Guangdong, the Chinese province in the Pearl River Delta where practically everything you've bought in the past ten years was made, is about to see a minimum wage increase effective Jan 1, with some workers seeing increases as high as 20 percent. Guangdong has experienced high inflation. The wage increases, combined with weak western currencies, suggests that prices for virtually every consumer good in the west will rise significantly in the new year. The experts quoted in this Global Post article say that while other cheap labor markets exist in places like Bangladesh, they lack the scale and infrastructure of south China and are unlikely to provide a substitute.
For decades, Guangdong province and China’s Pearl River Delta have been at the heart of China’s economic rise. And while larger manufacturers and state-owned companies have contributed greatly to the boom, smaller and medium-sized private firms have also helped propel China to become the world’s second-largest economy.
As wages, raw material costs and other costs rise, those smaller businesses say they’re being cut out of the mix.
Lau said at the current rate, he expects 30 percent of factories in Guangdong to reduce production or close down this year, in the wake of a minimum wage increase last year. Another 18-20 percent pay rise would decimate the industry.
But Crothall is less than sympathetic, noting that although China’s inflation rate has slowed somewhat, China’s workers still need more to get by.
Bye-bye cheap, Chinese labor
The LG Watch Urbane 2nd Edition LTE was the company’s latest answer to Apple’s dominating entry into the market. But it died fast, pulled off the shelves within a week due to an unspecified problem with the display. Ron Amadeo writes that they “are not in a position to communicate the specifics of the issue […]
I’ve been using Stanley’s classic flask for years (I literally packed one, full of nice bourbon, in my suitcase this morning for the Melbourne/Sydney/Berlin trip I’m leaving on tonight), and I have no complaints: it’s beautiful, easy to close, and rugged.
Mattel’s Hello Barbie has a microphone and a wifi interface, and it transmits the phrases it hears to a central server in order to parse them and formulate a response. Mattel claims that the data isn’t being retained or harvested for marketing purposes, and assures parents that they can make Barbie stopping eavesdropping on them […]
Store more on your Mac with this microSD memory card adapter.
Carrying this EDC card is like slinging around a handheld toolbox wherever you go. Its minimal design is small enough to fit in your wallet’s billfold, and it’s TSA-compliant so you’ll never leave it behind. It’s got hex wrenches, metric and imperial rulers, flathead and Phillip’s screwdrivers, and a bottle opener so that you’re ready […]
Today only take an additional 15% off the below drones today using coupon code: DRONE15 at checkoutThe Code Black is our top-selling drone of all time—and for good reason. This powerful, palm-size drone is not only insanely fun to fly, but can capture some serious video footage from up above. With a flight time of […]