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Chinese Companies Also Want to Limit Their Exposure to China Risk

File image of garment workers in Bangladesh. Image: Munir Uz Zaman / AFP

Western companies like Apple aren’t alone in trying to limit their exposure to China. Chinese companies are increasingly eyeing overseas expansion too. While some of these moves are due to cost factors like lower salaries in countries like Bangladesh, increased geopolitical tensions are playing a growing role.

“We already see a lot of China-based manufacturers are actively looking at setting up overseas productions with anticipation of the supply chain challenges and political risks,” said Shay Luo from the consulting firm Kearney.

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