China is still the popular hotspot for investors in manufacturing sector although some of the developing countries are now showing signs of their potentials. Anbound's scholars are of the view that the Chinese manufacturing sector is facing dual pressure. Ten years later, America might emerge as the world’s low-cost factory. Among the medium-skilled competitors are Mexico and Thailand while the low-skilled competitors include Vietnam, India, Indonesia and Bangladesh, and Cuba could be one of the competitors too. Therefore, China must transform its economy in order to innovate and upgrade its manufacturing sector.