Many companies are thinking through a China plus one strategy, with new capacities being created in Eastern Europe and Mexico. In any case China’s labour cost arbitrage no longer works, as wages have jumped over the course of the past five years. Consequently, new manufacturing locations that have robust infrastructure, low taxes and an efficient and predictable judiciary are benefitting from the reallocation of capital. But China will continue to play a role for a long time to come, as this podcast explains.