other nation.

Meanwhile, some have even tweeted that manufacturing sites need to return to their home countries to boost employment. Indeed, it’s never too late.

Many are quoting India, Mexico, and Indonesia as the most probable options for new manufacturing bases. A few even joked that Gerber’s favorite electric vehicle maker, Tesla (TSLA), has no plans to leave the nation and is in fact doubling down on China. Some, who agree that China’s attractiveness is fading, believe that there is still a long time for manufacturing to come home.

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