Apr 03 2012
For manufacturers in China, the most effective hedge against rising costs is attracting, developing and retaining talent. In this case, the most effective is also the most ethically correct. This from the Huffington Post: As I’ve been saying (over and over again), an incremental upsurge in labor rates is not cause for China manufacturers to flee the …
Feb 02 2012
Here’s an example of how industrial leadership seems to be working here in China, and why some form of it should be considered in target industries in the USA. This article from Global Sources (h/t Sinoland) shows how Guangdong province targeted an industry (in this case, LEDs) and invested in manufacturing capacity and infrastructure. The result: …
Jul 25 2010
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 …
Jul 21 2010
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, …
Jul 16 2010
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, …
Jul 11 2010
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 …
Nov 23 2009
In my last post I bitch and moan about US politicians and their bitching and moaning. But really, look at China’s pro-active stance on turning the requirement for clean energy into value-added economic activity. On Nov. 20th, the WSJ online posted an article China’s CIC to Invest in 2 Clean-Energy Firms. Subscription is required (I’m …
Nov 21 2009
American politicians and pundits should stop complaining about successful Chinese competition for greentech and other “good” jobs. Rather than complain, they should get off their soapboxes and work towards incentivizing and encouraging US industry. They should be asking following question: ”The Chinese have their plan, what’s ours?” This article from yesterday’s Industry Week cites a …
Nov 07 2009
According to a CNN report, NAFTA, proximity to the U.S. market, and lower costs (largely the results of inverse currency fluctuations of the peso and yuan) have tipped the scales in favor of Mexico (and against China) as the new manufacturing destination of choice for U.S.- bound products.
Nov 07 2009
There is talk that the Beijing and and Guangdong governments are starting to play hard-to-get with foreign investors, downplaying their importance in upgrading China’s manufacturing, R&D and local market offerings. However one report in The Japan Times indicates that Dongguan, at least, is still welcoming foreign investment. A vice mayor of the Chinese industrial city …
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