Global Foundry Supply Chain Undergoes Accelerated Restructuring as China’s System-Based Competitiveness Forges Industrial Resilience

SHANGHAI,April 25,2025—Amid deepening U.S.-China economic competition and a sluggish  EU manufacturing recovery, the 33rd Global Foundry Sourcing Conference highlighted key shifts:European orders are rapidly returning to China,North American sourcing chains are relocating to Southeast Asia and Mexico,and China's foundry industry is restructuring global supply chains through its system-based competitiveness.

As global tariff wars escalate and U.S.-China trade disputes deepen,European multinationals are rapidly pivoting casting procurement to Chinese production bases.This trend was reflected at the 33rd Global Foundry Sourcing Conference held in Shanghai on April 25, 2025,where an analysis of participant buyer data and suppliers' order distribution revealed the following characteristics in the foundry industry:

EU casting orders accelerate back to China,with substantial procurement potential emerging

Current conference data reveals European buyers now constitute 65% of attendees,demonstrating rapid growth in both procurement volume and buyer numbers.Despite EU manufacturing challenges,many European firms previously inexperienced in Chinese sourcing are now shifting procurement to China,driven by its advanced casting capabilities and robust upstream/downstream supply chain integration.Notably,Frese Group and LWM hosted dedicated procurement briefings,detailing urgent RFQs,China foundry supplier development plans,and vendor registration procedure,aiming to reduce component procurement costs and enhance product competitiveness.

Trade policy factors are driving a faster shift in North American buyers' casting procurement to alternative regions:

Since 2018, U.S. buyers have steadily reduced casting orders and spending in China,relocating supply chains to Southeast Asia and Mexico.This trend intensified following the Trump administration's "reciprocal tariffs" policy,with reports of suspended shipments for undelivered goods.The U.S. procurement share in China has now plummeted from 35% to below 10%, driven primarily by tariff parity measures and geopolitical realignment.

The foundry industry’s structural shift toward Southeast Asia is unstoppable,compelling domestic factories to redefine their global strategies.

Multinationals have long-established global supply chains with global manufacturing bases.In recent years,Chinese automakers (BYD, SAIC, Great Wall, Chery) have actively expanded overseas,setting up plants in Southeast Asia and Mexico while driving suppliers to build local facilities.FSC data indicates growing demand for Southeast Asian supplier development.At this sourcing conference,Techtronic Industries (TTI),a global power tool leader,announced 2024 revenue of $14.6 billion.The company will procure over $150 million worth of aluminum die-cast and iron sand-cast parts in Vietnam,while outlining supplier support programs to partner with Chinese foundry suppliers in expanding into Vietnam and global markets. Separately,ZF plans to source 2 million brake calipers/brackets in ASEAN,while Simmons and Taiwan Junde prioritized $22 million in cast parts orders for Chinese suppliers with ASEAN factories.FSC advises capable foundries to leverage this industrial relocation trend,accelerate overseas expansion,and advance toward becoming world-class suppliers.

China's foundry supply chain demonstrates resilient capabilities and integrated competitive strength

The conference organizer invited over 160 foundry enterprises including Shandong,Jiangsu, Zhejiang,Anhui,Guizhou,Ningxia,and Taiwan to participate in business negotiations.To address the industry's homogeneous competition challenges,the conference featured an in-depth analysis of Anhui foundry industry landscape by Mr. Xie Mingguo,President of the Anhui Foundry Association,who proposed breakthrough strategies for current market saturation.Notably,Ningxia Vier Casting demonstrated exceptional technical capabilities,while Qingdao Effort Machinery presented machining and supply chain solutions,collectively showcasing Chinese enterprises' established innovation ecosystem that integrates material development,production,and final inspection capabilities. 

FSC identifies global economic cycles,manufacturing slowdowns, and trade policy shifts as key drivers of the foundry supply-demand imbalance.China,the only nation with all UN-classified industrial sectors,leads nearly 50% of global industrial production.Dominating 48% of global casting output and consumption,it has established integrated supply chains spanning materials,equipment,and processing services.This systematic advantage is not merely a cost advantage, but rather an industrial foundation built up over four decades of industrialization, which is quietly reshaping the division of labor in global high-end manufacturing.

During the afternoon negotiation at the sourcing conference,foundry suppliers and buyers engaged in highly efficient targeted discussions,the representatives' faces were filled with the joy of harvest.

Future vision: digital platforms enable global industrial collaboration

The 33rd Global Foundry Sourcing Conference,co-hosted by Foundry-Suppliers.Com and Suppliers China Co., Ltd.,the organizer implements a rigorous vetting process for buyer qualifications,exclusively invited multinational corporations,overseas buyers,Asia-Pacific region and China sourcing center,and industry leaders.Currently, it serves over 120 Fortune 500 companies. It is further expanding its global supplier database to include foundry factory data from India, Vietnam, Thailand, Mexico, Eastern Europe, and other regions. This initiative aims to build a bridge between buyers and global suppliers, empowering domestic factories to expand into overseas markets.

Digital economy industry declaration

Mr.Wang Longhe,Head of the Foundry-Suppliers.Com,stated in his opening speech that Chinese foundry enterprises counter trade protectionism with openness: aiming to be both the "stabilizer" of the global casting supply chain and the "driver" of green smart manufacturing.This confidence comes from Chinese manufacturing specialists pursuit of millimeter-level precision and collaboration with global partners.