Workshop of the world

China may only account for around 13% of the world’s consumption, but it is responsible for almost a third of the world’s manufacturing value add – the measure which accounts for the topical fact that supply chains can see goods cross borders several times before they make their way to the end consumer. This figure is even more astonishing given that some manufactured products are less easily traded, such as food. The United States, whose president is keen to revive its manufacturing base, accounts for about half as much – 15%. The economic efficiency of manufacturing clusters such as Guangdong province for electronics makes it challenging to relocate capacity on a whim, although countries such as Vietnam and India have positioned themselves as alternative hubs. However, with less than 10% of the cost of producing an iPhone being its assembly, they have a long way to go.

Source: World Bank, 2024 or latest available data.