China has been the world's factory for over four decades — but that could be changing soon, as even Chinese firms are moving supply chains out of the country.
While Western countries have already been doing this since 2018 after then-President Donald Trump launched a trade war against China, homegrown companies from the manufacturing giant are now following in their footsteps.
To be sure, Chinese manufacturers aren't moving all their production out of the mainland. But a combination of geopolitical risks — such as tensions with the US — and rising costs are pushing them to look for alternatives.
"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," Shay Luo, a principal at consulting firm Kearney told Insider.
While India — which is set to overtake China as the most populous nation by mid-2023 — is likely to be a key beneficiary of the shift, much of the shuffle is headed to nearby Southeast Asia countries such as Vietnam, Thailand, Malaysia, and Indonesia.
Further away, lower-cost havens nearer key consuming markets — such as Mexico for the US market and Eastern Europe — are also proving popular, Luo said.
Here are the six countries these supply chains are moving to: