Industrial relocation won't curb growth

The relocation of some manufacturing enterprises from China to overseas destinations in the past years has raised market concerns, especially due to the trade tensions between the US and China. Indeed, if manufacturing enterprises relocate abroad in large numbers, China's manufacturing sector could suffer a serious blow, which in turn could deprive China of a driver of economic growth.

Such concerns are understandable. But the speed or scope of the relocation of manufacturing enterprises from China to other regions is not fast or large enough to feel pessimistic about the future of China's economy. Besides, after the middle-and low-end manufacturing enterprises shift abroad, some high-end ones will take their place. And often the slowdown in manufacturing growth is usually followed by the accelerated growth of the service sector.

'Sixth industrial migration' in progress