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China’s manufacturing sector must reinvent itself if it’s to survive - The Washington Post

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The situation in Guangdong province in 2012, with older factories unable to compete with the rising wages, stricter environmental enforcement, and lower export demand. Many Taiwanese manufacturers are closing factories. The growth in Dongguan, a manufacturing hub in Guangdong, is estimated at 3.5% for the first three quarters of 2012, half the overall rate for Guangdong province. A researcher in a Chinese think tank says China's manufacturers are in a kind of "sandwich trap" with competition from Vietnam and India in lower wage production and competition from Germany and the U.S. in higher wage technology intensive products. This is especially true in 2012-2013, now that U.S. and German manufacturers have reduced costs and increased competitiveness.

Changes in China's factories in 2010-2013. Changing manufacturing.

01/05/2008

Conditions at Hon Hai and a strike at Honda are part of a changing picture of worker dissatisfaction with wages and discipline at Chinese factories. The period of low prices and worker discipline of the kind that prevailed for several decades of industrialization appears to be closing. The Chinese government is also having second thoughts as America and Europe are no longer the growing markets they used to be, and as it weighs a policy shift to domestic consumption.

Grouped Articles

China: A Billion Strong but Short on Workers

Wall Street Journal 05/02/2013

China Manufacturers Survive by Moving to Asian Neighbors

Wall Street Journal 05/02/2013

China Factories Try Karaoke, Speed Dating to Keep Workers

Wall Street Journal 05/03/2013

Strains Show in China's Job Market

Wall Street Journal 06/11/2013

Honda Revs Up Outside Japan

Wall Street Journal 12/21/2011

Unrest May Signal New Phase in China Economy

New York Times 05/29/2010

China wage increases and government policy to promote domestic consumption.

01/05/2008

Wage increases of 20% at Hon Hai and upto 100% at Honda factories in China from wages that were kept low for the export market, are now the trend in China. The government policy is shifting to encourage such wage increases to promote domestic consumption and reduce an overreliance on export markets for growth. This is happening just as trade tensions are increasing with the USA.

Grouped Articles

Beijing Signals a Shift on Economic Policy

New York Times 05/24/2013

Honda's Long-Haul Dilemma in China

Wall Street Journal 06/24/2010

Interview With Japan Foreign Minister Katsuya Okada

Wall Street Journal 09/02/2010

Yuan's Rise Hurts China's Exporters

Wall Street Journal 01/20/2014

China Will Keep Growing. Just Ask the Soviets.

New York Times 10/24/2014

Adidos and Hotwind? In China, Brands Evoke Foreign Names, Even if They’re Gibberish

New York Times 12/26/2014

China and pollution of air and water.

05/10/2006

Use of coal-fired plants and more automobiles on Chinese streets and highways are worsening air quality in Chinese cities. Industrialization is taking its toll on air and water quality. 25% of lakes, rivers and streams have water too contaminated to be used for drinking water, according to areport by the China Ministry of Environmental Protection.

Grouped Articles

Pollution Is Radically Changing Childhood in China’s Cities

New York Times 04/22/2013

China Seeks to Calm Anxiety Over Rice

Wall Street Journal 05/22/2013

Cadmium-Tainted Rice Discovered in Southern China

New York Times 05/21/2013

China Debates Grid Reform

Wall Street Journal 06/06/2013

Air Pollution From Coal Use Cuts Lifespans in China, Study Shows

Wall Street Journal 07/09/2013

Paying Auditors for Honest Appraisals

Wall Street Journal 07/18/2013

Stiglitz and Sen's report point to need for looking at multiple indicators of growth, including education, health care and environment.

12/30/2005

Be skeptical of touting GDP growth numbers. China which has done this has learnt from this experience as it shifts to trying to assess the costs of environmental degradation in headlong industrialization. The U.S. and the shift to bigger houses and bigger cars, which later fed a collapse of housing and the auto industry show a different angle of this obsession with GDP numbers that can work constructively or destructively if not understood and managed properly. Air quality and pollution is a major problem in China and affects the quality of life.

Grouped Articles

Pollution Is Radically Changing Childhood in China’s Cities

New York Times 04/22/2013

China Seeks to Calm Anxiety Over Rice

Wall Street Journal 05/22/2013

Japan Is a Model Not a Cautionary Tale

New York Times 06/09/2013

Anger Spills Onto Brazil's Streets

Wall Street Journal 06/18/2013

Brazil's north-east: Catching up in a hurry

Economist 05/21/2011

China's Silver Linings Playbook

Wall Street Journal 06/24/2013

The situation in Guangdong province, Shenzen and other export focussed regions in China- 2008-2014

01/05/2008

The rise of a manufacturing sector based on low wages, migrant workers, lax pollution controls, and export demand, is hit by the decline in demand from the U.S. and Europe with slow economic growth and deficits, worker discontent and rising wages, and stricter environmental enforcement. Growth in the manufacturing secotr in Guangndong provice is estimated at 3.5% for 2012, half the overall growth rate in the province and many manufacturers from Taiwan are closing down older plants that can't compete. Experts in China call for a new type of industrialization baded on technology, R&D and worker training that can compete in the new situation of a resurgence of manufacturing industry in the U.S. and Europe.

Grouped Articles

China: A Billion Strong but Short on Workers

Wall Street Journal 05/02/2013

China Manufacturers Survive by Moving to Asian Neighbors

Wall Street Journal 05/02/2013

China Factories Try Karaoke, Speed Dating to Keep Workers

Wall Street Journal 05/03/2013

Hon Hai to Add Robotics in China

Wall Street Journal 08/03/2011

Strains Show in China's Job Market

Wall Street Journal 06/11/2013

Unrest May Signal New Phase in China Economy

New York Times 05/29/2010


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