Sourcing in China in 2025: Resilience, Transformation & Strategic Shifts

Despite discussions around reshoring and diversification, China remains, in 2025, a central player in global industrial sourcing. Many companies have explored alternatives, but few have truly moved away from China. Rather than losing relevance, China has evolved its role in global supply chains. It hasn’t weakened — it has adapted.

Sourcing in China

China in 2025: Still at the Heart of Global Supply Chains

More than just a low-cost manufacturing base, China has become a strategic industrial partner, capable of delivering complete, fast, and technically demanding solutions. For instance, in the lithium-ion battery sector, China still accounts for over 70% of global production. For European e-mobility and bicycle manufacturers, it remains essential. In electronics, major players like Apple, Dell, and Lenovo continue to rely on Chinese facilities for final assembly due to China’s highly efficient logistics and deep technical expertise.

Even in highly specialized fields such as precision machining, multi-cavity plastic molding, or high-pressure die casting (HPDC), many European companies continue to source from China — not only for the know-how and responsiveness, but also for competitive pricing without compromising quality.

During one of our sourcing missions in Vietnam, for example, we found that tooling costs for stamped parts were up to three times higher than in China. This gap reflects decades of experience among Chinese toolmakers, their mastery of heat-treatment technologies, and their easy access to local steel and technical components.

The Pillars of China’s Industrial Strength

What sets China apart is, first and foremost, its massive production capacity. In Guangdong province, for example, some electronics plants run 24/7 with thousands of workers and automated lines capable of producing millions of parts monthly. China also boasts a high level of specialization in sectors like electronics, mechanics, plastic injection, and mold manufacturing. The Zhejiang province, which we’ve worked with extensively in our sourcing projects, hosts a dense network of automotive spare parts manufacturers, covering a broad range of product categories.

China’s industrial clusters are particularly well-integrated: in a single industrial zone, you’ll often find the toolmaker, injection shop, fastener supplier, and packaging partner within short distance — which drastically shortens coordination time. Logistics providers are often located right next to factories, making pickups and shipments fast and seamless.

Moreover, China has direct access to a wide range of materials and components. The country produces a significant share of its own steel, engineering plastics, and rare earths — all critical for producing motors and electronic parts. This self-reliance offers a clear advantage, especially during global supply tensions or material shortages.

Finally, China’s logistics infrastructure is among the most advanced in the world. Shanghai is the busiest port globally, and rail links to Europe via the Belt and Road corridor now deliver freight in just 15–20 days — compared to 35–40 days by sea. This integrated network is a major factor in China's industrial competitiveness on the global stage.

An Industry in Transition: Upgrading and Innovating

For several years, China has been undergoing a strategic shift toward higher-value manufacturing and innovation. The old “Made in China” label is being replaced by an industry increasingly driven by value creation. Automation is expanding rapidly, especially in response to rising labor costs. For example, textile factories in Jiangsu have halved their headcount by deploying fully automated cutting and sewing lines. In the mechanical sector, we’ve visited CNC machining workshops in Zhejiang running robotic arms with sub-micron precision — 24/7.

China is also investing heavily in future-focused industries such as batteries, robotics, semiconductors, and electric mobility. Cities like Shenzhen and Hefei have become major tech hubs, home to global leaders like BYD (EVs), CATL (batteries), and DJI (drones).

Strategic industries like aerospace and space exploration are accelerating:

• The COMAC C919, China’s first domestically developed mid-range commercial aircraft, entered service in 2023 with China Eastern Airlines.

• The Tiangong space station is now operational, with multiple lunar and interplanetary missions planned before 2030.

These programs — backed by significant government funding and a high-tech supplier ecosystem — are helping elevate the overall industrial base. In our own discussions with technical parts manufacturers, we’ve observed a strong commitment to investing in next-generation machinery, operator training, and inline quality control systems.

This move upmarket is attracting new business, particularly from European buyers seeking suppliers capable of meeting strict technical specs and delivering both performance and precision. The image of China as just a low-cost manufacturer is fading fast — it's now also a place where complex, high-value products can be designed, produced, and improved.

The Ideal Sourcing Project Profile for China

China remains a top destination for sourcing technical, complex, and large-scale projects. In our experience — particularly in the IAM automotive sector — sourcing projects requiring high volumes, tight tolerances, and fast turnaround times often rule out other regions. In these cases, China stands out not just for price, but for speed, capability, and production reliability.

As previously mentioned, tooling costs — heavily influenced by a supplier’s technical expertise, productivity, material access, and amortization capacity — highlight China’s lead over other emerging sourcing hubs in Asia.

If your project involves high-value products, custom tooling, large volumes, or aggressive time-to-market objectives, China is hard to beat. It offers impressive industrial responsiveness and deep experience working with international OEMs. With the right local oversight, sourcing from China remains a strategic choice for companies prioritizing precision, scale, and reliability.

China in 2025: A Strategic Partner — With the Right Approach

In 2025, China is no longer just a low-cost production base. It is a high-level industrial partner, capable of handling technically demanding, large-scale projects aligned with long-term goals.

But with this industrial maturity comes a new level of complexity: rising costs, regulatory pressure, ESG requirements, and geopolitical uncertainty. Sourcing in China cannot be improvised. It requires a deep understanding of the local landscape, careful partner selection, and tight operational follow-up.

That’s exactly where we come in:

We support companies in identifying the right suppliers, managing technical sourcing projects, and securing every step of the process. Our approach is pragmatic, grounded in reality, and designed to unlock China’s full industrial potential — without underestimating the challenges.