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    Western Businesses Worry About Raising Wages For Chinese Workers

    2011/6/7 14:01:00 71

    Wage Raising Western Enterprises

    The New York Times article June 1st, the original topic: enterprises worry about wage increases for Chinese workers. This year, China and its major Asian low-cost competitors raise wages, which have benefited workers in these countries.


    But trading companies and the West.

    Retailer

    But it faces greater cost pressures and makes prices higher in the US and Europe.


    Hongkong Lifeng group is the largest trading company that purchases Chinese commodities for American retail chains.

    Le Yumin, President of the company, said the company's average cost of commodities rose by 15% over the first 5 months of the year.

    Other commodity companies also face similar or more serious problems.

    Faced with Chinese wages rising at a two digit rate, executives of many companies have been flying to Vietnam, Bangladesh, Indonesia and other low wage Asian countries, looking for suppliers to replace China.

    But prices are rising all over the world, and driven by China, wages in many of these countries are growing rapidly or even faster, and these buyers have little choice.


    Luxury brands in January announced that by moving the production line to Vietnam and India, the company's dependence on China will fall from the current 80% to less than 50% in 5 years.

    But Vietnam's wage rise is not less than that of China, and India has always been a big one.

    Manufacturer

    Headache.

    Le Yumin said that India's infrastructure was "dilapidated", and labor services, including government regulations, made it impossible to build a Chinese style factory with tens of thousands of workers.

    In addition, many garment enterprises still have many misgivings about procurement outside China.

    "Everyone is worried about quality and needs to be trained for many years" to meet all kinds of specific requirements, said Bennett Model, President of Cassin, an American fashion designer.


    Le Yumin said that through the use of social networking sites, workers in developing countries all over the world are more aware of salary and increase the salary pressure of enterprises.

    He and other company leaders predict that over the next 5 years, factories that are over concentrated in southeastern China will gradually spread to all parts of China.

    The workers are increasingly reluctant to spend 3 days on the ride.

    Vehicle

    From inland to coastal factories, especially when domestic demand grows inland and creates more job opportunities.

    Even the recently opened high-speed rail lines failed to bring enough migrant workers back to coastal factories.

    In addition, the wage increase in inland China is even higher than that in coastal provinces, and the wage gap with the latter is gradually narrowing.


    Many companies choose to stay in China for their reasons: This is the fastest growing area for their sales.

    China has become the largest market for many products, such as automobiles and steel.

    Production and sale in China can prevent enterprises from facing the policy of "buying Chinese goods", anti-dumping investigations and other import restrictions.

    They can also be protected against exchange rate fluctuations.


    Wage growth and strong currencies have reduced Asia's attractiveness to western high value-added industries such as automobile manufacturing.

    But hardly anyone in the industry mentioned the possibility of returning these relatively labor-intensive manufacturing industries to the US or Europe.

    Le Yumin also held a negative attitude towards this statement.

    "The western world is not working in such industries," he said. "For the" made in Italy ", the workers are now very old, and no new workers can afford it.

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