High Wages, Labor Shortages In China

The HKTDC has an interesting report on the Hong Kong China economy. Of course, the HKTDC has a bit of boosterism in its reports, but the facts are rock solid.

The problem of labor shortages continues to plague China, forcing labor rates up and up. Chinese labor is nominally less expensive, but that is changing. Anyone who counts on cheap labor being a factor is going to find he is building a biz on shifting sands.

Another alarming note is Hong Kong is clearly shifting the focus form export to USA to export to China. Appreciation of the RMBY will somewhat force that, but the continued growth in China is changing the trade lanes.

The article notes China is an attractive market, but companies all over the world are looking at China, meaning China is going to get the benefit of cheap and plentiful from all over the competing world. And of course, the point is made Hong Kong best competes on design.

Bookmark this post --- Email this post