Comments on: “Made in China” is Cheap No More http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/ The MBA Graduate Program at Cal Poly Mon, 21 May 2012 23:16:53 +0000 http://wordpress.org/?v=2.6.3 By: Chris Kirk http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4684 Chris Kirk Tue, 18 Mar 2008 23:56:35 +0000 http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4684 The stand that workers are taking against their employers seems to be following at least in some capacity the history of any industrialized country. As time goes on workers eventually reach the point where they are in a position of demanding better wages better working hours and better treatment from employers. The concept of lean manufacturing making the move into China seems like a reasonable one considering the changes that have occurred here in the United States. The conflicting accounts about labor surplus or shortage make it hard to comment on how this is effecting the trend of factory closures. I really have though from the beginning that the stand for human rights in China would begin at the factory worker level. I am interested in seeing how this plays out in the long run and the ramifications that it has for the future if human right s throughout the country. The stand that workers are taking against their employers seems to be following at least in some capacity the history of any industrialized country. As time goes on workers eventually reach the point where they are in a position of demanding better wages better working hours and better treatment from employers. The concept of lean manufacturing making the move into China seems like a reasonable one considering the changes that have occurred here in the United States. The conflicting accounts about labor surplus or shortage make it hard to comment on how this is effecting the trend of factory closures. I really have though from the beginning that the stand for human rights in China would begin at the factory worker level. I am interested in seeing how this plays out in the long run and the ramifications that it has for the future if human right s throughout the country.

]]> By: william jencks http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4658 william jencks Tue, 18 Mar 2008 08:49:45 +0000 http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4658 This seems like the natural competition backlash to a manufacturing "balloon" in this part of China. Just as every other economic boom of prosperity around the world is followed by a trough of natural selection, China will go through its natural business cycles. These cycles are part of economic nature - while they may force some companies or factories out of business, the ones that remain will have more efficient and usually all-around better situations in the long run. Of course the other effect of this backlash will likely be a migration of truly low cost production to less expensive areas, which will cause more booms followed by dips of local economic prosperity. It’s all a cycle. Every closed door inevitably leads to new opportunity… where is the next one? This seems like the natural competition backlash to a manufacturing “balloon” in this part of China. Just as every other economic boom of prosperity around the world is followed by a trough of natural selection, China will go through its natural business cycles. These cycles are part of economic nature - while they may force some companies or factories out of business, the ones that remain will have more efficient and usually all-around better situations in the long run. Of course the other effect of this backlash will likely be a migration of truly low cost production to less expensive areas, which will cause more booms followed by dips of local economic prosperity. It’s all a cycle. Every closed door inevitably leads to new opportunity… where is the next one?

]]> By: Glenn Hughes http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4646 Glenn Hughes Tue, 18 Mar 2008 05:42:21 +0000 http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4646 This is another one of the interesting contradictions we tend to see with regards to China. 1000 factories closing sounds like a huge number, however some factories are experiencing huge labor surpluses. Could it be that China needs to reach an equilibrium by building factories where the work is as opposed to building where its cheap and others have had success in the past? I'm interested to see the effect these new laws will have on the employment situation overseas now that China is producing more law students and expanding its legal system. This is another one of the interesting contradictions we tend to see with regards to China. 1000 factories closing sounds like a huge number, however some factories are experiencing huge labor surpluses. Could it be that China needs to reach an equilibrium by building factories where the work is as opposed to building where its cheap and others have had success in the past? I’m interested to see the effect these new laws will have on the employment situation overseas now that China is producing more law students and expanding its legal system.

]]> By: Chris Carr http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4615 Chris Carr Tue, 18 Mar 2008 00:13:35 +0000 http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4615 When in China a few weeks ago, one of the factory owners I met with agreed that some factories (inefficient ones) in southern China were going belly up. But he went on to note that the vast majority will be fine and said work is unlikely to move inland because of the developed infrastructure that southern China offers. He also noted that 2, 3 and 4 years ago, there was a labor shortage, but now, he has a line of people outside his door trying to get hired and that he is seeing a labor surplus. When in China a few weeks ago, one of the factory owners I met with agreed that some factories (inefficient ones) in southern China were going belly up. But he went on to note that the vast majority will be fine and said work is unlikely to move inland because of the developed infrastructure that southern China offers. He also noted that 2, 3 and 4 years ago, there was a labor shortage, but now, he has a line of people outside his door trying to get hired and that he is seeing a labor surplus.

]]> By: Nicholas Dominguez http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4609 Nicholas Dominguez Mon, 17 Mar 2008 22:28:09 +0000 http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4609 It is strange to think that China is running out of labor. I think Sin-Yaw is right the natural progression will be to move inland. But at the same time the wave of factories that will push west will bring with it a ripple of labor rights and high-technology jobs. With the east coast of China leading the trend it appears that China doesn't want to take all the manufacturing jobs away from the rest of the world, contrary to many American perceptions. It is a natural sequence of stages to go from manufacturing to service to high-tech jobs. But the world has never seen this kind of pace before. China is showing tremendous strength to be able to cope with change this fast. It is strange to think that China is running out of labor. I think Sin-Yaw is right the natural progression will be to move inland. But at the same time the wave of factories that will push west will bring with it a ripple of labor rights and high-technology jobs. With the east coast of China leading the trend it appears that China doesn’t want to take all the manufacturing jobs away from the rest of the world, contrary to many American perceptions. It is a natural sequence of stages to go from manufacturing to service to high-tech jobs. But the world has never seen this kind of pace before. China is showing tremendous strength to be able to cope with change this fast.

]]> By: Sin-Yaw Wang http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4583 Sin-Yaw Wang Mon, 17 Mar 2008 04:53:53 +0000 http://calpolymbatrip.com/2008/china/%e2%80%9cmade-in-china%e2%80%9d-is-cheap-no-more/#comment-4583 All those factors are true, but it is still early to predict the demise of China's manufacturing dynasty. They have at least 13 billions people and many of them live on the west region where labors are abundant and cheap. Just like manufacturing moved from US to Japan to Taiwan and Hong Kong. We will see a wave of migration inland, following the massive transportation build-up. In the next decade, China's west region will replace GuangDong and ShangHai regions. Let's wait for Africa's turn later. All those factors are true, but it is still early to predict the demise of China’s manufacturing dynasty.

They have at least 13 billions people and many of them live on the west region where labors are abundant and cheap. Just like manufacturing moved from US to Japan to Taiwan and Hong Kong. We will see a wave of migration inland, following the massive transportation build-up. In the next decade, China’s west region will replace GuangDong and ShangHai regions. Let’s wait for Africa’s turn later.

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