China sees no industrial or supply chain exodus and such claims are overblown, China's top economic planner said.
With global industrial division and distribution undergoing profound adjustments, it is natural that some firms would retreat from China due to lower costs or strategic considerations, the National Development and Reform Commission (NDRC) said in an article on its website.
However, manufacturing firms that choose to leave China risk huge opportunity costs, said the NDRC. As the world's largest manufacturing country, China boasts strong industrial supporting capacities. For instance, its outputs of more than 200 industrial products rank first in the world.
The country's business environment is also improving, with the new regulations on improving the business environment serving as a stronger institutional safeguard. In 2019, China's ease of doing business ranking ascended to 31 from 46 a year ago, ranking among the top 10 most improved economies.
Meanwhile, China's demographic dividend is translating into a talent dividend, said the NDRC. The number of people that have received higher education or professional skill training has exceeded 170 million and each year more than 8 million students graduate from college.
With its advantages in industrial chains, its business environment and human resources, China is confident that the current conditions are not conducive to an industrial chain exodus. Therefore, certain firms retreating from China will have only a limited impact on the country's economic growth, industrial upgrading and employment, it said.