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another reason for staying...



The issue is that China needs to consume what it produces rather than just produce it. It would be another thing altogether if China could produce and consumer, but currently it mainly just produces. However, I suspect this will change in the next decade as the next five year plan specifically calls for China to increase its consumption.

Aussie Mike:
Costs will go up as will the profit margins, when buy price is not better than compared quality, sales will decline.

The ship is slowly sailing away.  China is not the manufacturer paradise as it once was, which is why quite a few companies, from large to small, are either moving back to their home countries (US for example), or to lower cost places (Vietnam, and so on).

The Gov. here knows this, which is why they are stressing more in-house consumption of goods.  This is what happens when your currency rises as high as China's has these past few years, and labour cost increases to add to the fire.

Aussie Mike:
Have you noticed how many companies establish factories in Mexico and South American and even European countries during the last 10 years? It's staggering. I hear it's cheaper for companies to close a Shanghai factory to open one in Poland. However, Hefei is a place to establish a factory in China, other cities like Shanghai, ShenZheng, Nanjing, etc. are too expensive now.


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