China's Overseas Production-Supply Bases: Network Structure and Implications

Global supply chains are undergoing structural change as the prolonged U.S.–China strategic rivalry, the normalization of geopolitical risks, and post pandemic disruptions shift the organizing principle from efficiency to stability, resilience, security, and trust. Major economies such as the United States, EU, and Japan have responded by strengthening policies for supply chain diversification, friend shoring, and strategic management of critical minerals and advanced industries. In response to these environmental changes, China is also strengthening the strategic nature of its overseas economic activities. Whereas Chinese companies' overseas expansion previously focused on market expansion or resource acquisition, it has recently shifted to a structural network expansion strategy aimed at responding to the restructuring of global supply chains. Specifically, China is expanding its global economic network by simultaneously establishing overseas production bases, supply bases, and infrastructure/logistics networks through a combined approach involving Outward Foreign Direct Investment (OFDI), overseas contracting projects, and trade activities. This strategy goes beyond merely relocating production bases overseas. China is pursuing a multi-layered strategy: strengthening global market access through overseas production bases, establishing supply bases to secure critical minerals and intermediate goods, and solidifying long-term economic footholds through infrastructure and industrial park development. This can be understood as China's strategic response to maintain its economic influence and enhance industrial competitiveness amid the global supply chain restructuring. Therefore, China's overseas expansion should be analyzed not merely as a phenomenon of increased investment, but as a process of restructuring global production and supply networks. This report approaches China's overseas economic activities from this perspective, understanding them as a strategy for building production and supply networks, and systematically classifies China’s overseas bases into three functional types and identifies core hub countries through standardized indicator analysis.