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Things Don't Get Made in China Simply Because of Cheap Labor

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mario8a
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China
mario8a   12/30/2011 12:24:16 PM
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Some of my friends in the US were thinking about changing their jobs to paint houses, that seems to be a safe job that would not be export to China. Currently my friends see Brazil or india as the New China, what i think makes China very attractive for investment is because of their relationship of the goverment in the industry, China can develop new products in three months when in my conpany even with all the resources and technology we developed products in two years.

Kevin G
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Re: DIfferent Viewpoint
Kevin G   12/30/2011 10:49:09 AM
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The headline made me think that there was going to be at least 1 reason listed..  I kept waiting for it and it never materialized.

whiteboytrippin
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worker safety and environment?
whiteboytrippin   12/29/2011 1:20:29 PM
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I've visited China a few times, tagging along during factory visits. I was told by locals that a particular foreign operated factory in the industrial area was recently fined by the Chinese government for emitting too much radiation, as measured curbside outside the factory. I don't follow such incidents as they occur in the U.S. but suspect the penalty and backlash from environmentalists and media would be larger than what was experienced at this particular factory in China. Even as a visitor I could sense that China is a place where one can get things done, sidestepping rules through well oiled connections (bribes), in this case at the expense of the workers and environment. 

gaulloa
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Re: you right... no excuses to the hate campaign...just work better!
gaulloa   12/24/2011 5:22:49 AM
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I totally agree with you:

I am a south american and lived in Asia for a long time. I currently work for asians. There are things I can add to your comments, to illustrate a little on the subject.

1-Low salaries:  is not the current main reason for western companies migrating to Asia. It used to be 15 yrs ago, when chinese  made us$100 a month, but now, you need $700-2500 for an acceptable worker. There are places where us$2000 won't get you a candidate at all, so this is not a real issue.

2- Convenience: the US Census Bureau said that one in six americans is in real poverty. Ask the government and most company owners why they are not hiring in US soil. Is because China is closer to the US that the US? Is because is easier to talk mandarin than english? Is because of taxes and relocating is simpler and cheaper?

Minimun wage in California is a little over us$10. That money will buy you a Ph.D or MBA  south the Rio Grande:  a Blue collar is even less, under $250/mo in all latin america. How come the US does not produce all around latin america either?

I' m not sure, but my feeling is that the work environment in China "lacks" the advantages of the inefficiency built around the western industry: people work at work, CEOs are willing to stay at the office solving things and having an arm and eye cut to lower time and costs, while in the US CEOs are good at the golf court, R&D is plain and simple, health is acceptable and cheap, families are real (parents even think of their unborn grandchildren future), plant workers are comitted and on top of that, China has the drive!

 

pocharle
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Supply Network Guru
Re: DIfferent Viewpoint
pocharle   12/12/2011 10:34:09 PM

Nemos,

Then what is it?

Nemos
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Supply Network Guru
Re: DIfferent Viewpoint
Nemos   12/11/2011 6:00:43 PM
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"The tradition that revolves around the Chinese of respect and honor"

Sorry but I will disagree with that, it does not exist in China. You can see it in Japan but now the younger people doesn't follow it even in Japan. Also is NOT the respect and honor the reason in China that labor union don't do strikes .......

builder7
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Stock Keeper
Reasons things are made cheaply in China
builder7   11/27/2011 2:42:42 AM
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Some of the reasons that things are made cheap in China are cheap labor, minimal regulations regarding age of factory i.e. smog and water pollution controls, lack of regulation in general, lack of real unions in China (everybody by law has to be in a state union), government subsidization of everything including free worker housing, transit tickets, and health care.  Free education for everybody as long as they can pass the tests.  No income taxes since the government owns it all anyway.  Since they are on the other end of the expansion coin their prices are cheap there.  They also artificially manipulate their currency, to the detriment of ours.  China outsources much of its labor to Africa and other places in Asia where the prices are even cheaper.  Once they take our core processes it will be nationalization time where they will confiscate all the factories.  Right now they want to bury us first, then they will take over the world.  They will take over the world no matter what happens because there are so many of them! 

So if American corporations have their way we will be like them where we will have dirty air and rivers again, no regulations, and no laws governing companies.  We will make practically nothing, in this dream of theirs, yet still buy the $4500 bedroom set.  Of course, this is only in their dreams because since they are destroying the market here there might not be as much work in China soon.

pocharle
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Supply Network Guru
DIfferent Viewpoint
pocharle   11/23/2011 8:35:30 AM
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One of the prime reasons why things are starting to move to China – the primary factor of course being labor as it is one of the largest costs a firm has to deal with. The other factors being efficiency. The average Chinese can produce 2-5 times as more than a person in the States and another 3rd world country such as Sri Lanka for instance. The tradition that revolves around the Chinese of respect and honor is quite similar reason of the success to the industrial boom we've seen in Japan during its growth. This type of production power is not possible in its neighboring country India due to so many labor management issues.

Thgolding
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Inventory Controller
Re: Labor Costs China
Thgolding   11/21/2011 2:06:16 AM
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That makes more sense.  It would be interesting to see the complete breakdown.

Engineering and Design, parts made by suppliers and their cost of labor to get an idea of the complete manufacturing costs and then separatly maketing. 

 

Clairvoyant
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Supply Network Guru
Re: Labor Costs China
Clairvoyant   11/20/2011 1:28:23 PM
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Apple currently employs 60,400, as found on Wikipedia, and it's latest revenue value is $108.3 billion. See here: http://en.wikipedia.org/wiki/Apple_Inc

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