Boston Consultancy Said 15% Of US Companies Are Going To Withdraw From China

15% of the United States

The biggest bottleneck of labor-intensive enterprises is manpower.

Although the wages of Chinese workers are not small, they are still relatively cheap compared with the United States. Many labor intensive enterprises believe that the return of US capital in labor-intensive industries is rare.

Zhongshan branch, a professional management consulting firm specializing in foreign direct investment consulting, has also revealed to reporters that they have dozens of foreign clients in Zhongshan. At present, there has been no cancellation or closure of US capital enterprises.

Dongguan Ho Chi Electronics Co., Ltd. and Shenzhen shengjiali Electronics Co., Ltd. also said that, as far as they know, the large-scale withdrawal of US capital has not yet been revealed.

In fact, in the survey, reporters found that in the production of high technology carbon fiber baseball bat was pferred to the United States by the group of Jia Dun, Guangzhou self strengthening sports equipment company is busy hanging recruitment notices to the major websites.

"We are now expanding the production of fishing rods. Now the idle workshops have all started, and the company is expanding its workforce from more than 500 to 1000," said MAY, a company employee.

In addition, another member of the Guangdong group, Dongguan's Dongguan Xun Xun electrical appliances Co., Ltd., said that they are operating normally and have not heard of the withdrawal of US capital.

However, according to the chairman of the Greater China region, the labor intensive business is very difficult after the rising labor costs, and the number of employees has been reduced by more than 10 thousand from the most time.

The company only uses automation instead of manual operation, so that the wages of non worker technicians will be more than two times that of the original.

US investment has dropped, but EU investment has increased.

The latest monitoring data from the Ministry of Commerce show that in the first 8 months of this year, the United States invested 967 newly established enterprises in China, down 5.29% from the same period last year, and the actual amount of investment in foreign capital amounted to $2 billion 545 million, down 14.42% from the same period last year.

It seems to make people smell the wind and rain.

At the same time, however, investment in other countries outside the United States is not declining.

In the first 8 months, 14496 new Asian enterprises and ten countries and regions (Hongkong, Macao, Taiwan, Japan, Philippines, Thailand, Malaysia, Singapore, Indonesia and South Korea) invested in China, an increase of 8.66% compared with the same period last year, and the actual amount of investment in foreign capital amounted to US $66 billion 972 million, up 23.12% over the same period last year.

The 27 EU countries invested 1132 new businesses in China, an increase of 8.53% over the previous year, and the actual amount of investment in foreign capital amounted to $4 billion 562 million, an increase of 3.28% over the same period last year.

The Boston consulting firm has not forgotten the bright spot in the Chinese market - for Western Europe, China will remain the main base for their low cost exports.

"Even if productivity is taken into account, the labor cost in the Yangtze River Delta region in 2010 is only 25% of that in Western Europe. With the increase in labor costs, it is estimated that by 2015, China's labor costs will reach 38% of Western Europe's labor costs.

But this growth is not enough to form a turning point.

In the next five years, China will remain a low cost producer in Europe. "

{page_break}

Chinese product services account for only 2.7% of us personal consumption.

China's market is turning into a new starting point for US capital

Harry Saiyadin (president of the American Chamber of Commerce in Southern China, vice chairman of the Asia Pacific Council of the American Chamber of Commerce)

In the view of American entrepreneurs, will the manufacturing industry return to the US mainland and will impact on "made in China"? Yangcheng Evening News reporter recently interviewed Harry Saiyadin, the president of the American Chamber of Commerce in Southern China and vice chairman of the US Chamber of Commerce Asia Pacific Council.

"The relocation of US manufacturing enterprises to the US will not cause a major impact on China's export manufacturing industry," Harry said.

Harry said that a recent expert report from the Federal Reserve Bank of San Francisco, "the US ingredient" made in China "pointed out that" in 2010, products and services from China accounted for only 2.7% of the total personal consumption expenditure in the United States. On average, when Americans spend 1 dollars on the purchase of Chinese made goods, 55 of them buy American services.

In other words, the US component accounts for 55% of the "made in China" in the US.

"According to the report, the products made in China account for only 1.2% of the total consumer spending in the United States," Harry said.

Therefore, the Boston consulting company expects that 15% of the manufacturing enterprises will be moved back to the United States, but only 15% of these 1.2% will have no major impact on China's export manufacturing industry.

Moreover, Harry believes that China's growing domestic market will become a new source of investment for us funded enterprises in China.

Harry pointed out that the "special report on the economic situation of Southern China in Southern China" released by the American Chamber of Commerce in March this year shows that 75.1% of the main business of American enterprises in China has been pferred to provide products and services to the Chinese market instead of exporting to other countries, and less than 24% in 2003.

Harry said, "this means that these enterprises are producing high value-added products for the Chinese market."

Harry expects that China's expanding domestic demand will provide huge opportunities for us funded enterprises.

Harry said, according to his understanding, in this regard, US capital enterprises will continue to increase investment in China.

As for the US funded enterprises moving from China to other Southeast Asian countries, Harry said: "most of the enterprises that migrate from China to other low-cost regions belong to the reprocessing and manufacturing industries with labor-intensive, low technology and high energy consuming products, which usually have a great impact on the environment, and moving away from China is also a good thing."

External single reduction makes small businesses bear the brunt.

Liu Bin (general manager, Shenzhen Max Technology Co., Ltd.)

For Chinese enterprises, how big the impact of "US capital withdrawal" on "made in China"? In the eyes of Chinese entrepreneurs, small businesses may be the first to be affected.

Liu Bin, a Shenzhen based technology company, focuses on mold technology and software production. The company's general manager, Liu Bin, told reporters that according to his knowledge, an American mold maker has contracted to four plants in six factories in China.

Liu Bin believes that high-end mold production has been dominated by the developed countries in Europe and the United States, but considering the cost of labor and so on, the European and American countries will outsource some of the low value-added orders to China.

And once these us orders return, some small businesses that undertake these orders will undoubtedly be the first to bear the brunt.

"There have been some small mold shops disappear this year," Liu Bin analyzed. The reduction of foreign orders is an important reason.