Multiple Pressure Causes Chinese Garment Factories To Close Or Move Out

Data show that in 2010, China produced 43.6% of the total imports of clothing from rich countries, but this figure was in the first half of last year.

Feng Weiyao, the boss of the international company, has a huge plan for the new factory in the Phnom Penh suburb of Kampuchea. By the end of 2012, 1200 workers will produce 80 thousand brassiere each month and sell them to the United States and Europe.

This small Southeast Asian country will eventually occupy 1/3 of the output of the rice.

Feng Weiyao, 40, is

Delis is one of hundreds of textile manufacturers coming out of China.

Kampuchea is a popular destination.

In addition, Vietnam, Bangladesh and Indonesia, according to data from a British consulting firm, have increased their share of exports to the rich countries from 12% in 2004 to 17.3% in 2010.

They all have young people who are willing to work hard to earn less money.

In Kampuchea, you work 60 hours a week.

According to the Federation of Hongkong industries, the wages of Chinese factories have increased by 18% to 20% per year over the past 3 years, and the turnover rate of workers is 10% per month.

Shenzhen officials recently announced a minimum wage increase of 13.6% to 1500 yuan.

According to the Federation of Hongkong industries, squeezed profits mean that 1/3 of China's Pearl River Delta region's textile products, electronics and toy manufacturers will be forced to close or move abroad for about 6 000 Hong Kong dollars.

Last year, Kampuchea's textile industry took off.

In the suburbs of Phnom Penh, trucks carrying new factory workers blocked roads with poor roads.

The exports of some 300 registered textile mills increased to 35% in the first 10 months of last year, to 33 billion US dollars.

Workers in Kampuchea are showing a tendency to strike.

More seriously, other low-cost countries are also competing for factories.

One industry insider said: "the challenge now is whether there is another country's salary lower than Kampuchea - probably Burma, and we don't know what will happen."