alt Hacker NewsSorry, but this sounds more like a myth, or at least heavily exaggerated. Similar to how Japan often gets romanticized.
Organizing the entire chain geographically at the scale you described (inter-city) doesn't bring huge cost advantages by itself. In China labor has historically been cheap, so the transport cost between regions was never the dominant factor anyway.
Most industrial clusters in China formed organically over time just like the rest of the world. Aside from some exceptions like mining, there isn't some master plan laying out entire cities as linear supply chains to the ocean It's not SimCity.
One thing you're right about is that there is less bureaucratic friction or 'lawyers' in the way when it comes to economic development. For the former, it's because economic growth is THE metric for the government, especially at the local level, so they do whatever it takes to make it happen. For the latter, it's because… well, in China no one sues the government, period. I'm not sure it's a good thing.
Disclaimer: I'm Chinese living in China.
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Strategic industries, i.e. 5 year plan ones, local gov will absolutely master plan to excruciating detail for complete industrial chain. Less strategic industries local gov will get a few anchor industries to root and rest is organic. Intercity proximity also brought huge advantages in terms of transportation speed, especially in 90s-00s. The other consideration is scale, a bumfuck tier3 chinese city specialize in xyz will have millions of people which naturally enables greater levels/depths of industrial agglomeration, which is what makes PRC exceptional. Think old Detroit motocity hub that dominated 90% of US car production. PRC has 100s of said cities for different industries. It's not myth/exaggeration that consequence of PRC scale, historically exceptional/aberration tier industrial clusters in other countries, PRC has 100s of, as baseline template.
Is the labor cheap in China or are you comparing it US salaries?
Can a person working in a Chinese tech factory for a major US company afford a reasonable place to live a reasonable distance, food, some entertainment, and have savings?
As a Chinese living in China, you must know the layout of the city does provide logical sense. I've only been once, and I buy stuff from factories fairly often. When I went there I basically went to a mall district where all the furniture was sold, then I went to the tile district to review tiles, I went to several other "districts" that where nothing but that single item.
I went to the window factory, which was directly beside more window factories, and directly beside that was the place that extruded aluminum for use. The aluminum they used was produced a up the road in what they called the metal district.
You are even saying that "industrial clusters in China" so there is clearly some amount of planning involved. There is obviously benefits to having all of the aluminum factories beside a aluminum producer, and having the shipping/packaging warehouses by the docks, etc.
There is some amount of government work at play here, either on a small scale or a larger scale to provide a reason for places to all setup.
I've also seen things that just are not possible in North America. Asked for samples of aluminum extrusions and had the die made and extrusion done in a day. Locally it would take months before a sample is at my door.
I've sent designs for quotes and get quotes in hours, half the time factory in NA doesn't even reply. And even when it does it's more of a "go away" then anything else.
I've seen live video of robotic factories building entire cabinets for housing.
There is some amount of rose coloured glasses in this thread. But we cannot deny that China wants business and can get stuff done fast and efficiently. That cannot be said for modern day factories in US or Canada. The work ethic and desire for business are just completely different.