Insight

China’s manufacturing challenge: going lean

April 2016
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Recent data on Chinese manufacturing shows an economy intransition. The Chinese manufacturing sector must adjust to global shifts—otherwise it risks being held back by its earlier success.

At a glance

  • China’s advantage as a hub of low-cost manufacturing is eroding fast
  • China will likely have to align with the norms of developed markets to prevent being left behind
  • The country is experiencing its weakest growth in decades,underscoring Chinese companies’ urgent need to evolve from low-cost models into models that meet a global standard.

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