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Yahoo: Companies Brace For End Of Cheap Made-In-China Era.

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'Companies brace for end of cheap made-in-China era':

http://finance.yahoo.com/news/Companies-brace-for-end-of-apf-2437567795.html?x=0

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.

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.

[...snip...]

Labor costs have been climbing about 15 percent a year since a 2008 labor contract law that made workers more aware of their rights. Tax preferences for foreign companies ended in 2007. Land, water, energy and shipping costs are on the rise.

In its most recent survey, issued in February, restructuring firm Alix Partners found that overall China was more expensive than Mexico, India, Vietnam, Russia and Romania.

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'Companies brace for end of cheap made-in-China era':

http://finance.yahoo.com/news/Companies-brace-for-end-of-apf-2437567795.html?x=0

Good. The ultimate denoument of globalistion as its parasitic unsustainably is revealed. Its bankrupted the purchasing nations (the west) and now the labour source in the producer nations is no longer ready to work for slave wages. The games up. What comes next?

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Good. The ultimate denoument of globalistion as its parasitic unsustainably is revealed. Its bankrupted the purchasing nations (the west) and now the labour source in the producer nations is no longer ready to work for slave wages. The games up. What comes next?

A cuddly toy?

We need to have a treaty that says we wont use nukes if they don't then we can all have good old fashioned

wars again, like gentlemen.

You know the sort of thing Brother Lucifer, the old smash everything up and rebuild again, great for the

economy.

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A cuddly toy?

We need to have a treaty that says we wont use nukes if they don't then we can all have good old fashioned

wars again, like gentlemen.

You know the sort of thing Brother Lucifer, the old smash everything up and rebuild again, great for the

economy.

The problem is, this time the pensions ponzi needs all those strapping young men. Can't be killing them off.

The rules of war would have to include a minimum age limit for all frontline troops, of, say, about 50 or 55. That way the thing would start looking like a nice pyramid again, instead of a sort of fat square.

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A cuddly toy?

We need to have a treaty that says we wont use nukes if they don't then we can all have good old fashioned

wars again, like gentlemen.

You know the sort of thing Brother Lucifer, the old smash everything up and rebuild again, great for the

economy.

Bust capitalist model, 10 years of recession then world war...wouldn't be the first time, as Shirley Bassey "its just history repeating itself...."

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labour costs rising 15% a year in china

deflation it is then :lol:

As I've mentioned 1000 time already, everyone thinks it'll be the West that "hyper" inflates. It won't be. It'll be the East. >10% inflation in India, the end of fuel subsidies - China has just started experimenting with liquid fuel taxation - they were subsidising petrol by 6% of GDP a few years ago.

Their next 10 years is our mid-70's to mid-80's period - a demographic wage push higher, way too loose monetary policy, over dependence on oil, etc, etc. - they're doomed. It'll take their standard of living down over the next 10 years - not higher. Nothing goes straight up.

Chinese company profits drop by 4% for every 1% rise in the value of the Yuan. The days of China being able to export to the West are OVER. We've no more credit or desire to consume and they don't make anything cheap enough anymore.

I was going to post the article but thank heaven someone got there before me. I'd just be "done" for China bashing by Bardon et al.

Edited to add: And 30% house price falls in Q4 as stated by a government minister and echoed by Standard Chartered to their clients.

Jim Chanos was right, it seems. And so was HPC for picking up on it about a year ago.

30% M3/M4 growth YoY in January and February. Looks like that was their peak.

Edited by AvidFan

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As I've mentioned 1000 time already, everyone thinks it'll be the West that "hyper" inflates. It won't be. It'll be the East. >10% inflation in India, the end of fuel subsidies - China has just started experimenting with liquid fuel taxation - they were subsidising petrol by 6% of GDP a few years ago.

The next 10 years is our mid-70's to mid-80's period - a demographic wage push higher, way too loose monetary policy, over dependence on oil, etc, etc. - they're doomed. It'll take their standard of living down over the next 10 years - not higher. Nothing goes straight up.

Chinese company profits drop by 4% by every 1% rise in the value of the Yuan. The days of China being able to export to the West are OVER. We've no more credit or desire to consume and they don't make anything cheap enough anymore.

I was going to post the article but that heaven someone got there before me. I'd just be "done" for China bashing by Bardon et al.

Edited to add: And 30% house price falls in Q4 as stated by a government minister and echoed by Standard Chartered to their clients.

Jim Chanos was right, it seems. And so was HPC for picking up on it about a year ago.

30% M3/M4 growth YoY in January and February. Looks like that was their peak.

+1

I get so sick of slack jawed spittle flecking rug chewing goggle eyed "free" market nutters ranting on about how great the BRICS are with absolutely no appreciation of the unsustainable paradox of globalisation or the fact that these countries too have fundamental underlying problems as great if not greater than our own.

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Good. The ultimate denoument of globalistion as its parasitic unsustainably is revealed. Its bankrupted the purchasing nations (the west) and now the labour source in the producer nations is no longer ready to work for slave wages. The games up. What comes next?

Equalising costs, a resurgence of domestic supply in Western countries, maturity for the Eastern economies.

Sounds good to me.

Edited by bogbrush

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Equalising costs, a resurgence of domestic supply in Western countries, maturity for the Eastern economies.

Sounds good to me.

Yep...it could all end horribly but but it could equally all come out rosey.

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Yep...it could all end horribly but but it could equally all come out rosey.

Things just change; it's a process that involves painful adjustment and nothing ever turns out rosy, at least nothing ever stabilises as rosy.

China HAS to mature at some point and their hyper-low wage phase was only ever that, it had to move on to another stage. That stage will bring plusses and minusses for them and us. We're going to change soon too; we're going to become less self-indulgent, more "raw" and maybe a little bit more like them. This also will bring good and bad, but that's just the way it is.

There is no end to history, just stages along the way.

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Things just change; it's a process that involves painful adjustment and nothing ever turns out rosy, at least nothing ever stabilises as rosy.

China HAS to mature at some point and their hyper-low wage phase was only ever that, it had to move on to another stage. That stage will bring plusses and minusses for them and us. We're going to change soon too; we're going to become less self-indulgent, more "raw" and maybe a little bit more like them. This also will bring good and bad, but that's just the way it is.

There is no end to history, just stages along the way.

Farily typical development model and good for china. Low wage -> Rising standard, industrlisation -> Move up value chain -> advance economy.

Japan, Korea and even US etc all been through this.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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