In this respect, some LDCs will be able to take advantage of the window of opportunity opened by China’s likely delocalization of the lower end of its manufacturing industry, through a combination of integrating domestic firms into manufacturing GVCs and attracting FDI. Domestically, this strategy should be complemented by policies on clustering, export promotion and labour costs. Policymakers need to expand the financing made available to these firms through national development banks or commercial banks.