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China'S Shoes And Clothing And Other Commodity Prices Will Affect The Global Market.

2011/7/22 15:20:00 49

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"Made in China" once supported the development.

market

In particular, the first ten years of prosperity in the early 1990s.

Low wage workers in rural China have been exporting cheap products to the United States, which has lowered the inflation rate of the United States.

As China no longer offers cheap resources and labor, and no longer pays wages for workers at a lower exchange rate level, Chinese goods are facing rising prices and global markets will also accept changes.

Observing the US market, we can see that the prices of imported goods are rising and become the pressure source of inflation.

From shoes to others

industry

The products made in China can be marked on a higher CIF price.

US import prices have risen 8% in the past two years.

This result excludes oil that is driven by global demand and geopolitics.

Because of China's existence, the global market has basically been in the low supply cost period in the past 30 years.

In March of this year, as an intermediary trader, the Hongkong logistics and consumer goods exporter Li Feng Limited has issued a warning that the prices of manufactured products such as Chinese shoes and clothing will go up.

Li Feng believes that the wage policy adjustment in Beijing in 2009 will follow.

Exit

The sharp rise in prices has ended the period of low supply costs.

The US Department of labor data show that in the past 17 years, the consumption price of footwear in the United States has declined for 13 years.

Now cotton prices have risen sharply.

China's labor costs, pportation costs and appreciation of the renminbi have also prompted producers and retailers to raise prices.

Up to the end of May, the price of shoes and clothing in the United States increased by 1% in the 12 months.

The clothing industry association of America estimates that the price of its member enterprises will rise by 4% to 6% over the same period this autumn.

Some analysts pointed out that in the next few years, as China's labor costs rise steadily, especially when China enters "Lewis turning point", the US CPI will increase to about 4%.

"Lewis turning point" refers to the turning point of the rapid rise of wages in rural areas as the rural surplus labor force in developing countries has gradually decreased.

For decades, hardworking Chinese workers have lowered labor costs, and now Chinese workers demand better treatment and working conditions.

Perhaps for quite some time, Chinese labor and Chinese goods will still be cheaper, but please remember: it no longer shoulders the responsibility of low cost and low global cost.

It is impossible to find a replacement of a large scale.

As long as Chinese shoes and garments are moving up in the value chain of global production, consumers in developed markets will pay higher prices.