Bye bye cheap labour (China)
Article Type: Abstracts From: Strategic Direction, Volume 24, Issue 9
Harney A.Far Eastern Economic Review, March 2008, Vol. 171 No. 2, Start page: 20, No. of pages: 7
Purpose – outlines how labour is beginning to assert itself in the Chinese manufacturing sector. Design/methodology/approach – looks at how Chinese manufacturers are being hit by rising energy, material and payroll costs, higher tax rates and tougher environmental and labour regulations. Reports how thousands of factories in southern China’s Gouangdong province are being forced out of business or are re-opening in cheaper areas in inland China, while others are moving to cheaper Asian countries. Reports on how protests and strikes have hit firms in Guangdon (the first region to benefit from foreign investment) in response to flouted labour and environmental laws. Describes how Guangdong manufacturers are changing from a low cost, low skill to one focusing on producing higher value goods; identifies how finding enough skilled workers may be problematic and highlights how workers are beginning to demand improved conditions both in Guangdong and inland areas; quotes those who believe that the changes will be good for China’s factories. Originality/value – examines how China’s manufacturers in Guangdong are attempting to move up the value chain. ISSN: 0014-7591 Reference: 37AH932
Keywords: China, Corporate strategy, Economic development,Labour market, Manufacturing
