Rising Costs of Chinese Labor

A lot has been written lately on the rising costs of Chinese labor, several articles are shown below discussing how this is having a positive impact on the rest of the ASEAN nations.  We at FDI have offered a similar opinion for quite some time now, often times we have had US firms come and ask for help in setting up manufacturing operations in China.  There is one question to ask yourself that we ask every client when they make this request, "Why do you want to manufacture in China?"  If the answer is cheap labor, China is not the correct market for you, instead look to some of the other ASEAN nations.  However, if your answer is to better sell to the Chinese market, we encourage this perspective.  Having access to the Chinese market as labor rates, and thus buying power, rise is a great sales tactic.  Keep this in mind when you are looking at expansion.

Financial Times Article

Want China Times Article

China Post Article