The PC giants that clamored to move production capacity out of China a few years ago are now moving their production lines back.
According to Nikkei Asia, international PC manufacturers such as HP, Asus, and Acer are transferring some of their production capacity from Southeast Asia back to mainland China.
Behind this is the tight supply of memory chips due to the AI boom, which has led to rising costs for PC manufacturers.
PC manufacturing involves many aspects such as processors, storage, displays, batteries, etc. Parts supply, production coordination and delivery efficiency will all affect the final cost. Under pressure, China's complete electronics industry chain, efficient production capacity and manufacturing talent advantages have become prominent.
Data from research firm Omdia shows that in early 2025, a mainstream laptop priced at US$699 will cost approximately US$435 in components. Today, the material cost for producing similar computers has risen to US$699, and the proportion of core components in the cost has increased from 45% to 68%.
In fact, in the past two years, many multinational companies have tried to transfer orders and production capacity out of China due to disruptions from tariff policies. But after going around a bit, I found that I still had to go back to China.
In 2024, American shoe brand Steve Madden planned to significantly reduce the proportion of Chinese orders, and later returned part of its production to China; an American agricultural machinery company hit a wall after redirecting some orders to India, and then found its original Chinese supplier to place orders.
Zhou Mi, a researcher at the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, said in an interview with Sanlihe that the return of foreign companies to China is the result of the "resistance" faced by the companies and the "gravity" of the Chinese market.
"From supply chains, raw material stability to trade policies, China's manufacturing capabilities are more systematic, comprehensive, and stable than other countries. At the same time, the scale of the Chinese market continues to expand. Not only is the final consumer goods market attractive, but the demand for intermediate goods is also growing." Zhou Mi said.
In addition to the resurgence of orders, multinational companies are also continuing to expand their presence in China.
According to data from the Ministry of Commerce, in the first three quarters of this year, more than 6,300 foreign-funded companies made additional investments in China. Among them, investment in high-tech industries increased by 33.8%, accounting for more than 40%.
In Zhou Mi’s view, foreign capital’s continued increase in investment in China is the result of a comprehensive consideration of both supply and demand.
On the supply side, China's supply chain costs are relatively low, and its reliability, resilience and innovation capabilities are strong, which can help companies improve the efficiency of global delivery and innovation; on the demand side, China's ultra-large-scale market provides stable support for the development of these companies. The rich application scenarios and demand for intermediate goods also provide opportunities for multinational companies to carry out research and development and update products.
Take Finnish elevator and escalator manufacturer KONE as an example. China is KONE's largest single market and its largest R&D center outside Finland.
Jiafeng Bao, executive vice president of KONE and president of Greater China, believes that the value of China has never been just about cost. Enterprises can quickly test and apply digital service models on a large scale in China, and then bring them to local customers and even global customers.
From production and manufacturing to technology research and development, and then to promoting solutions developed in China overseas, China's role in the global layout of multinational companies is expanding.
From November 2 to 5, the 2026 World Internet Conference Wuzhen Summit was held. Artificial intelligence open source ecology, intelligent agents, embodied intelligence, etc. became the focus of dialogue. The integration of AI and manufacturing brings new possibilities for Sino-foreign industrial cooperation.
Zhou Mi said that China has policies to promote the connection between the science and technology chain and the industrial chain to achieve technology transformation, so that companies can quickly obtain market feedback and continuously improve their scientific and technological innovation capabilities.
Orders can be transferred and production lines can be adjusted, but what companies want to know most is where they can produce more efficiently, launch new products faster, and find the direction for the next round of growth. Multinational companies have come back to China in circles, which is the answer in itself.
｜Chief Planner: Yu Lan
｜Planner: Zhou Rui
｜Coordinator: Wang Qingkai Cheng Chunyu
｜Written by: Zhang Naiyue
｜Editor: Zha Zhiyuan
｜Proofreading: Huang Lei
｜Produced by "Sanlihe" Studio
