China workers demanding more money, cheap labor ending.

[cutthemdown]

http://finance.yahoo.com/news/Companies-brace-for-end-of-apf-2437567795.html?x=0

SHANGHAI (AP) -- Factory workers demanding better wages and working conditions are hastening the eventual end of an era of cheap costs that helped make southern coastal China the world's factory floor.

A series of strikes over the past two months have been a rude wakeup call for the many foreign companies that depend on China's low costs to compete overseas, from makers of Christmas trees to manufacturers of gadgets like the iPad.

Where once low-tech factories and scant wages were welcomed in a China eager to escape isolation and poverty, workers are now demanding a bigger share of the profits. The government, meanwhile, is pushing foreign companies to make investments in areas it believes will create greater wealth for China, like high technology.

Many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and a few are even resuming production in the West.

"China is going to go through a very dramatic period. The big companies are starting to exit. We all see the writing on the wall," said Rick Goodwin, a China trade veteran of 22 years, whose company links foreign buyers with Chinese suppliers.

[shakenbake]

The big problem is mainly in southern China where there is a lot of Hong Kong and Taiwanese investment. There are some really poor work conditions in those areas and at those companies.

Even still the average blue collar worker in the Greater Shanghai area makes 1200 to 2000 rmb a month (200 to 300). Even if it gets more expensive I don't see it increasing too much.

I also think the profile of the foreign investor has changed. This year there has been a MASSIVE increase in automobile manufacturing investment, but this is because the Chinese are buying cars like crazy. The profile of companies looking to set up here is no longer for export. They want to compete in China for the Chinese market.

[Rohirrim]

That's the problem with workers. Always trying to find a little freedom and dignity. That just does not fit in with the capitalist business model. What business needs to do is invest in genetic engineering that can produce a completely malleable serf unit that works itself to death on little rest and demands nothing but cheap gruel (and can eat standing up). Then, we could really make some progress! That's always been the inherent weakness of the capitalist model - the worker. There's got to be some way to get rid of them! Look at the ****ty effect they have on profit!

[JJJ]

The big problem is mainly in southern China where there is a lot of Hong Kong and Taiwanese investment. There are some really poor work conditions in those areas and at those companies.

Even still the average blue collar worker in the Greater Shanghai area makes 1200 to 2000 rmb a month (200 to 300). Even if it gets more expensive I don't see it increasing too much.

I also think the profile of the foreign investor has changed. This year there has been a MASSIVE increase in automobile manufacturing investment, but this is because the Chinese are buying cars like crazy. The profile of companies looking to set up here is no longer for export. They want to compete in China for the Chinese market.

Yep. They hate working for the Japanese and Taiwanese companies the most. Those companies tend to really grind them hard. They like working for American and European companies. The domestic companies are a mix. Not so much the big staterun companies but the younger emerging Chinese companies coming out of the free market they find attractive. But still American and European companies typically top their list of employment targets.

[shakenbake]

That's the problem with workers. Always trying to find a little freedom and dignity. That just does not fit in with the capitalist business model. What business needs to do is invest in genetic engineering that can produce a completely malleable serf unit that works itself to death on little rest and demands nothing but cheap gruel (and can eat standing up). Then, we could really make some progress! That's always been the inherent weakness of the capitalist model - the worker. There's got to be some way to get rid of them! Look at the ****ty effect they have on profit!

Well they put the "workers" in charge for awhile in the 50's and 60's in China and estimates are up to 30 million people starved, and around 65 to 70% lived below the poverty line.

Then in the 70's they opened their economy to private business and there has been more than 500 million people that have moved out of poverty. Today less than 10% of the population live below the poverty line. Damn those capitalist, free economy a-holes....

[Rohirrim]

Well they put the "workers" in charge for awhile in the 50's and 60's in China and estimates are up to 30 million people starved, and around 65 to 70% lived below the poverty line.

Then in the 70's they opened their economy to private business and there has been more than 500 million people that have moved out of poverty. Today less than 10% of the population live below the poverty line. Damn those capitalist, free economy a-holes....

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