For decades, China has been known as the world’s manufacturing powerhouse. But with rising labor costs, shifting geopolitics, and global supply chain diversification, many European buyers are asking: Is China still the world’s factory in 2025?
At Eurasia Consultis, we work directly with dozens of Chinese factories every month. We’ve seen firsthand what has changed—and what hasn’t. Here’s our honest perspective on the current landscape.
China in 2025: Still a Manufacturing Giant
Despite global speculation about “decoupling,” China continues to dominate in several key sectors:
- Consumer electronics (from accessories to power banks)
- Home goods and small appliances
- Textiles and apparel (especially synthetic blends and mass-volume runs)
- Industrial components, tools, and plastic injection parts
What makes China hard to replace?
- Established supplier ecosystems (tooling, parts, packaging—all nearby)
- Mature infrastructure (ports, roads, customs handling)
- Production at scale (factories that can ramp up or down quickly)
- Strong export know-how (export documents, standards, communication)
In short: No other country matches China’s mix of scale, speed, and efficiency—especially for mid- to high-volume production.
What Has Changed Since 2020?
That said, sourcing from China in 2025 is not what it was five years ago.
1. Costs Have Risen
Labor and energy prices have increased steadily. As a result, low-margin goods (basic textiles, molded plastics) are now being sourced from Vietnam, India, and Bangladesh.
Our take: China is still competitive for complex or high-quality products—but not for rock-bottom prices.
2. Buyers Are Diversifying
COVID-19 and geopolitical tensions taught importers not to depend on a single country. Many now operate “China+1” strategies, sourcing from Southeast Asia while keeping core SKUs in China.
Our take: Diversification is smart—but abandoning China completely isn’t realistic for most businesses.
3. Tighter Compliance
Customs in Europe and the US are increasingly focused on documentation, product origin, and ethical standards.
Our take: Chinese factories are adapting. At Eurasia Consultis, we audit suppliers for EU compliance, labor standards, and certifications before production begins.
When China Is Still the Best Choice
China remains the most reliable option when you need:
- Advanced engineering (tooling, molds, electronics, motors)
- Short lead times with flexible scaling
- A wide variety of components sourced under one roof
- Production of goods requiring international certification (CE, RoHS, etc.)
Example: For a recent European client, we sourced a custom plastic/metal hybrid part with electronic components. No other country could meet the tolerance, timeline, and price point. The final order was delivered 12% under budget— and on time.
So, Should You Still Source from China?
Yes—if you want reliability, experience, and product diversity.
No—if your only priority is ultra-low cost, or if your product is extremely simple.
The smarter move is to evaluate China product-by-product. At Eurasia Consultis, we help our clients map out:
- Where to produce each SKU
- Which suppliers are reliable in 2025
- How to balance cost, quality, and risk
We don’t just say “China or not”—we find the right factory for your specific goals.
Final Thoughts
China is evolving—not fading. It’s no longer the cheapest place to produce every item, but it remains a central hub for quality-controlled, scalable, and certified manufacturing.
In 2025, China is still the world’s factory—but it’s a smarter, more selective version of what it was. If you know how to work with the right suppliers and stay ahead of the shifts, it can still be your most powerful sourcing partner.
Want help identifying whether your next product should come from China or elsewhere?
Contact Eurasia Consultis today for a tailored sourcing strategy.