Chinese manufacturers setting up plants abroad

[AndrewJin]

My friend, that is Wuhan, which is a provincial large city, lol. I'm not here to dispute in the growth of the capacity and capability of Wuhan, there's no doubt in my part. I'm talking about province-wide, my friend. Hubei province alone has a population of over 58 million; the majority of those don't live in large cities, but in rural communities such as Shennongjia, Songluo , Yangri et al. In fact many of these county-level areas can easily host manufacturing.

I've been to Gansu, Guangxi, Anhui; these provinces are largely underdeveloped, and standard of living substantially lower than say the larger more successful coastal areas such as Shenzhen, Guangzhou, Shanghai, Ningbo etc.
Don't you agree that by bringing manufacturing into these less developed provinces will bring the basis for infrastructure development and overall uplift the people by providing well paying jobs? I think so. And at the same time, it will be leaner for the manufacturing facilities.

I'm an avid proponent of redistributing manufacturing facilities from Eastern China to the interior as well as the southern part of the country. Its a win win; for Japanese employers and for Chinese workers in these provinces.

The strategies in Hubei is different.
Big cites like Wuhan/Yichang/Jingzhou/Xiangyang are responsible for most manufacturing.
O my, u mention Shenlongjia which is only for tourism.
Local manufacturing in small towns is mostly for domestic consumption, not competitive because of low-productivity.

I think u still miscalculate the tendency in the interior. Young People no longer want to work in labour-intensive industry, they'd rather set up a Taobao shops to sell local tea or build a guesthouse for tourist. If u travel in Yunnan/Guizhou, u will find that. Yes, labour cost in the interior is smaller, but local young people are trying to have a different road which is not the way their parents once walked.

The goal is very explicit, automatic factories with less workers and higher yield, and more people are into the booming tertiary sector which relies on a booming and highly efficient industry.

 

[opruh]

China going global is a welcome development!

 

[rcrmj]

we have no choice but to move to capital and tech centric industries````a 2-year experienced IT product manager now cost me 22k rmb per month ($3.4K per month) plus all the insurances and house load benefits! it is almost half what it is in the U.K```I say not much time is left us to transform our economy

 

[TaiShang]

Robots replacing human prevails in Guangdong

In the Pearl River Delta region, the phenomenon of replacing workers with robots is becoming very common. Since robots are much more efficient, using them instead of workers is now a "New Norm" in the Pearl River Delta area, signifying that a promising new industry is rising.

"Several years ago, if you recommend using robots to replace workers to those factories, you probably would be kicked out. But any kind of topic related to robots can now attract many companies and factories to participate. The development of the robot industry is embracing unprecedented opportunities," said Li Zexiang, professor of Hong Kong University of Science and Technology.

More: http://bit.ly/1DEwHdA

 

[cirr]

Manufacturing will always be a pillar of the Chinese economy。

We need to improve our productivity、move up the value chain and generally be self-sufficient in every industrial sector of importance。

 

[FairAndUnbiased]

You know that Toyota is opening new facilities in China ; one in Jilin, and the others are mostly around Tianjin area. Toyota is an example of an expansion in production facilities, i suppose the reasons for expansion into these areas is due to the lower wages as compared to more developed areas such as say Guangzhou, Shanghai, Ningbo (mostly coastal urban areas). I do know that Toyota is doing feasibility studies in expanding more facilities in Chongqing as well.

This is just Toyota; not counting Nissan / Infiniti, Honda / Acura, Mitsubishi, Isuzu, Subaru, Mazda, Kawasaki et al.

In fact I encourage this movement; its leaner for our factories, and it distributes wealth in China. A win win situation.

Tianjin has the highest GDP per capita in China, higher than Shanghai. Jilin is overall poorer but Dalian also has very high GDP per capita. The real reason Toyota moves there is to be closer to the market, the same reason Toyota is in the US.

You also think that Chinese don't have that many options. Why would they work for Toyota when a waiter makes almost as much money but works way less?

 

[Economic superpower]

The strategies in Hubei is different.
Big cites like Wuhan/Yichang/Jingzhou/Xiangyang are responsible for most manufacturing.
O my, u mention Shenlongjia which is only for tourism.
Local manufacturing in small towns is mostly for domestic consumption, not competitive because of low-productivity.

I think u still miscalculate the tendency in the interior. Young People no longer want to work in labour-intensive industry, they'd rather set up a Taobao shops to sell local tea or build a guesthouse for tourist. If u travel in Yunnan/Guizhou, u will find that. Yes, labour cost in the interior is smaller, but local young people are trying to have a different road which is not the way their parents once walked.

The goal is very explicit, automatic factories with less workers and higher yield, and more people are into the booming tertiary sector which relies on a booming and highly efficient industry.

View attachment 245610

China is so far ahead of second place.

Incredible dominance!

 

[Not So Good]

Labour cost in India is cheap, but sometimes it's not cheap adding other cost, plus considering the productivity per capita.
View attachment 245592

I think it's mainly because of unemployment in India than lazyness of Indians

 

[AndrewJin]

I think it's mainly because of unemployment in India than lazyness in case of India

Productivity per capita has nothing to do with unemployment.
It's about how many workers produce how much yielding.

 

[Guynextdoor2]

Labour cost in India is cheap, but sometimes it's not cheap adding other cost, plus considering the productivity per capita.
View attachment 245592

That's primarily a supply chain problem

Productivity per capita has nothing to do with unemployment.
It's about how many workers produce how much yielding.

No, the entire chain is mapped. Especially retail productivity is very low and that impacts overall productivity number.

 

[AndrewJin]

That's primarily a supply chain problem



No, the entire chain is mapped. Especially retail productivity is very low and that impacts overall productivity number.

India is nowhere close to East Asia-ASEAN supply chain unless you create a new one in South Asia.
Countries like BD are looking east.

 

[Guynextdoor2]

India is nowhere close to East Asia-ASEAN supply chain unless you create a new one in South Asia.
Countries like BD are looking east.

Go way maggot

 

[AndrewJin]

Go way maggot

Too shameful to have 80-90 average?

 

[Guynextdoor2]

Too shameful to have 80-90 average?

F**ing maggot

 

[terranMarine]

F**ing maggot

Go piss off Indian, this thread is for intellectual debate.