Should "Made In China" Price Increase?

Import

Prices are rising and become the pressure source of inflation.

From shoes to auto parts, Chinese made goods are on a higher CIF price.

US import prices have risen 8% in the past two years.

This result excludes oil that is driven by global demand and geopolitics.

Because of China's existence, the global market has basically been in the low supply cost period in the past 30 years.

In March of this year, as an intermediary trader, the Hongkong logistics and consumer goods exporter Li Feng Limited has issued a warning that the prices of Chinese made products will go up.

Li Feng believes that the wage policy adjustment in Beijing in 2009 and the sharp rise in export prices subsequently ended the period of low supply cost.

Clothing consumption

Prices have declined for 13 years.

Now cotton prices have risen sharply.

China's labor costs, pportation costs and appreciation of the renminbi have also prompted producers and retailers to raise prices.

Up to the end of May, the price of clothing in the United States increased by 1% in the 12 months.

The clothing industry association of America estimates that the price of its member enterprises will rise by 4% to 6% over the same period this autumn.

Us CPI

The increase will increase to around 4%.

"Lewis turning point" refers to the turning point of the rapid rise of wages in rural areas as the rural surplus labor force in developing countries has gradually decreased.

For decades, hardworking Chinese workers have lowered labor costs, and now Chinese workers demand better treatment and working conditions.

Perhaps for quite some time, Chinese labor and Chinese goods will still be cheaper, but please remember: it no longer shoulders the responsibility of low cost and low global cost.

It is impossible to find a replacement of a large scale.