labor costs

Is Insourcing More Than Just Wishful Thinking?

In January, The New York Times published an investigation into how the U.S. had lost out on manufacturing work for products “Designed by Apple in California” but “Assembled in China”. The report cited the...

Where Have the Migrant Workers Gone?

From Economic Observer Online: “If you could endure those three of four years away from home, you could make what would take you ten years in Beijing. After, you can enjoy your life with your wife and children. Why not...

New Labor Law Means Better Image But At Higher Cost – Wu Zhi

From Xinhua, via China Daily: Will China’s new labor contract law mean a better image and a move up the industrial ladder? Or will it push up wages and erode the country’s competitive advantage? And among these possible outcomes, which matters more? It depends on who you ask. Zhao Yumin, an expert with the Chinese […]

China’s New Weapon: Low Executive Pay – Michael Kanellos

Despite the low labor cost in China, there may be another way to attract foreign investment in China–Low Executive Pay. Read more from News.com: …Excessive executive pay has been a hot-button issue in American politics for years, but worldwide factors could one day make it a liability on the balance sheet. As companies in countries […]

Rising Production Costs Join the List of What China Exports – Carter Dougherty

From International Herald Tribune via The New York Times: During 20 years in the toy business, Anthony Temple has reveled in the bounty of cheap stuffed animals, coffee mugs and figurines on sale from China. But this year, his buying trip for his London-based company, Rainbow Designs, resulted in a rude awakening. Traveling through the […]

Foreign investors may quit if China tightens up labour law – Christine Buckley

From Times Online: A reform of Chinese labour laws may lead foreign investors to leave the People’s Republic in favour of rival Asian nations with weaker labour standards, employers have said. A Bill introducing tough laws that prevent the exploitation of workers, including regulations that exceed some European standards, is heading for the Chinese People’s […]

China’s competitiveness hit by energy costs – Tom Mitchell

From the Financial Times (link) The competitiveness of China’s manufacturing industries has suffered serious erosion over the past year, according to one of the world’s largest trade sourcing companies. Hong Kong-based Li & Fung group, which manages a $7.1bn a year trading business, said price rises crept back into the Sino-US and EU supply chains […]

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