Illustration: Liu Rui/GT

Intersport, one of the world's largest sporting goods retailers, is considering shifting production to China, the Financial Times (FT) reported on Monday. A reason this report has garnered attention is that it came amid discussion on whether sports brands, along with other companies in labor- and capital-intensive industries, might shift production from China to other Asian countries with lower US tariff rates. And Intersport's reported move tells a much more nuanced story about the Asian supply chain. 

According to the report, Intersport International's chief executive Tom Foley told the FT that the group was considering sourcing a greater proportion of its private-label goods - which accounted for about 1.4 billion euros ($1.6 billion) of revenues last year - from China.

China's sports manufacturing industry benefits from a comprehensive and evolving industrial chain that spans from the supply of raw materials to the manufacturing of finished products. This provides the industry with resilience for development. Even in the face of growing global trade uncertainties, China's sports manufacturing industry still holds vast potential for growth.

The global sports industry's supply chain is undergoing structural adjustments, with some brands expanding their supply chains from China to Southeast Asia, establishing complex and interconnected production networks in the region. The drivers behind this restructuring are varied. Rather than viewing China and Southeast Asian countries as being in a zero-sum competition, it's more accurate to see them as forming a closer manufacturing network, with China's innovation playing an important role in driving the transformation and upgrading of the supply chain.

China's sports manufacturing industry is shifting toward innovation-driven and brand-oriented development. More and more companies realize that relying solely on low prices is no longer sustainable - quality and innovation are key to staying competitive. 

For example, according to China Sports Daily, Anta Group stands out in terms of research and development (R&D) investment. In 2024, the company invested about 2 billion yuan ($278 million) in R&D, an increase of more than 20 percent year-on-year. Such a focus on innovation is already yielding results in boosting the firm's competitiveness. Some Chinese companies have achieved technological breakthroughs that have enabled their products to win the bidding for international sporting events such as the Olympics.

When discussing the restructuring of the Asian sports manufacturing supply chain, one often overlooked factor is China's growing consumer market. According the National Bureau of Statistics, in the first half of 2025, retail sales of sports goods - viewed as part of the consumption upgrade category - increased by 22.2 percent year-on-year, significantly outpacing the 5 percent growth in total retail sales. This robust momentum is driven by shifting public attitudes toward sports, the popularity of major sporting events, and technological advancements in sports equipment manufacturing.

Further highlighting this trend, a forecast shows that China's sports equipment market will reach 602.1 billion yuan in 2025, a 14.2 percent year-on-year increase, according to CCTV News. This projection reflects the sector's continued expansion prospects, positioning it as a growth engine under the broader goals of consumption upgrading.

In China, there's a synergy emerging between supply and demand, creating a comprehensive advantage. On the one hand, the growing consumer market is generating profits for businesses, which in turn fuels investment in technological innovation and manufacturing upgrades. On the other hand, high-quality products further stimulate consumer demand. 

While some in the West may cling to outdated notions of "low cost," the Asian sports manufacturing industry is undergoing significant changes. The combination of production and consumption advantages in China is becoming a new model for the upgrading of labor- and capital-intensive industries, attracting international investment. More companies may become more interested in China, including but not limited to Intersport.

Intersport's main sourcing markets reportedly include China, Bangladesh, Vietnam and Cambodia. According to the FT, Foley said that "it's not a situation now that we have to move from Bangladesh to China - but we could do it." This reflects the ongoing restructuring of the Asian supply chain. What's crucial is not whether an actual shift in production occurs, but rather the increasing interconnectedness of the supply chain, which will enhance resilience against the backdrop of US tariffs.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn