Planning official admits mid- to low-end producers pulling out of ChinaBusiness | 17 Jul 2019 1:22 pm
China has not seen a large-scale exit in its manufacturing sector and is confident of attracting more foreign firms seeking long-term development, the top economic planner said yesterday.
"Most of those pulling out are mid- to low-end firms and the impact on China's economic growth, industry upgrading and employment is generally controllable," Meng Wei, a spokesperson of the National Development and Reform Commission (NDRC), told a news conference when answering a question on reported withdrawals.
Citing changes in the global industrial landscape and the upgrading of China's manufacturing industry, Meng said it was a normal phenomenon for some enterprises to set up factories abroad.
"It is not easy for companies to relocate, and there are a number of factors to consider, including operating costs, industrial workers, supply chain support, transportation and even manufacturing culture," she said.
She said that with a series of policies and measures starting to take effect, the overwhelming majority of enterprises will stay in China for long-term development, and more enterprises will come to invest in China.