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 Good Junk (@thegoodjunk) is a blog which posts a beautiful gadget a day. Not all of them are 40-year-old Braun or B&O appliances, either! (A lot of them are.) Pictured above is the Casio XW-PD1 performance synthesizer, which was made in 19A5. Below is a MINITEL terminal.
Super Retro-Boy is a compact, minimal reimplementation of Nintendo’s classic Game Boy with the look as well as the tech. It plays real cartidges, including those from the full-color Game Boy Advance—presumably this is why there are four buttons. It gets 10 hours on a charge, and will come with a 10-in-1 game from Retro-Bit […]
A T-Mobile customer in Florida drove her SUV into the store, smashing through the front window and coming to a stop deep in the showroom. Then she emerged from her disabled vehicle, hefted a broken window frame, and smashed a display. “What is wrong with her?” calls out an unseen observer. According to witnesses who […]
Looking to upgrade your weekend? Here are three randomly awesome products on my mind this week.#3 FRESHeBUDS Pro Magnetic Bluetooth EarbudsAs more and more phones and gadgets switch to Bluetooth-only compatibility, you’ll need to get Bluetooth headphones like the rest of us. I’ve been super impressed with these affordable magnetic headphones. Pull the magnetic earbuds apart to auto-connect […]
Traditional folding wallets are designed for paper bills—but these days, carrying cash is rarely a necessity. More often than not, I don’t carry cash at all. This Bogui Clik Wallet is the best answer I’ve found for avoiding the hassle of those tight-fitting credit card pockets.This attractive, minimalist wallet features a protective lip, so my cards don’t […]
Using my iPhone while it’s charging is always a hassle. With tucked-away outlets and the meager length of included lightning cables, comfortable scrolling while plugged in is annoying. These 10-Ft MFi-Certified Lightning Cables are super convenient and probably the best iPhone accessory purchase I’ve made.At over three times the length of normal cables, these reach anywhere you […]