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This was the case some 10 years ago, but Chinese labor is no longer cheap. The wealth brought in by making China the factory of the world drove the income level
by mach1ne 5y ago
This was the case some 10 years ago, but Chinese labor is no longer cheap. The wealth brought in by making China the factory of the world drove the income level of its middle class up and now there are few advantages in manufacturing your products in China.
Western manufacturers are constantly pulling their factories back from China, many having gained an ultimate net loss from moving in in the 90s and now relocating again.
- toss1 5y agoYes, they have made a net loss, and meanwhile transferred an insane amount of technology to China. But those managers got their bonuses and are long-gone... And sure Chinese labor isn't as cheap, they've moved up the value chain some, but it is still cheap enough compared to US wages to make items and ship them here - particularly with China's lax environmental and labor laws. The relocations to even cheaper labor-rate counties are still an improvement, as at least they aren't creating all levels of strategic disadvantage...