Difference between revisions of "Rising costs of labour in China"

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==Enablers==
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*Shortage of highly skilled labour
**Knock on effect to lower wage levels
*Minimum wage legislation
**Employers are also reguired to sign long-ter contracts and pay social benefits
*Already high non-wage labour costs
**Includes retirement funds, sickness, materiny, health insurance, workplace injury, family allowance, payroll taxes, etc.
*Inflation and inflationary pressures
**Eroding worker purchasing power
*Increase in foreign direct investment


==Inhibitors==
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*Recession
*Decrease in national GDP/ GDP growth rate


==Paradigms==
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*Decrease in attractiveness of China as a location for large-scale manufacturing investment
**Shift to cheaper sites within Asia Pacific such as Thailand, the Philippines or India
*Increasing importance of Total Cost of Ownership
**More difficult for companies to successfully determine sourcing costs
*The world's largest economy feeling the pains of inflation
*Western countries such as the US will no longer be able to count on cheap Chinese imports to help control inflation


==Timing==
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{|
|1979
|Opening of Chinese economy to foreign investment
|-
|2004
|First reported labour shortages
|-
|2008
|Government enacts minimum wage legislation
|}


==Web Resources==
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#[http://www.euromonitor.com/Special_Report_Chinas_rising_labour_costs "Special Report: China's rising labour costs", Media Eghbal]
#[http://www.techforecasters.com/weblog/archives/china-labor-prices-are-rising-what-it-means-for-outsourcing/ "China labor prices are rising - what it means for outsourcing", Bill Roberts]
#[http://english.peopledaily.com.cn/200507/06/eng20050706_194289.html "Experts differ on China's rising labor costs", People's Daily Online]
#[http://www.businessweek.com/magazine/content/06_13/b3977049.htm "How Rising Wages Are Changing The Game In China", Business Week]
#[http://neweconomist.blogs.com/new_economist/2006/03/chinas_labour_p.html "China's labour pains: rising wages", New Economist]
#[http://www.nytimes.com/2008/01/31/business/worldbusiness/31iht-inflate.1.9639509.html "Costs rising, China to export inflation", New York Times]


==Revision History==
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{|
|September
|2009
|Created by [[User:Gerrit_ledderhof|Gerrit Ledderhof]]
|}

Latest revision as of 03:27, 2 June 2010

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