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Do you guys actually KNOW anyone who works in China? I do. I know 3 software engineers, 2 entrepreneurs, and 1 retail person. The software engineers make over $100k each. The retail person makes about what a retail person here makes (mid $20s after taxes). You don’t even want to know what the entrepreneur couple makes. I’ll give you a clue: they bought six houses in Australia this year and one in LA. Sadly, I don’t know them well enough to get in on that gravy train.)
China will keep a portion of its population making moderately cheap labor goods while differentiating a segment of its population into high tech. They will be competing with both Western Europe/America/Japan and India/Indonesia at the same time. You can do that when you have 1 billion+ people.
Manufacturing jobs won't come back to America. They will just be shipped from China to someplace else in the world, most likely in South Asia or Sub-Saharan Africa, where wages will still be dirt cheap.
They pay $100 a month and may go to $117 and that is going to have China lose an advantage how again?
With the cost of exporting raw goods to China, and the cost of importing goods then back to the US, not to mention the fact that Chinese workers are far less productive than American workers, it comes down to more than just wage. I have read this in at least 5 places now that the advantage of China will be gone within 5 years.
Manufacturing jobs won't come back to America. They will just be shipped from China to someplace else in the world, most likely in South Asia or Sub-Saharan Africa, where wages will still be dirt cheap.
According to the link I left from the Australian newspaper wages will rise faster in those countries because they lack the huge cheap surplus labor that attracted investors to China that made Chinese goods cheaper.
Here's the breakdown:
Quote:
But the wage gap between China and other developing countries will shrink, said Mr Fung, echoing views shared by Boston Consulting Group, because "China was the thing that kept the price low," he says. "China was the benchmark. With the China price rising, everyone else wants to raise prices."
As factories relocate to other countries, local wages will rise faster than they did in China because the potential pools of surplus labour are smaller. In addition, because no other country can replicate the massive scale of China, logistics will become a larger part of costs as companies are forced to slice up their manufacturing over several countries, analysts say.
"Things will be more expensive and people will buy less," Mr Fung warns.
That means that the West will have to adopt new consumption trends.
Isn't this good news for America in the coming future? With China loosing it's advantage as a low wage country then maybe more manufacturing jobs will stay in America.
I don't know where the report is from. But I can exactly tell you the increased percentage point is not correct among managers and skilled workers as I am a Chinese manager and also know about the status of lots of others managers in China. Maybe the wage among them was increased by 8%-20% annually. So, actually, Chinese wages is not increased so fast as you have thought and still b e in a low level compared to you American wages.
Do you guys actually KNOW anyone who works in China? I do. I know 3 software engineers, 2 entrepreneurs, and 1 retail person. The software engineers make over $100k each. The retail person makes about what a retail person here makes (mid $20s after taxes). You don’t even want to know what the entrepreneur couple makes. I’ll give you a clue: they bought six houses in Australia this year and one in LA. Sadly, I don’t know them well enough to get in on that gravy train.)
China will keep a portion of its population making moderately cheap labor goods while differentiating a segment of its population into high tech. They will be competing with both Western Europe/America/Japan and India/Indonesia at the same time. You can do that when you have 1 billion+ people.
There are cetain elite employed by the red army that would get mroe power, control and money depending on their value to the hive. Makes sense to me.
With the cost of exporting raw goods to China, and the cost of importing goods then back to the US, not to mention the fact that Chinese workers are far less productive than American workers, it comes down to more than just wage. I have read this in at least 5 places now that the advantage of China will be gone within 5 years.
No, China just buys raw materials cheap, they have slave labor and will gladly sell your family lead painted toys.
They work many hours.
They work three shifts. Two for the companies that order goods through them like Nike, then they do a third shift without the Nike labeled and sell the shoes on the black market. That's China.
I know several doing business there, a liberal have billionaire who loves their communists and rides down there with them and there was a Fulbright Scholar from China I talked a Semester with over at USC.
They already polluted half their drinking water.
They aborted most of the girls and have many men for an army.
I see lots of trouble in the future regarding them.
if the Chinese gov can't control what the factories put into babies milk or what they paint their toys with do we really think they can control what the factory bosses pay their workers??
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