China remains the world's manufacturing powerhouse, according to the Boao Forum for Asia's latest annual report, solidifying its pivotal role in global value chains despite geopolitical shifts and trade tensions.
The Asian Economic Outlook and Integration Progress Annual Report 2025 reveals global dependence on Chinese intermediate goods reached 16% in 2023, surpassing North America's 15%. This gap has widened since 2018, despite U.S. trade measures targeting Chinese exports.
"Trade frictions initiated by the United States failed to strengthen its position in manufacturing value chains," the report states, noting China maintained leadership in 20 of 22 key intermediate goods categories, from electronics components to industrial machinery parts.
While some production shifted globally post-2021, China increased its foothold in technology-intensive sectors. The findings counter narratives of large-scale manufacturing decoupling, highlighting China's unmatched scale, infrastructure, and integrated supply networks.
For business leaders, the data underscores China's enduring appeal for production efficiency. Academics will find insights into Asia's evolving economic architecture, while diaspora communities gain clarity on home-country industrial strength.
