Firms Reverse China Exit, Citing Ecosystem Challenges

Companies are reversing plans to move manufacturing out of China, finding it difficult to replicate the country's factory ecosystem, skilled labor, and reliable power abroad. U.S. retailer Target has moved some orders back to Chinese suppliers due to production constraints. Chinese fast-fashion retailer Shein is also scaling back some Vietnam operations. This trend occurs as the U.S. tariff advantage for countries like Vietnam narrows.