Cover Story: How Bad Is China’s Manufacturing Exodus?

China’s strict pandemic controls blocking production and logistics threaten to add impetus to the manufacturing exodus that has been picking up speed over the past decade, international trade experts said.

The Covid policy disruptions add to pressures from rising labor costs in China and worsening Sino-U.S. trade tensions. With low labor costs and surging domestic demand, Southeast Asia and India have become the most popular destinations.