Sure we're looking at India - but not as an alternative, more as an additional opportunity with the added benefit of not having all our eggs, etc.

We're by no means a large company in China but it wasn't really that difficult to do. I get bewildered by those small companies who complain that they're too small to implement such changes. Well, to them I say - try doing it for 100 employees and then also think about those companies that employ thousands. Doing it for a few should be simple and straightforward and it's no where near as difficult - or costly - as you might. Spend less time in the bars and brothels and devote sometime to considering those that work for you. Of course, if you don't like it and don't want to comply with Chinese laws, then don't. You have alternatives - like a one way ticket back to where you don't want to go cause you can't make any money.

Apols for the tirade (oh, I could go on) - it's a hot stick day here in NJ.

That having been said, down here in Dongguan there's several other factors affecting the exodus, ranging from local government policy to tax breaks running out, to labor shortages to rising labor costs. The Labor Law is a good excuse, but I think is just the scapegoat.

I've been running a series of posts on my blog http://www.chinafubar.com regarding "Where Next" and an as of yet unmentioned possibility on my blog is out of the Pearl River Delta, to inland locations, which I feel is more likely in the long run.

I think you have misunderstood my post. I am actually a huge booster/fan of Vietnam and we have recommended it to many a client and then helped them locate there. But, and I am sure you will agree with me on this, it is not the best country for every sort of company and, in most cases, it does not make sense to uproot an already established factory and essentially relocate it to Vietnam. Companies that are making money just don't tend to do that sort of thing.

Oh, and what point do you think I was missing?

joello is right, even complying 100% with this labor law isn't going to save you from the problems with this law. if it was as simple as being compliant i could easily agree with you. but i have been sued by one worker who received a 120,000 rmb settlement that was totally unjust and the rest of the workers ran to file their suits too. i have now closed the factory. i always paid my workers above average salary, never overworked them and was more than 100% compliant. but as anyone who has a shred of experience in china knows, it is impossible to do everything right all of the time. try as you might to be complaint, someone somewhere forgot to do something and you will hang for it.

come back after you have been sued once or twice and lost a couple in court. after you lose your cherry on that one you will fully understand.

for the record, i hope you never have to experience it.

jim