Foreign Media: China'S Labor Costs Rise, Enterprises Want To Collectively Develop New Markets.

In October 27th, the media website published an article entitled "non China made". Apart from the recognized clothing industry centers such as Bangladesh and Vietnam, the time for new players to join in the clothing game is ripe: Burma, Haiti and Ethiopia want to revive the once proud and proud industry, or even start developing the garment industry from scratch.

Although Ethiopia's infrastructure is very backward, but because of its backing on the African continent, this country similar to "30 years ago" is becoming an attractive long-term investment destination. 6 of the 10 fastest growing economies in the world are in Africa, and livestock stocks in non continents are also large.

The Chinese and Turks do think so.

Huajian shoes group and AECO textile company are top ranked apparel manufacturers in the world. At present, they are planning to invest heavily in the construction of "clothing city". Each "clothing city" can accommodate up to 60 thousand workers and 50 manufacturers.

The article said that because of the brutal dictatorship of the military, Burma was once known as the "outpost of tyranny".

The western countries relaxed their economic sanctions against Burma in 2010, and the country began extensive democratic reforms the following year.

At present, the garment industry in Burma is expected to bring in US $1 billion 700 million in export revenue in 2014, compared with us $900 million in 2012.

According to the Burma Manufacturers Association, Burma workers earn only $30 a month, which is lower than the world bank's poverty line of $1.25 a day.

Earlier reports showed that Ethiopia clothing workers earned between $37 and $53 a month.

Therefore, the wages of garment workers in Burma and Ethiopia are the lowest in the world (Bangladesh garment workers earn about $68 per month).

Not many people will turn a blind eye to these figures, but some experts believe that low wages - a feature that has now become a common feature of all countries and regions in developed economies - is a necessary sacrifice at the beginning, in order to attract investors.

Benjamin Powell, director of the Institute of free market research at Texas Technical University, believes that if job seekers voluntarily choose low paid jobs, this is the best option for a series of bad choices.

"If we impose these laws on these countries, we ask them to raise wages," he said.

To improve working conditions, the reason why some companies choose to go there will no longer exist, and they will also be in a more poverty-stricken position. "

Haiti's export revenues range from 80% to 90% from the clothing industry.

In this country, labor standards are expected to improve.

Arianna Rossi, a research and policy officer of the International Labour Organization and the "better working" organization specializing in the clothing industry, believes that the conditions in Haiti have been greatly improved.

The minimum daily wage increased to $5 in May this year. The latest report released by the "better working" organization shows that factories are basically implementing the relevant regulations, and 37% of garment workers earn more than $6.75 a day.

The article said that whether the clothing industry is conducive to the development of the country's economy and whether it helps individuals improve their economic conditions, countries like Haiti, Burma and Ethiopia are spreading red carpet for all kinds of clothing brands.

Foreign media: the United States focuses on labor resources in central and South America to grab the Chinese rice bowl.

Reference News Network October 30 daily foreign media said that the United States tried to use labor resources in central and South America.

Labour in these areas is becoming more competitive in the context of rising wages in Asia.

In the US and Mexico border areas, an industrial zone that combines cheap electricity and labor will be built.

According to experts, Chinese commodities will be squeezed out of the huge market of the United States, because local manufacturers will develop this product.

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According to the voice of Russia radio website on October 30th, the Boston consulting firm's survey of large enterprises showed that at the end of 2013, more than half of the US companies with annual turnover exceeding US $1 billion have been prepared to move their production back to the mainland.

Experts from Boston consulting firm concluded that moving back to production is becoming a trend for developed economies.

So what are the reasons for this trend? Experts have summarized several reasons.

The most important is the rise in labor prices in Asia, especially in China.

For decades, low price has become the main competitive advantage of Chinese commodities, thus almost occupying the whole world market.

But now China's living standards are rising, and labor prices are rising accordingly.

In some high-tech fields, wages in China are comparable to those in central and Eastern Europe.

In addition, China's electricity prices are rising due to worsening ecological problems.

But the opposite is happening in the US.

The increase in shale gas production has led to a decline in electricity prices, while the increase in Central America's unemployment rate can also provide the United States with cheap labor.

Therefore, for Americans, the production of "migration" is a logical decision.

Of course, there are other reasons for foreign businessmen to flee from China.

Nikita Maslennikov, a consultant at the modern development institute, thinks so.

He said: "there is a serious risk for foreign businesses and a fragile financial system.

In this system, the group and local governments are heavily indebted.

The slow pace of economic liberalization also makes them unhappy.

The action plan of financial institutions is difficult to find out. They either add stimulus to economic growth or solve problems that have already been accumulated.

Indeed, the total amount of loans in the Chinese economy has exceeded 200% of GDP.

There are also lessons in history. For example, Japan plunged into a depression when the similar index reached 230%, and the US sub prime crisis in 2008 was also due to a 249% debt pressure in the economy.

Indeed, the worries of foreign businessmen are not groundless.

According to Nikita Maslennikov, a consultant at the Institute of modern development, this situation forces investors to think about where China's financial system and economy will go.

The "migration" of American manufacturing enterprises will hurt the export oriented Chinese economy, and the United States is its main trade and investment partner.

China's production enthusiasm is declining. According to the first half of the National Bureau of statistics, industrial growth in 1-6 is slightly over 7%, which is the lowest index in the last two years.

What should China do in such a situation? Obviously, we need to keep an eye on the domestic market.

But the pformation of economic growth is not a day's work.

Experts stressed that export services could become temporary solutions in the case of declining industrial commodity exports.

China has made some progress in this field.

In 2013, the share of services in China's GDP exceeded the share of industrial production for the first time.

Real estate, retail trade and finance account for 46% of GDP, compared to 44% of industrial production.

And there is room for growth.

You know, the service sector in developed countries provides 70% of the total economy.

American Journal: India wants to become the new center of cheap labor in China?

Reference News Network September 13 daily news, foreign media said, India hopes to become China once: cheap labor source, for the world to make small products, sports shoes and children's Meal toys.

The only difference between Chinese and American multinationals is that Indians are opening borders to friends of the north.

According to the biweekly website of Forbes in September 8th, in June of this year, the India government signed an agreement with China to build multiple industrial parks in India.

On June 30th, commerce minister Nilmara Sitalaman signed the agreement after meeting with Chinese Commerce Minister Gao Hucheng in Beijing.

It is reported that he has raised concerns about India's high trade deficit of 35 billion dollars between the two countries.

By contrast, China's trade surplus with the world is about $48 billion a month.

So she put forward the idea of letting China invest in its desired investment area: Overseas low-cost manufacturing industry, in return for India goods and services to enter the Chinese market to a greater extent.

The two sides signed a memorandum of understanding on cooperation in the construction of industrial parks in India, in order to facilitate China's investment in India.

Since the memorandum of understanding is not an investment agreement, it is obvious that Beijing is not so interested in becoming a world factory.

Some manufacturing industries have moved to Southeast Asia.

Vietnam is an example.

India may become a new centre for low skilled workers who make goods for Chinese people in the process of trying to become more value-added manufacturers but not completely erasing their labor history.

India has a large population, including many low-income people.

Although the culture and economy of the two countries are completely different, India regards China as a country capable of lifting millions of people out of poverty since 2000.

India hopes to achieve the same goal.

Of the four emerging markets, India is the poorest and its GDP per capita is less than US $3000 per year.

Raghuram Rajan, governor of India's central bank, said in a speech at the Chicago Institute of global affairs in September 5th that there are obvious differences between China and India on the issue of development.

He said: "in India, it is more difficult to build railways with land purchased because it is necessary to reach agreement."

Chinese President Xi Jinping will visit India this month, and some in Delhi want to make use of the desire of Chinese enterprises to develop towards globalization.

In a report published by the newspaper trust in India, Sita Raman said, "we expect a lot, and they expect a lot.

If successful, many agreements will be reached.

In 2013-2014 years, bilateral trade between China and India amounted to US $65 billion 850 million.

Over the past 14 years, the total investment of Chinese enterprises in India has reached US $410 million, averaging about US $29 million per year.

Investing in India is not easy, even for India companies.

India's domestic business leaders hope that the newly elected Modi administration will be able to restart the capital investment of India and foreign enterprises again.

"What we and all the people really want to see is that businesses are going to invest in India again," said Nicholas Jakiye, a new market economist at the UK Standard Life Investment Corporation.

Enterprises are subject to a series of investment and environmental laws.

In addition, India's economy has remained relatively closed to the outside world.

Last year, the Singer administration allowed foreign retailers such as WAL-MART to eventually leave the wholesale sector and enter the retail market.

Local governments protested that the policy had not been implemented during Singer's term of office.

It is not clear whether the pro business Modi can persuade the family store that dominates India to allow WAL-MART to enter.

In India, more often than not, meat and fruits are sold on one or two sides of the street, including meat and fruit, but not meat and fruit.

Outside a big city, finding a supermarket is rather difficult.

Last year, the India government announced plans to allow foreign investment to control India airlines.

After the announcement of the plan, a large number of agreements were soon reached, which indicates that international companies are interested in the investment market, and if there is an appropriate policy, they will definitely come to the India market.

Foreign media: will labor costs rise and China will no longer be the world's factory?

Reference News Network August 22 daily, foreign media said, a private financial machine.