Issue link: https://iconnect007.uberflip.com/i/1540425
14 PCB007 MAGAZINE I OCTOBER 2025 F E AT U R E A RT I C L E by S yd n ey X i a o, P res i d e nt , G l o b a l E l e ct ro n i c s As s o c i a t i o n Ea st As i a China's Response to Global Trade Shifts: Adaptation, Not Retreat As global trade enters a new phase of trans- formation amid rising geopolitical tensions, U.S. and European calls for supply-chain localiza- tion, and increasingly strict sustainability regula- tions, China's electronics industry faces not sur- vival, but adaptation. China's Enduring Role in Electronics China remains the backbone of the global electron- ics supply chain. According to Prismark, the global PCB market grew 5.8% in 2024 to $73.6 billion, driven by AI servers, networking, and a rebound in electronics. China remained the leading producer, supported by cost advantages, expansion, and technological progress despite price pressures 1 . This scale, built over decades, cannot be easily replicated. While Western markets discuss reshor- ing, China's supply-chain depth and expertise will remain indispensable for the foreseeable future. Diversification, Not Departure One trend is the expansion of Chinese manufac- turers into Southeast Asia. Companies from Thai- land to Malaysia are building what many describe as a second production line. This is not an exo- dus, but a pragmatic strategy to hedge against tar- iffs and regulatory risks while keeping core R&D and high-volume production in China. China and Southeast Asia are becoming complementary rather than competitive.