Promotional products companies aren’t the only ones moving at least some manufacturing out of China.

New data from CNBC’s Supply Chain Heat Map shows that China is losing more manufacturing to Vietnam, Malaysia, Bangladesh, India and Taiwan. Notably, China’s exports of promo-relevant goods like apparel, accessories, travel goods and footwear are dropping, the research indicates.

A textile worker in Vietnam, a country from which promo and other industries are increasingly sourcing.

Beijing’s “zero tolerance” policy on COVID, which has triggered swift and wide-reaching societal shutdowns when even a minimal number of virus cases are detected, is a leading factor chipping away at China’s long-held global manufacturing dominance.

“China’s zero COVID approach is impacting production, and manufacturers are seeking alternatives to the current ‘factory of the world,’” Antonella Teodoro, senior consultant at MDS Transmodal, told CNBC.

BREAKING- CNBC SUPPLY CHAIN HEAT MAP EXCLUSIVE: China, 'factory of the world,' is losing more of its manufacturing and export dominance, latest @MdsTransmodal data shows https://t.co/7GivDGE2tU #China #trade #vietnam

— Lori Ann LaRocco (@loriannlarocco) October 20, 2022

A large majority of products sold in the North American promo products industry continue to be made in China, but suppliers and distributors that source directly from abroad have increasingly sought to have more product made in other countries.

The phenomenon was already underway before former U.S. President Donald Trump instituted import tariffs on hundreds of billions of dollars’ worth of China-made goods. Still, those levies accelerated the movement to geographically diversify sourcing locales.

As with other industries, complicating factors stemming from COVID and China’s approach to the pandemic – which has led to shutdowns and slowdowns at factories and port operations – further accelerated promo’s push into other nations for manufacturing.

According to Counselor’s 2022 State of the Industry report, about 55% of suppliers said that within a recent 12-month span they’ve actively explored new countries from which to source due to trade uncertainty with China.

Will onshoring happen in a big way for the promo products industry? This video tackles the topic.

Asian nations, including Vietnam, India, Bangladesh, Indonesia and Thailand, have been among the most popular sourcing destinations.

There’s also been an intensifying focus on nearshoring – moving manufacturing closer to the end-market (North America) where products are sold/used. In this, Latin America, Mexico in particular, has become a more important sourcing locale.

For distributors that import products directly from abroad, Mexico was the second most popular country – behind China – from which to source. Distributors other top sourcing spots outside China have been Vietnam, India, Bangladesh and Honduras.

Despite some manufacturing moving out of China, promo executives expect that nation to remain the industry’s leading production center for the foreseeable future. A large resurgence in USA-made manufacturing is unlikely for promo, they add.