Gifts / Sports & Toys

Currently, hit by tariffs, epidemics and rising costs, some global manufacturers are reducing their reliance on Chinese factories.

But Ryan Guniger, CEO of Kids2, did the opposite. The Atlanta-based toy and baby products manufacturer recently spent $20 million to open a new factory in the Yangtze River region in central China.

Facts have proved that China's dense supply network, still competitive labor costs, and growing domestic market are too attractive.

Guniger said: "For us, being a central position in China is more important than any benefit in other markets." He saw some suppliers and competitors set up factories in other countries, but found that the cost of new factories was too high. , Labor shortages and difficulties in finding suppliers, they had to move back to China. He said: "Our products need sewing, electronic components, steel, plastics-these are all necessary in China."

Jack Sun, general manager of the Kids2 factory in Jiangxi Province, said that the biggest advantage of Southeast Asia over China is lower labor costs, "but the supply chain is not good. Unlike in China, you can buy everything." In central China, it is easier and cheaper to recruit workers than in the affluent coastal areas. In addition, building a factory in China also makes it easier to sell products to about 400 million middle-class groups in the domestic market.

At the beginning of the epidemic, some foreign companies said that the impact of the epidemic has increased the motivation to reduce their dependence on China. However, the annual membership survey released by the European Union Chamber of Commerce in China in June showed that its member companies are now strengthening their joint ventures in China and China's position in the supply chain.