Hefei Expat - China

Please login or register.

Login with username, password and session length
Advanced search  

News:

HFConnect
The Events, News and Sports APP for visitors in Hefei.

Pages: [1]   Go Down

Author Topic: another reason for staying...  (Read 8345 times)

x0vash0x

  • Guest
Re: another reason for staying...
« Reply #1 on: August 07, 2013, 06:20:03 am »

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.
Logged

Aussie Mike

  • +86 138 667 39353
  • Administrator
  • Long Term Member
  • *****
  • Posts: 1188
  • Love Life, Live Life, Be Happy!
    • View Profile
    • Personal Profile
Re: another reason for staying...
« Reply #2 on: August 07, 2013, 01:33:19 pm »

Costs will go up as will the profit margins, when buy price is not better than compared quality, sales will decline.
Logged
My Focus is Australia China Import Export People and Products

rgeczi

  • Guest
Re: another reason for staying...
« Reply #3 on: August 08, 2013, 01:06:22 am »

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.

Logged

Aussie Mike

  • +86 138 667 39353
  • Administrator
  • Long Term Member
  • *****
  • Posts: 1188
  • Love Life, Live Life, Be Happy!
    • View Profile
    • Personal Profile
Re: another reason for staying...
« Reply #4 on: August 09, 2013, 08:28:20 am »

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.
Logged
My Focus is Australia China Import Export People and Products
Pages: [1]   Go Up