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China Manufacturing - Too Expensive?

by Robert Barr on June 18, 2008 · 5 comments

in Rants

Alright boys and girls, hold onto your knickers, this is going to be fun. I just finished an article by KEITH BRADSHER who says manufacturing in China is getting too expensive. Don’t get me wrong, it’s a great article, but WTF are we talking about here? Seems as if China is losing manufacturing jobs to other, poorer countries because of China’s rising wages.

Now, I don’t want to go off on a rant here, but how in the hell has China already gotten too expensive to manufacture goods? I mean everything from plastic cup manufacturing to building jet engines has gotten done in China, a country with an average income of $160 dollars. Forget the whole Wal-Mart bad, unions good thing, that’s old and played out. The question I want answered is this.

When do we run out of poor, uneducated people to exploit?

I mean really, there can’t be that many countries left that would be willing to subjugate their people and allow the messes that we have created in China. The pollution, the sub-standard living conditions, the total lack of respect for an entire population. I guess there are still countries in Southeast Asia to exploit, and after we rape those people we can all pile on the African continent…..as long as they haven’t all died from AIDS or genocide. Besides, India got too expensive years ago, I mean there they can actually afford cars an roads, can you believe that? Cars and roads, bastards!

But here is the difference between China and India. China allowed foreign companies to come in and have their way with their people. It was China’s way of keeping a strangle hold on their people while letting someone else do it for them. It was a masterstroke in a Fascist, Communist loving, Dr. Evil kind of way. In fact, it’s worked so well, China doesn’t know what to do with all the friggin’ cash they have, after already buying most of the United States mind you!

India, well they are a different story. Indians built up India. Companies like Tata, Wipro,  and Infosys Technologies have taken their country by the hand and helped it out of the shadow of the East India Company. I just wish they would stop thinking it’s cool to kill their daughters, but again, that’s a different blog.

They say the countries that make up BRIC (Brazil, Russia, India, & China) will be the major economies in this century, that they will be the driving force behind a new world order of redistributing the wealth, taking the poor and forgotten into the middle class by building schools, providing medical care, and creating a better way of life. Well to that I say Amen. Because contrary to what many people say, trade stops wars.

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{ 5 comments… read them below or add one }

1 Frank 06.18.08 at 9:50 pm

I’m curious if you have:
1) ever been outside of whatever country you are from (I hope it’s not America, but fear it is)?
2) Ever been to China, or anywhere else in Asia, or any other industrialized just about third world country?
3) ever participated in any way (except as a consumer) in international trade?

2 admin 06.18.08 at 10:03 pm

Hi Frank,

Thanks for posting! To answer your questions:

1. Yes I am from the U.S.
2. Yes, I have set up call centers in India as well as manufacturing facilities in China and Mexico.
3. See answer above

And I ask you why?

3 Andy T 06.23.08 at 2:14 am

All you said above is just the facts we already know. May be news to people have never been to China.
The labour cost in China is getting higher, due to the new laber law [labour health and safety protection, lay off compensation] pushed out recently - higher wages or cost of labour.
P.S. Middle and western part of China still very poor.

4 admin 06.23.08 at 8:42 am

Hi Andy,

I don’t disagree, the labor costs in China might be getting higher, but they still don’t compare to western labor costs. Unskilled labor pays out $7 an hour, while a union plumber is going to cost you $50 an hour. Unless labor costs in China have climbed to those levels, it’s still cheaper to produce in China don’t you agree?

5 Andy T 06.23.08 at 7:42 pm

Don’t forget, the tendering of production contract is a competition with all the companies in globe. Increase in labour cost not high enough to move back to developed country but enough to move to other countries. The contract can move to India, Thailand, Malaysia, Africa or South America.
As far as I know, a lot of manufacture factory shut down due to the new labour protection policy [I should say the enforcement, law (most of the regulations) was there but not enforced before].
The profit margin of the factory is much lower than you expected. Most of the profit go to the big international corporation only [eg. Walmart, Canadian Tire].

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