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What is an indicator that production should be shifted from China to a non-China facility?

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The general rule of thumb is if non-China production can reach 70 percent of the level that can be achieved by a China factory, it may be a wise decision to house production in the non-China facility. Furthermore, as regional infrastructure continues to improve, other regions are becoming more attractive destinations for establishing manufacturing facilities. There are numerous examples of corporations shifting their manufacturing bases from China to Southeast Asian countries such as Indonesia, especially after the implementation of the 2010 China-ASEAN FTA.



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