The shrinking of China's manufacturing sector is a big deal in the new normal given that China was once the world’s factory. Anbound’s research team is of the view that the China manufacturing sector will be facing dual pressure – the revival of manufacturing sector by developed nations and manufacturing competition from other emerging markets. The shrinking of China’s manufacturing sector will fundamentally weaken its long-term competitiveness. China should be utterly resolute in implementing its reform of the economy in order to innovate and upgrade the manufacturing sector.