Foreign media said China began to bid farewell to the "world factory"

According to news from the German International News Agency, China has always been called a "world factory." International companies have established production bases in China to seek lower costs and higher profits. However, as the wage level continues to rise, the appreciation of the renminbi is on the rise and China's bid to bid farewell to the “world factory”, which is not a very glorious title, may be just around the corner.

After the Spring Festival this year, when millions of migrant workers did not return to their places of employment in the South, many foreign companies saw a turning point. Due to rising raw material prices, dissatisfaction with the workers' protest mood, and the reduction in export revenue from the appreciation of the renminbi, these companies have already faced numerous crises. Although employers have raised wages, the problem of shortage of labor has still not been solved because many workers are now reluctant to engage in monotonous mechanical operations. In the past, it was precisely because of the large number of workers engaged in such labor that China had a "world." The title of the factory.

According to the article, many large and small export companies have migrated to the mainland provinces where labor is cheaper, and they have even simply moved to other countries. For observers, this is a clear signal that China is coming to an end as a center of cheap production around the world.

The Chinese experts at Credit Suisse in Switzerland described this shift as a "historical turning point" for the Chinese economy and the entire world. Because China's long-standing role - the inflation of the world economy is kept at a low level - I am afraid that it will soon be over. In fact, the world has already sensed the increase in production costs in China. For example, American apparel companies have re-raised the prices of shirts and other clothing, and in the past decade, apparel prices have dropped by an average of 10%.

A report from Credit Suisse Bank pointed out: "China's competitiveness in the labor force must be really shattered. I'm afraid we will have to wait ten years, but we have already seen its beginning." The report predicts that in the future 3 In five years, the wages of some 150 million migrant workers in China will increase by 20% to 30% each year.

One of the reasons for this phenomenon is that China’s traditional advantage - the growing army of cheap labor is shrinking. Economists believe that this is the result of the rapid aging of the population following China's 40-year family planning policy. Stephen Green, an economist at Standard Chartered Bank, wrote in a report titled "Troubleshooting: 25 Million Workers" that China's economic growth "production jobs" are faster than the "new labor force." Birth" speed.

In addition, China’s rapid economic growth has also increased income levels, creating more job opportunities in inland poor provinces. As a result, fewer and fewer farmers have left their homes to work in affluent coastal cities. Stanley Lau, deputy chairman of the Federation of Hong Kong Industries, said that in February of this year, about 30% to 40% of the migrant workers originally employed in the Pearl River Delta Region did not go back to work after the Spring Festival. Normally, this ratio should be between 10% and 15%. Earlier, the government agency in Guangdong Province, a centre for low-cost production in China, raised the minimum wage level of workers by up to 20% to avoid frequent incidents such as last year’s Foxconn staff suicide and the strikes of Honda and Toyota workers. Big sensation.

The article stated that many companies have paid higher wages in order to retain workers, but they still cannot recruit suitable personnel. Taking the above mentioned American boss Happ as an example, he has about 500 employees and his monthly income is around 1800 to 2000 yuan, which is already higher than the minimum wage (1300 yuan) that has been implemented since early March of this year. A hundred dollars, but he still has 100 vacancies there. This leads to the extension of his delivery period. Harp considers relocating the factory to other parts of China, but he estimates that it can only support two or three years because the wages and prices in the Mainland will gradually catch up with the coastal areas.

For those companies that cannot recruit workers, strengthening production automation may be a suitable way out. In the past, some processes may be cheaper for manual operation, but now it is more cost-effective to use robots or other automation equipment.

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