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China-Japan-Koreas
China's shift away from cheap labor hard on all
2010-06-01
Ay-Pee. Rest at link.
Global manufacturers struggling with life-or-death pressures to control costs are finding that the legions of low-wage Chinese workers they rely on have limits.

A strike at Honda Motor Co. and the official response to a spate of suicides at Foxconn Technology, a maker of electronics for industry giants such as Apple, Dell and Hewlett-Packard, suggests China's leaders are at least tacitly allowing workers to talk back.
Seems to me that low-cost Chinese labor has been holding inflation in check. This force may diminish substantially if this catches on.
Walmart just announced a general lowering of prices. But they seem to be sourcing well beyond China these days...
Posted by:gorb

#3  Mr. Wife says most manufacturers set up in China to sell to the Chinese, not to manufacture for Walmart customers in the U.S. There have been cheaper labour pools elsewhere for fifteen years.
Posted by: trailing wife   2010-06-01 07:08  

#2  Sounds like the honeymoon is over.

Better pull out and head for Vietnam like the real wage scavengers, i.e. Nike.
Posted by: bigjim-CA   2010-06-01 03:31  

#1  That last sentence should have been hilighted, not italicized.
Posted by: gorb   2010-06-01 02:39  

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