International Expansion found an interesting article by Ryan Underwood in Inc. on Nov. 1.
He makes the point that there is a growing cost of doing business in China. A roaring Chinese economy has pushed up prices and created a tight labor market. In some areas, particularly the manufacturing port cities near Hong Kong, Chinese labor costs have risen as much as 30 percent in just the past few months, owing to increased competition for workers and higher costs of living.
The price of doing business in China could go even higher following the country's recent shift in currency policy: In June, the Chinese government officially removed the Chinese renminbi's peg to the U.S. dollar. Thus far, the renminbi has strengthened only a little, but the U.S. government is pressing for more movement. At the same time, companies importing goods from China face higher shipping costs based on a number of factors, including a shortage of shipping containers and new measures that increase shipping times.
He makes the point that there is a growing cost of doing business in China. A roaring Chinese economy has pushed up prices and created a tight labor market. In some areas, particularly the manufacturing port cities near Hong Kong, Chinese labor costs have risen as much as 30 percent in just the past few months, owing to increased competition for workers and higher costs of living.
The price of doing business in China could go even higher following the country's recent shift in currency policy: In June, the Chinese government officially removed the Chinese renminbi's peg to the U.S. dollar. Thus far, the renminbi has strengthened only a little, but the U.S. government is pressing for more movement. At the same time, companies importing goods from China face higher shipping costs based on a number of factors, including a shortage of shipping containers and new measures that increase shipping times.
To read the whole article, go to The Growing Cost of Doing Business in China.
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