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The End Of Cheap China: Rising Wages And Their Impact.

Posted in China Business

We have written countless posts bemoaning the end of cheap China and discussing how that is going to impact companies doing business in China.  We have also written countless posts discussing the countries we see coming to the fore as China replacements.  Obviously, companies are going to need to make very complicated and fact-laden decisions on whether they will stay in China or go elsewhere.

The Economist Magazine recently came out with an excellent article on these very things.  Entitled, “The end of cheap China: What do soaring Chinese wages mean for global manufacturing?” it does a great job highlighting some of the issues involved with making the decision to stay in China or go elsewhere and we recommend you read it if you are or will be facing that same decision.

For more on manufacturing moving out of China, check out the following:

What do you see happening out there?

  • Ernesto A.

    It seems the Economist does an “End of Cheap China” story every year. Here is last year’s version: http://www.economist.com/node/21549938 from March 2012. It begins by saying that “THE end of cheap China is at hand. Blue-collar labour costs in Guangdong and other coastal hubs have been rising at double-digit rates for a decade. Workers in the hinterland, too, are demanding—and receiving—huge pay increases. China is no longer a place where manufacturers can go to find ultra-cheap hands (see article). Other countries, such as Vietnam, are much cheaper. What will this mean for China and the world?” I quote this because I wonder if anything has changed because I think we are just dealing with China maturing.