04 May '12, 3pm

The End Of Cheap China By Shaun Rein – An Insightful Look Into China From The Inside Korea Times

The End Of Cheap China By Shaun Rein – An Insightful Look Into China From The Inside Korea Times

To examine the economic trends, Rein visited Laura furniture factory in Shanghai. There are 10,000 workers on the working floor and the environment appears decent. Because of the high demand in Chinese skilled workers, the factory (and many others) is facing the challenge of keeping the workers. This drives up workers’ salary and in turn drives up business cost. The factory could pass the cost back to American consumers and Laura may have to consider moving the factory to countries such as Vietnam or Indonesia in order to cut cost. However, this is not desirable because the skill of Chinese workers and infrastructure of China cannot be met by these countries today. What should Laura do? Rein’s advice to the factory’s manager is that instead of exporting all the furniture to America, create a market share in China. Leverage on China’s domestic market to sustain or even grow...

Full article: http://www.wilfridwong.com/2012/05/04/the-end-of-cheap-ch...

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