Monthly Archive: July 2010

Jul 25 2010

PRC tells foreign manufactures “the party’s over– just kidding!”

Just because I in my infinite wisdom,  say rising labor costs are no big deal, and that China is still competitive for lots of manufacturing, doesn’t mean everyone agrees with me.  In fact, the PRC government, via it’s China Daily article “‘Made in China’ – but for how long“, ask the rhetorical question: How long …

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Jul 21 2010

Labor rates rising, but labor is still “cheap” if you get more value.

In a response to the much blogged and tweeted Economist article “Is the era of cheap Chinese labour over?“,  Economist guest contributor Tyler Cowen answers the question intelligently in his response “The important thing is Chinese productivity is rising“. Anyway, the money quote comes at the end of the article: In the question stated above, …

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Jul 16 2010

China Labor: Yes, The Times They Are A Changing but no, the sky is NOT falling.

There was some balanced perspective  on the China labor situation from a July 1 Reuters article. Just wanted to share some of the main points: Yes, the fact that there were strikes is significant. But no, the actual effect of those strikes has not been significant because of their limited scope.   (It is, however, …

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Jul 11 2010

Pearl River Delta manufacturing: the reports of its death are greatly exaggerated

The SCMP shows that chasing cheap labor may be too expensive A pair of recent articles in the South China Morning Post offer some more perspective on the much-predicted exodus of manufacturing from the Pearl River Delta and why, for the most part, it just ain’t gonna happen. (a paid subscription is required to access …

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Jul 09 2010

PRD Labor Costs Rising: Run Away, Run Away!!! Not so fast.

Once again, the sky in the PRD seems to be falling.  The breathless reporting about labor issues in China  once again lays bare the western media’s propensity for myopia and mis-focus when it comes to reporting on China.  But this time I can’t just blame the media… lots of people who actually manage facilities here …

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