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View Diary: Owners of the world, unite (271 comments)

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  •  China is already no longer the low-wage haven (19+ / 0-)

    There have been strikes in China--STRIKES IN CHINA--that have caused the Chinese government endless headaches. Indeed, the Chinese workers have so successfully forced their wages to rise that the supranational corporations are already leaving--they are moving all their low-wage high-profit factories to Cambodia, Thailand or Vietnam, the new low-wage havens.

    The corporados will simply chase the low wages all around the planet, hitting every country in turn, until they run out of countries.  Then they're fucked.

    •  We can't wait that long. (4+ / 0-)
      The corporados will simply chase the low wages all around the planet, hitting every country in turn, until they run out of countries.  Then they're fucked.

      In the GOP your status is inversely proportional to your integrity.

      by anothergreenbus on Sun May 22, 2011 at 07:16:05 AM PDT

      [ Parent ]

    •  Look to Barbie (2+ / 0-)
      Recommended by:
      fayea, Utahrd

      I have been told that looking to see where Barbie and Ken are made is a good tipoff to where wages are low.  Most children in the US would have an interesting economic lesson if they just looked at the changing "Made in ...." labels on their toys.

    •  By that time, so are we (1+ / 0-)
      Recommended by:
      happymisanthropy

      Money=speech; every dollar has a right to be heard. The Supremes

      by orson on Sun May 22, 2011 at 09:19:02 AM PDT

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    •  Chinese wages rose 20-30% in 2010 (1+ / 0-)
      Recommended by:
      Eric Nelson

      To compete, production is being driven inland to poorer provines which bring with it some economic benifits, but you are correct in stating China is no longer cheap and increasingly losing out to lower wage countries as the economic cycle runs it course.

      All of which suggest Americans reconsider the equasion and focus on what can be gained in the Chinese market.

      Most certianly export led countries such as Germany and Japan look at China from that perspective and have much healthier trade balances as a result.

      Refer to my long-winded comment addressed to the diarist elsewhere as I close on this point.

      What about my Daughter's future?

      by koNko on Sun May 22, 2011 at 11:10:49 AM PDT

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      •  again, you are right (2+ / 0-)
        Recommended by:
        Thomas Twinnings, koNko

        China's value to the supranational corporations is no longer as a low-wage haven----that role is already disappearing and is being taken up by other nations such as Vietnam and Cambodia. China's value to the corporados now is as a market--just as the US's value to the global economy is as a market.

        Does that mean everyone will pull all of their factories out of China?  Nope---there are advantages to having one's production very close to one's major market---which is of course why most Japanese cars sold in the US are actually made in the US. Others will do the same in China.

        That will mean a tremendous change for China.  The utility of a low-wage haven lies in, well, its low wages.  But the utility of a large market lies in its purchasing ability--which requires HIGH wages.  It is in the global economy's interests, therefore, for Chinese wages to go up.  A lot.

        The more money they have, the more things everyone can sell to them.

        •  The so-called "China plus One" (0+ / 0-)

          Is a common policy of multinational corporations, meaning, you have to have a presence in China first for the market, and you need at least one other plant in a lower wage country to maximize profit and avoid over-dependance on China.

          But now it is becoming "China plus Others" as wages rise.

          Long-term it is absolutely necessary for China to become more domestically led and that makes opportunities for others in China - we agree on that - but it will take time and the demographics suggest the Chinese market will peak along with population about 2040, after which the population will rapidly age.

          The good thing is domestic consumption in affluent costal cities is already quite strong and as jobs move West so will consumption so the market has legs due to size, unlike some smaller countries that peak rapidly.

          What about my Daughter's future?

          by koNko on Sun May 22, 2011 at 08:28:38 PM PDT

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