Nike Does Not Invest In China

Officials say that China's investment will remain at its present level. The factory says the order is stable and the purchase price is slightly higher than that of Adidas. Nike's response is very skillful in the face of rising costs. "China's investment and production will remain at its present level."

In October 28th, Nike spokesman Erin Dabson denied the plan to divest from China.

In July of this year, Adidas president told the media that China's wage level was determined by the government and has gradually increased. "At present, ADI's production in China accounts for half of its total output and will gradually decrease thereafter."

Nike also follows the strategy of light assets in the world. Both ends of production and sales are completed by the factories and channels. Whether there will be similar plans will soon become the focus of the industry.

Recently, Nike responded by saying, "investment and production in China will maintain their current level."

As for how to cope with the global financial crisis and the rising cost of raw materials, he said he will focus on improving production efficiency and controlling production costs.

Reporters yesterday learned from a South Nike foundries that Nike's purchasing price has increased correspondingly this year as exchange rate fluctuations, labor and cost growth, but it can not offset all growth.

"When it comes to the details of future development, Nike talks about many industrial upgrading problems, aiming to control costs and risk sharing from other aspects."

The company official said.

However, Nike's response only guarantees that the total investment and production in China will not decrease, and does not mention whether the company will further increase its production in China with the development of the company.

At present, the industry's popular mode is that Southeast Asia has lower manpower costs, and Nike and Adidas will gradually increase production in these areas.

Yang Yelin, Deputy Secretary General of Guangdong footwear industry association, believes that China's comprehensive advantages as a production base are still obvious, and political stability is a major factor.

According to statistics from the Ministry of social work of Vietnam's Ministry of labour and veterans, there were 2300 strikes in Vietnam from 1995 to early 2008.

In the first 4 months of this year, spontaneous strikes continued to increase, with 295 times, some of which involved Nike and Adidas's foundries.