Leap In Price Of Chinese Exports

[gruffydd]

http://www.taipeitimes.com/News/bizfocus/a...8/27/2003325111

extract:

"The price of Chinese goods has leapt upward in the last four months, according to a purchasing managers' survey performed by London-based NTC Research. The survey's index showed a level below 50 -- a level indicating stable prices -- in March but it now stands at 56, a steep increase by the standards of a survey that usually moves in fractional increments."

Another extract:

"We may well be reaching a situation where prices of both commodities and manufactured goods will go up," said Kenneth Rogoff, a former chief economist of the International Monetary Fund.

"That's not pleasant at all," he said.

And another:

Western countries wary of inflation as China prices rise

The cost of Chinese goods has climbed each of the past four months, and the increases will be passed on to consumers at some point

NY TIMES SERVICE , HONG KONG

Sunday, Aug 27, 2006

Anthony Temple, Paddington bear rights owner, says China is no longer a ``bottomless pit of cheap products.''

PHOTO: NY TIMES NEWS SERVICE

During 20 years in the toy business, Anthony Temple has reveled in the bounty of cheap stuffed animals, coffe mugs and figurines on sale from China. But, this year, his buying trip for his London-based company, Rainbow Designs, resulted in a rude awakening.

Traveling through the Pearl River delta north of Hong Kong, Temple found that cost increases -- for raw materials, but above all for labor -- dominated every discussion he had with suppliers.

Far from being keen to underbid each other, Chinese companies talked so consistently about marking up their prices 5 percent to 10 percent that Temple, whose company owns the British distribution rights to cuddly creatures like Paddington Bear and Jemima Puddle-Duck, became convinced that these were not simply negotiating tactics.

"When I went over there, I was under the belief that China is a bottomless pit of cheap products," Temple said.

"When I left, I was not," he said.

Edited August 27, 2006 by gruffydd

[adamUK]

I read the article and it's unsurprising. China's getting more prosperous, the economy's growing and so is the cost of thier raw materials and labour. Ever cheaper goods can't last forever.

I work in the chemical industry and prices of goods like ethylene glycol and terephthalic acid that make the polyesters that go into many of the plastics and clothing are based on international norms much like the price of oil and, of course, are all oil-based derivatives.

[MarkG]

Gonna be pretty tough to fake the inflation figures now. Roll on 10% interest rates.

[OnlyMe]

China labor pains and holiday woes

A shortage of workers at low-cost factories in China could spell trouble for U.S. toys, apparel, shoe retailers.

http://money.cnn.com/2006/08/09/news/inter...dex.htm?cnn=yes

"The cost of living and housing in the coastal region in the east has gone up. That shifts the balance dramatically," said Professor Marshall Meyer, a China expert at the Wharton School. "Most factories order their migrant workers to go home on national holidays. About 5 percent of the 10 million migrant population hasn't come back."

[ronnie]

China upped their rates which is impacting , plus they have 10% inflation internally over there from printing so much cash to keep their currency pegged .When the yuan floats the shitzu will realy hit the fan !!