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China’s supply chain remains one of the most important forces in global trade in 2026. Its manufacturing depth, logistics infrastructure, R&D spending, and control over key inputs make it difficult to replace. At the same time, tariffs, export controls, rising costs, and geopolitical risk mean businesses need a clearer China strategy than they needed a decade ago. This article explains how China’s supply chain evolved, where it remains strongest, and how companies can balance opportunity with diversification.

Quick answer: Should brands still manufacture in China?

China is still one of the strongest manufacturing markets for many product categories because of its supplier depth, tooling capacity, logistics infrastructure, and engineering talent. But brands should avoid relying on China as their only sourcing option. A stronger 2026 strategy is to keep China where it has clear advantages while building backup capacity in countries such as Vietnam, India, Mexico, or the U.S. when cost, tariff, lead-time, or risk exposure justifies it.

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The United States government has taken a significant step in its efforts to eliminate goods made with Uyghur forced labor from the U.S. supply chain. The government announced May 16th that it is blocking imports from 26 Chinese cotton traders and warehouse facilities, drawing criticism from China but receiving praise from U.S. lawmakers who advocate for stricter measures.

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