A China Slowdown? More like an Asian Manufacturing Boom

Nov 04, 2018

Various media, including Bloomberg, Financial Times, and New York Times, among several others, have been commenting on a “China Manufacturing Slowdown”. Gloomy talks about trade wars, and even some China blogs have been producing headlines such as “Would the Last Company Manufacturing in China Please Turn Off the Lights”. That blog suggests that, among their clients, “A huge chunk of American companies are looking to move their manufacturing from China.”

Strong words and predictions indeed. But let’s cut to the chase. They are largely nonsense. Why do I say this?

The reason is that I happen to be in Hong Kong for the Dezan Shira & Associates annual partners meetings, at which we analyze the year gone by and commence planning for 2019. We base our upcoming investment strategy and needs as a business on past performances, so what has happened during this year is of immense importance to our future direction and decision making for next year. With us about to complete our 26th year of operations in China, there is a lot of behavioral data we can examine. Plus, with 13 offices throughout the country (including Hong Kong), we can look at a lot of regional data too. So why do we disagree with the esteemed company of global newspapers quoted above and various China blogs?

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