A small but increasing number of foreign companies in China plan to relocate plants inland or outside the country because of rising labor and logistics costs, a survey by the American Chamber of Commerce in Shanghai showed. The proportion of companies with such plans doubled last year compared with 2008, AmCham Shanghai said.
The survey was conducted in December with 202 foreign-invested manufacturers in China that have a combined 1,500 plants.
Southwest or central Chinese cities such as Chongqing, Wuhan and Zhengzhou, and emerging Asian economies including India, Vietnam and Indonesia are new horizons for their lower-cost, export-driven operations, AmCham Shanghai said.
Of the respondents, nearly 83% said that their primary motive for locating manufacturing operations in China was to access the Chinese marketplace, up from 71% two years ago. Fifty-four percent said they plan to use China primarily as a base to supply other Asian markets, down from 50.5% in 2008. The survey found that 28% of respondents are considering moves to lower-cost areas in southwest or central China, up from 17% in 2008. In addition, 8% of respondents reported plans to relocate or expand outside of China.
