Chinese Conundrum

Aussiejeff · 18 June 2010

Welcome to the world of free market capitalism, Mr Chairman!

June 18 (Bloomberg) -- Workers at a Toyota Motor Corp. affiliate’s parts factory in China went on strike demanding higher pay, partially shutting the plant, while Honda Motor Co. tried to stop employees at a supplier from resuming a walkout.

Full story .. http://www.bloomberg.com/apps/news?pid=20601087&sid=aSEPxMc0PoBk&pos=5

This follows on from the Foxconn factory worker suicides and subsequent promised big pay rises. Methinks many more disruptions will hit China's manufacturing sector as more & more workers realise they are earning slave wages compared to Western workers. This is the tip of a very big iceberg!

In the end, this will not be good in coming years for the world's importers of Chinese products, as prices of Chinese goods will inevitably have to rise significantly to cover increasing wage costs.

IMO.

disarray · 19 June 2010

industry moves to wherever is the cheapest labour. as chindia modernises, the native workers move middle class and demand a better lifestyle, which will drive up wages and conditions, so the companies will have to move somewhere cheaper to maximise profits (read: exploit local labour in return for infrastructure investment). this is globalised capitalism 101, you know how it all pans out.

i've been outsourced to india twice. then i heard the indians were being outsourced to the philippines. so whoever puts up a base level infrastructure and supplies loads of semi-english-literate low wage expecting peons will get the next 5 year contract.

there's still lots of china left to modernise (hello 1.2 billion people) and after that there's piles of people in southeast asia to tap (vietnam and philippines are already nibbling), then if anyone can find 5 minutes of peace in africa that will be next. money is amoral. commerce is global. this is the system. we take our profit where we can

Aussiejeff · 19 June 2010

disarray said:
industry moves to wherever is the cheapest labour. as chindia modernises, the native workers move middle class and demand a better lifestyle, which will drive up wages and conditions, so the companies will have to move somewhere cheaper to maximise profits (read: exploit local labour in return for infrastructure investment). this is globalised capitalism 101, you know how it all pans out.

i've been outsourced to india twice. then i heard the indians were being outsourced to the philippines. so whoever puts up a base level infrastructure and supplies loads of semi-english-literate low wage expecting peons will get the next 5 year contract.

there's still lots of china left to modernise (hello 1.2 billion people) and after that there's piles of people in southeast asia to tap (vietnam and philippines are already nibbling), then if anyone can find 5 minutes of peace in africa that will be next. money is amoral. commerce is global. this is the system. we take our profit where we can

Sounds like a system in total disarray..

.. and once most on the planet have scrambled to achieve the desired 2xcar, 3x3D big screen, 2xMcMansion, 1x1.5children, comfortably wealthy, sex-in-the-city, US middle-class lifestyle - wot then?

Ahhhh. I get it.

**NIRVANA!!**

I can't wait.

Neither can a few Billion other peeons..

Wysiwyg · 19 June 2010

Aussiejeff said:
.. and once most on the planet have scrambled to achieve the desired 2xcar, 3x3D big screen, 2xMcMansion, 1x1.5children, comfortably wealthy, sex-in-the-city, US middle-class lifestyle - wot then?

Ahhhh. I get it.

**NIRVANA!!**

I can't wait.

Neither can a few Billion other peeons..

And some Mutant Ninja Turtle had the gall to ask "what is the meaning of life". Like if it isn't obvious, gee.

wildkactus · 19 June 2010

There is a few companies up here that are already moving from china to other Asian countries, namely veitnam / malaysia. as china is becoming to expensive.
it's a funny thing globalisation, the dollar always rules no matter what.

happy trading

Chinese Conundrum

Aussiejeff

disarray

Aussiejeff

Wysiwyg

Everyone wants money

wildkactus

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