Wednesday, October 20, 2010

Factories in China move inland

http://www.bloomberg.com/news/2010-10-19/china-s-factories-turn-to-yangtze-river-to-escape-coastal-wage-inflation.html

Mainly looking for cheaper labor. I suspect wages will rise much faster inland than they did in the coastal area, as the coastal area could bring in low-wage workers from the inland provinces.

Its not going to be very fun when prices keep going up in China, but US customers keep pressing for lower prices. Sure, the factories can move even further inland, but eventually they will run out of "cheap" Chinese labor.

Next stop: Vietnam? Myanmar? Bangladesh? Ethiopia?