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Thread: Why The END Of Cheap Chinese Labor Is Near

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    Default Why The END Of Cheap Chinese Labor Is Near

    http://www.huffingtonpost.com/2010/0...30.html#s96150


    Why The END Of Cheap Chinese Labor Is Near

    Foxconn Suicides
    After the suicide deaths of ten workers (and three attempted suicides), Foxconn, the world's largest contract maker of electronics and a large producer of Apple products, said that within three months it would double the salaries of many of its assembly line workers, reports the New York Times.

    China's State-Owned Media Speaks Out
    Long considered the mouthpiece of the Chinese Communist Party, China's state-owned media has called for a "new proletariat revolution," says the Business Insider. In China's state-owned newspaper, the People's Daily, columnist Li Hong writes:

    Higher Wages At Hyundai
    When 1,000 workers at a Hyundai parts factory in Beijing went on strike on May 28th, management quickly promised them a "15 percent pay rise soon and a further 10 percent rise in July," reported the Global Times, a daily Chinese newspaper. The next day the workers returned to their jobs.

    Honda Strikes
    Although Honda offered its Chinese workers a 24 to 32 percent pay increase, and a Honda spokesman in China previously said operations had resumed, workers have staged another walkout at a Honda parts factory in southern China, reported the Times.

    Proliferation of Social Networks
    Workers were able to organize the Honda strike by using social networking tools like Internet chatrooms and a popular Chinese instant messaging service called QQ, says a Reuters report.

    Beijing's Minimum Wage
    According to the Global Times, on June 6th the Beijing municipal government announced it would raise its minimum wage 20 percent to about $140 a month. Thirty provinces or municipalities have raised or will raise their minimum wage this year, the paper reports.

    China's "One-Child Policy"
    China's "one-child policy" has reduced the birth rate, and resulted in a labor shortage that is pushing up wages. The country's under-40 workforce has fallen by 20%, according to the Financial Times, and economists predict that the number of Chinese between the ages of 15 and 24 will likely drop by one-third in the next 12 years. Fewer workers mean more collective bargaining power.

    China's Economic Stimulus Spending
    Also contributing to the labor shortage is the Chinese government's half-trillion dollar stimulus program that has created jobs in the rural areas of China. Millions of migrant workers have left the factories in China's coastal cities, and returned home to find jobs waiting for them in China's rural interior, according to a New York Times report.

    The 2008 Labor Contract Law
    Enacted in 2008, China's labor contract law requires employers to give their workers written contracts. It also limits overtime, requires one month's severance pay for each year worked for laid-off employees and sets minimum wages, according to the New York Times.

    Foreign-Invested Capital
    As the Financial Times points out, China's supply of cheap labor was "a means, not an end," and it appears to be coming to an end. Once used to lure foreign investment, low wages don't benefit China's domestic economy like they once did. Twenty years ago, foreign multinationals that wanted to take advantage of the country's cheap labor market had to enter joint ventures with the Chinese government. These days, foreign companies are able to own 100% of the capital they invest in in China.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    This nonsense is why unions came to be. Nice to see they are being used in a place that could use them for actual good.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    So the drive for populist equality continues. Soon China will export jobs to even poorer third-world countries. And the most of those are in other parts of Asia and in Africa. My predictions are holding up. In a hundred years or less China will have all of our problems, and even more.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    Quote Originally Posted by threlayer View Post
    So the drive for populist equality continues. Soon China will export jobs to even poorer third-world countries. And the most of those are in other parts of Asia and in Africa. My predictions are holding up. In a hundred years or less China will have all of our problems, and even more.
    That would NOT be anything new. China has been outsourcing to cheaper labor countries like Vietnam and Cambodia for years.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    ^^^ I have to agree that there is a certain element of international business that will always seek out the greatest 'productivity' at the lowest cost ... which for unskilled labor requirements is already shifting from China / India to Vietnam / Singapore. It also 'helps' when extremely low worker safety costs, environmental costs, etc. go hand in hand with the very low unskilled labor costs.

    On one level, Huff Post Americans condemn such practices as 'economic colonialism' that involves the irresponsible pursuit of maximum profits. On another level, there is absolutely no denying that the current standard of living in America ... and particularly the standard of living of so-called 'poor' Americans ... can be directly attributed to the availability of extremely low priced food products, manufactured goods, consumer goods etc. that Asia's low unskilled labor costs / minimal worker safety costs / non-existant environmental costs make possible. This leads to a high degree of hypocrisy ... with the latest 'poster child' probably being Apple Computer !

    China is well on its way to creating a 'self-contained' economy where its own industries are capable of producing most of the products that its own consumers require ... from cars to appliances to computers. And as China's labor costs, worker safety costs, environmental compliance costs etc. rise in response to popular demand, Chinese companies will increasingly look to the same 'economic colonialism' that US, European and Japanese industries already pursue.

    However, it does matter to keep the Chinese developments in perspective i.e. that an increase to US$250 per month for Chinese wage rates still underprices the US minimum wage by a 5:1 ratio ( not including higher US worker safety, environmental compliance, or mandated benefit costs ) !!!

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    ^^ I agree with this. Except that the 'colonialism' is really exploitation of workers by businesses. I have no doubt that Chinese and other workers would rather by paid more fairly, be allowed time for training, have worker safety measures, and fewere business-caused environmental problems, much as any other people would. Unregulated, profit-maximizing companies will ALWAYS exploit to the maximum they can sustain. But the Chinese lassiz faire government does not care to give the workers any help in getting that from their (slave-)masters. More advanced countries have gone beyond that. So it costs a bit more to live in advanced countries, and so they are finding that their own unskilled jobs and some skilled ones are disappearing. This has been going on for centuries. It's just that the rate of change is occurring faster than people can complete retraining and find new jobs. To the extent that their governments allow that, their governments are doing a disservice to the citizens and to their country. Globablization can only proceed so fast without major economic and social disruptions. Government cannot allow itself be so manipulated by profit-maximizing big businesses. Other social values need to factored in, as needed, by law. This is my point.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    Government cannot allow itself be so manipulated by profit-maximizing big businesses.
    don't forget the fact that it was the UNIONS who have played the major role in drumming up US gov't assistance to SELECT big unionized businesses ( outside the financial sector ) !


    Other social values need to factored in, as needed, by law. This is my point.
    You're not alone in advocating this position. But realistically speaking, if new law were to be established to deal with dirt cheap imported products from countries with 'slave labor' wage rates, extremely low worker safety requirements / costs, extremely low environmental compliance requirements / costs, etc. it would probably cut the standard of living of the lower earning 50% of Americans to the point where they will be rioting in the street.

    As hard as mainstream media tries not to discuss the subject, the availability of dirt cheap Asian vegetables, Korean cars, Chinese appliances etc. has been subsidizing the standard of living of the 'lower 50%' of Americans for the past 15 years. If your proposed new law adds back the cost of a 'minimum wage', the cost of reasonable worker safety, the cost of reasonable environmental compliance etc., all of a sudden the prices for all of these items would increase by 2:1 or more ! Without rising paychecks / social welfare benefit checks to offset those rising prices, this would create a huge reduction in the US standard of living.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    Quote Originally Posted by Melonie View Post
    ^^^ I have to agree that there is a certain element of international business that will always seek out the greatest 'productivity' at the lowest cost ... which for unskilled labor requirements is already shifting from China / India to Vietnam / Singapore. It also 'helps' when extremely low worker safety costs, environmental costs, etc. go hand in hand with the very low unskilled labor costs.
    Singapore?! Singapore's wages aren't much lower than wages in the US.

    http://en.wikipedia.org/wiki/Demogra...monthly_income

    As of 2000, the average monthly household income in Singapore was 4,943 Singapore dollars, which is about $3,500 US dollars today.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    the chinese workers killed themselves for the sweet sweet insurance payout. anyway their wages are so high that the factory's work is being partially offshored to cheaper locales.

    http://www.engadget.com/2010/06/09/f...production-to/

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    You're not alone in advocating this position. But realistically speaking, if new law were to be established to deal with dirt cheap imported products from countries with 'slave labor' wage rates......it would probably cut the standard of living of the lower earning 50% of Americans to the point where they will be rioting in the street.

    As hard as mainstream media tries not to discuss the subject, the availability [the above] has been subsidizing the standard of living of the 'lower 50%' of Americans for the past 15 years.......Without rising paychecks / social welfare benefit checks to offset those rising prices, this would create a huge reduction in the US standard of living.
    At least those dissatisfied Americans would mostly have decent-paying jobs to keep them off the streets during working hours. The rioting would only have taken place if they were deprived of what they already have. If this had been done all along, they wouldn't be missing their under-priced toys, cheap-crap knick-knacks, and ego-boosting but vacuous luxury goods. I will say some things for under-priced import alternatives such as autos; it has awakened the sleeping Detroit giants to the point where they are now serious about competing and are building much better vehicles. Further many American-produced goods are now much better designed and produced than corporations ever thought was needed before, even in the face of the much better but higher-priced European goods available before the Asian product flooding began.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Why The END Of Cheap Chinese Labor Is Near

    The Detroit Auto Giants are not so giant anymore. Having lived in Michigan, I can feel pretty fair in saying automobiles are well on their way to being a niche industry in the United States. Like every other fucking industry in this country.

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