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However, recent developments have dramatically challenged China's manufacturing dominance. The zero COVID policy and the resulting lockdown measures led to significant disruptions across Chinese factories, paralyzing supply chains at critical junctures. The policy, coupled with rising geopolitical tensions and arbitrary regulatory crackdowns, created an environment fraught with uncertainty. CEOs and corporate strategists began to question the sustainability of their reliance on Chinese manufacturing, fearing sudden shutdowns or policy shifts could cripple their operations.
Companies Voting with Their Feet
In response, several major global companies have started to rethink their supply chains and diversify their manufacturing bases: