What China Manufacturers are Afraid Of
China is becoming more and more efficient as market-oriented reforms have lowered business costs. Banking efficiency is improving. Finanical and other economic reforms are following.
China’s enterprises are getting more qualified managers. In short they are becoming better companies as they learn how to make their way in the international scene.
So, then what are China and her manufacturers afraid of?
Doesn’t China provide cheap labor costs? Isn’t China the master at cutting costs?
Who’s China afraid of?
India and Vietnam come to mind. Both countries are developing their own work forces and are poised to undercut China’s labor costs.
If China doesn’t provide products cheaply enough, there are two neighboring countries ready to step in.
So, is China afraid? Should they be afraid?
What do you think?
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01/09/2006
我认为，其实中国现在最需要担心就是，随着上世纪七十年代末以来，计划生育政策的广泛推开，在眼下这个阶段，中国的适龄劳动力已经出现了不小的断层，而这对于中国以劳动力价格低廉为优势的大量企业，特别是出口企业会相当不利。
05/09/2006
India is a could very well take China’s place for cheap labor, it seems most engineers are coming from India. When you call tech support you end up talking to someone from India. So China may loose their claim to cheap labor.
15/02/2007
I think it’s a good challenge for China. China would have to become more efficient at manufacturing while buying time to develop its high-tech sector. There is one growing trend in China which is really encouraging, a lot of high schools are being converted into technical colleges where students can specialise early in their educations. This should produce a whole army of capable workers to satisfy the domestic market in the coming years.