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End of low wages in China GOOD for US??

SHANGHAI – Factory workers demanding better wages and working conditions are hastening the eventual end of an era of cheap costs that helped make southern coastal China the world's factory floor.

A series of strikes over the past two months have been a rude wakeup call for the many foreign companies that depend on China's low costs to compete overseas, from makers of Christmas trees to manufacturers of gadgets like the iPad.

Where once low-tech factories and scant wages were welcomed in a China eager to escape isolation and poverty, workers are now demanding a bigger share of the profits. The government, meanwhile, is pushing foreign companies to make investments in areas it believes will create greater wealth for China, like high technology.

http://news.yahoo.com/s/ap/20100708/ap_on_bi_ge/as_china_cheap_no_more

 
sweet-a-kins

Asked by sweet-a-kins at 4:17 PM on Jul. 8, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
This question is closed.
Answers (5)
  • Of course everyone knew this would happen, especially when you consider the large numbers of young Chinese workers who are no longer in the dark about world events. Good bye cheap stuff



    COs will just move to an even less developed country in search of cheap labor. Manufactoring/production jobs will not be returning to the US anytime soon, IMO.
    Sisteract

    Answer by Sisteract at 4:50 PM on Jul. 8, 2010

  • It was bound to happen. Communism and capitalism don't blend well.
    Carpy

    Answer by Carpy at 4:41 PM on Jul. 8, 2010

  • I hope the China workers get their demands met. They should be paid a decent wage. Also, if the cost of Chinese goods goes up, maybe U.S. companies will be more inclined to produce more goods in our own country and employ U.S. citizens. Wouldn't that be great for our economy?! Nevermind, big business will just move to India or some other country willing to allow slave wages. Sad.
    kenzie07

    Answer by kenzie07 at 4:23 PM on Jul. 8, 2010

  • http://news.yahoo.com/s/ap/20100708/ap_on_bi_ge/as_china_cheap_no_more


    Many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and a few are even resuming production in the West.


    "China is going to go through a very dramatic period. The big companies are starting to exit. We all see the writing on the wall," said Rick Goodwin, a China trade veteran of 22 years, whose company links foreign buyers with Chinese suppliers.

    sweet-a-kins

    Comment by sweet-a-kins (original poster) at 4:17 PM on Jul. 8, 2010

  • SO, if the wages get higher in China will American companies bring the jobs back here?
    matthewscandi

    Answer by matthewscandi at 4:23 PM on Jul. 8, 2010

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