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Why Chinese Manufacturers Are Leaving the Pearl River Delta to Go to Vietnam

File image of a Maxport factory in Hanoi that activewear for various textile clothing brands. Nhac NGUYEN / AFP

International companies are by no means alone in looking to move their supply chains out of China. A growing number of Chinese manufacturers are doing the same, albeit for very different reasons.

While U.S., European and Japanese companies have been frustrated by souring political ties, tariffs, and ongoing lockdowns, Chinese companies see an opportunity to take advantage of new regional free trade agreements and cheaper labor costs in nearby countries like Vietnam.

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