According to Director of the Institute of Asian and African Studies at Moscow State University Alexey Maslov, new smaller companies will soon come to the country after the departure of major players like Apple, Microsoft, and others
The departure of global companies from China would change the market and push other companies to develop production, Director of the Institute of Asian and African Studies at Moscow State University Alexey Maslov told TASS.
“I think the market will simply change. First, which companies left China? The manufacturers of mass-produced, cheap goods. They can be produced most profitably in countries like Pakistan, Bangladesh, and India. It makes sense to produce something that requires great vertical integration, that is, everything from a small screw to a large machine, in China. Second, a number of companies left China due to pressure from the United States. Apple is a prime example. And given that Apple has now ventured to Thailand and India, it is unlikely that it will make a full return any time soon,” the expert said answering a question about whether China can lose the status of a world factory after production of a number of global companies was transferred to other countries.
According to Maslov, new smaller companies will soon come to the country after the departure of major players like Apple, Microsoft, and others.
“[New] companies will emerge; despite competition, they still require high-quality products. Similar markets are already available, for instance, in Malaysia and India. China is therefore unlikely to return to a mass producer status. China would manufacture its own high-tech goods,” he added.
