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Is China's Low-Wage Edge Waning?

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Mr. Roques
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Supply Network Guru
Re: One more reason - Chinese market
Mr. Roques   11/25/2012 4:39:43 PM
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Well, chinese manufacturers AND the chinese government should be worried. 

China has the benefit that even if wages increase, they already have the built capacity and trained HR to do the work. If a company decided to move to another country, they would need to consider the wage difference but also the CAPEX needed to install new factories and/or train workers.

elctrnx_lyf
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Supply Network Guru
Re: One more reason - Chinese market
elctrnx_lyf   11/23/2012 1:57:21 AM
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Increasing wages are dfinitely a big concern for chinese manufactures, also many western companies are looking to bring back the manufacturing to local companies. I suppose there will be much erosion of differences in the future to enable the OEM companies to do as much as local production possible.

_hm
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Supply Network Guru
Re: One more reason - Chinese market
_hm   11/19/2012 7:14:05 PM
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@Eldredge: Another Chinese wishes is to graduate to value added product from low cost assembly. As China is getting powerful, they are more visisble in value added market where ROI is very good and it also has bright future.

 

Barbara Jorgensen
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Blogger
Wage issue
Barbara Jorgensen   11/19/2012 4:32:50 PM
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I agree with harpat's point. The wage issue is not US-China; it's China vs ROW.

Ariella
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Supply Network Guru
Re: is China's low-wage edge Waning
Ariella   11/19/2012 1:23:40 PM
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@harpat949 "The biggest worry the Chinese have is competing with other third world countries for labor and not with USA." I tend to agree with that. Even "American" brands often rely on overseas labor for production because they don't want to pay American wages and benefits, and they, certainly, don't want to have to negotiate with a union.  

Eldredge
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Supply Network Guru
Re: One more reason - Chinese market
Eldredge   11/18/2012 6:18:19 PM
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@hm -  You bring up an improtant point. Access to a significant market in China isone motivation to do business (manufacturing) there. If that market does not develop, it will take away from the attractiveness.

_hm
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Supply Network Guru
One more reason - Chinese market
_hm   11/17/2012 3:26:24 AM
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Cost is perceived as one advantage. One more reason to have facility in China is Chinese market. Chinese law and compliance may force many firm to have local facility for manufacturing. Since manufacturing is done in China, supplier needs to be preset there too.

When Chinese market contracts, many organizations will depart China quickly.

 

Nemos
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Supply Network Guru
Some thoughts
Nemos   11/16/2012 5:33:36 PM
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I believe will be a great step forward if we disconnected the labor cost from the final product. I know that it sounds extremely difficult to be happening and it is against the fundamental laws of the economics. But take a moment and think about it ... What would be the benefits of doing that ?  

harpat949
User Rank
Stock Keeper
is China's low-wage edge Waning
harpat949   11/16/2012 5:00:00 PM
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I don't think so judging by the prices of Chinese products sold over the internet. There are camparable items at one tenth to one fourth the US made prices. Without quoting what the chinese labor rates are and what the labor cost differences are, the article looks more like wishful thoughts than reality. The biggest worry the Chinese have is competing with other third world countries for labor and not with USA.



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