In biggest layoff in China, coal company axes 100,000 workers

[Aepsilons]

India is not attractive compared to ASEAN.
ASEAN has proximity to East Asia' manufacturing chain.
Way better infra and educated labour with discipline and work ethics.

As far as I see, most labour intensive factories which move away from costal China, they either go to interior of China or to ASEAN countries. Cheap labour is not and alway not the first consideration, how much u can get from labour is. If u pay $200 per month for an Indian worker with only 1/4 of productivity of a worker from Thailand, why should u move there? Plus, u have to consider the abysmal infra and commerce-unfriendly environment. Most companies which take in part in the so-called Make-in-India are only eying their domestic market as opposed to the world market.

Bro, it just wont be practical to maintain the large manufacturing operations in China due to the cost of Chinese labor now. Chinese GDP per capital is now reaching over $7500.

I agree with you that ASEAN is receiving most of the restructuring investments. But so is also India, Bangladesh, Sri Lanka. Even robotics won't solve China's issue due to the shear cost. That's one of the reasons why Japan (which is a master of robotic-based mass production) has preferred to offshore manufacturing abroad due to the cost of labor (man and robotics).

In the end, bro, its just all about $$$$.

 

[AndrewJin]

Let alone “Five Benefit, One Insurance” that is mandatory for every employers in China.

Not Five benefit, one insurance dude.
But 5 insurances and one housing fund
1，medical insurance
2%, company 8%
2, pension
8%, company20%
3, unemployment insurance
1% company2%
4, occupational injury insurance
0%, company 1%
5, maternity insurance
0%, company 1%
6. housing fund
5-20%, company pays the same amount
For example, u pay 1000yuan as housing fund per month, then your company will also pay 1000yuan.
(each province different, rich company higher)

 

[Dungeness]

Not Five benefit, one insurance dude.
But 5 insurances and one housing fund
1，medical insurance
2%, company 8%
2, pension
8%, company20%
3, unemployment insurance
1% company2%
4, occupational injury insurance
0%, company 1%
5, maternity insurance
0%, company 1%
6. housing fund
5-20%, company pays the same amount
For example, u pay 1000yuan as housing fund per month, then your company will also pay 1000yuan.
(each province different, rich company higher)

Thanks for correction.

 

[AndrewJin]

Bro, it just wont be practical to maintain the large manufacturing operations in China due to the cost of Chinese labor now. Chinese GDP per capital is now reaching over $7500.

I agree with you that ASEAN is receiving most of the restructuring investments. But so is also India, Bangladesh, Sri Lanka. Even robotics won't solve China's issue due to the shear cost. That's one of the reasons why Japan (which is a master of robotic-based mass production) has preferred to offshore manufacturing abroad due to the cost of labor (man and robotics).

In the end, bro, its just all about $$$$.

Labour-tensive factories in China are of course on the decline.
But if wages are always the number one consideration, foreign companies should have moved out long ago.
The most competitive are still here, less competitive are moving out.
Foxcoon is TO build assembling lines in India and is now building cloud industry park in Guizhou, one of the poorest province.

I'm not saying India won't have manufacturing, but have u noticed that we are now at a critical stage which is like the beginning of steamed machines replacing human. That's why China is doing everything to transform her economic structure and willingly accept the new normals. Conservatives will always be conservative, but at least in East Asia, people eye the future.

July Wages: China ($764), Mexico ($637), Russia ($508) | Bloomberg

 

[Echo_419]

Good news。

This means China is using less and less coal the burning of which happens to be the biggest source of pollution in China。

I guess countries that sell massive quantity of coal to China also face redundancy of labour。

India should pick up right where China left off。

#Obsessioncontinues

 

[AndrewJin]

Thanks for correction.

Now we are planning to buy a new house in the suburb, we can use our housing fund and pay very little ourselves. (my father's school has very good housing fund policy)
If u don't use it, the money will return to you with interests when u retire.
(huge money if u don't use it, that's one of the reasons of China's tourism boom of pensioners)

 

[TaiShang]

Of course, I hope China can be slower since from 2015 to 2017 China's GDP will add another new India.

India is not so attractive compared to ASEAN.
ASEAN has proximity to East Asia' manufacturing chain.
Way better infra and educated labour with discipline and work ethics.
U have to look at real number and real investments, not just those crazy media propaganda.

As far as I see, most labour intensive factories which move away from costal China, they either go to interior of China or to ASEAN countries. Cheap labour is not and alway not the first consideration, how much u can get from labour is. If u pay $200 per month for an Indian worker with only 1/4 of productivity of a worker from Thailand, why should u move there? Plus, u have to consider the abysmal infra and commerce-unfriendly environment. Most companies which take in part in the so-called Make-in-India are only eying their domestic market as opposed to the world market.

For China, asean, central Asia, eastern Europe and Africa are key markets. For manufacturing, it is asean. India is nowhere to seen.

And numbers support this observation.



For

India is good only for Japanese companies that oftentimes do not invest in India, but elsewhere. Wisely.

 

[black-hawk_101]

Company chairman Wang Zhikui said the job cut was a measure adopted to "stop bleeding" the company. It also plans to sell its non-coal related businesses to help pay off its debts, Wang said. (Image for representation)


BEIJING: A coal company announced the biggest layoff seen in China in recent years as it is set to relieve 100,000 workers accounting for 40% of its labour force.

The announcement came in the midst of Chinese president Xi Jinping's ongoing tour to the United States, where he assured politicians and businessmen that China's economy will achieve the targeted 7% growth in gross domestic product.

Much of China's clout in the US is based on its economic achievements in past years. But the Chinese economy has slid from the earlier 10% growth level to the present situation where it is struggling to achieve 7%.

READ ALSO: Chinese military to layoff 1.70 lakh officers: Report

Heilongjiang Longmay Mining Holding Group Co Ltd. said it was taking action to reduce recurring losses, and will bring about the labour cut in the next three months. It has 240,000 workers on the rolls at present.
Company chairman Wang Zhikui said the job cut was a measure adopted to "stop bleeding" the company. It also plans to sell its non-coal related businesses to help pay off its debts, Wang said.


"Personnel is probably its largest cost," the State media quoted Deng Shun, an analyst at Shanghai-based energy consultancy ICIS C1 Energy, as saying. "Actually many traditional State-owned coal enterprises are facing the same kind of problem. It has become more severe as the industry remains on a downward trend," Deng said.

I think they should call upon the EU and Americans to automate their coal and other industries so that they can reduce their cost of operations. Boosting Exports

But Chinese Govt. should invest more and more in Pakistan. $45 Billions should be increased to about $120 Billions.

 

[XiaoYaoZi backups]

I think they should call upon the EU and Americans to automate their coal and other industries so that they can reduce their cost of operations. Boosting Exports

But Chinese Govt. should invest more and more in Pakistan. $45 Billions should be increased to about $120 Billions.

We are upgrading our industry, the equipments for mining are being automatized, so these outdated coalpits are closed.

 

[jkroo]

Yes, India has more inclusive growth, the most successful democracy with highest life expectancy of Asia.
India or China: Which Asian Giant Has More Inclusive Growth?

Let's hope India consumes more coal and steel!
13 out of world's top 20 polluted cities in India, only three in China | Page 3

It is a trick buddy. Look, India in discussion again and succeed, again. Growth rate is anything!

Ill-minded people will never succeed. Just have fun.

 

[Srinivas]

Good news。

This means China is using less and less coal the burning of which happens to be the biggest source of pollution in China。

I guess countries that sell massive quantity of coal to China also face redundancy of labour。

India should pick up right where China left off。

You are correct !!

India has some very important lessons with chinese experiences in the past two decades!

 

[cirr]

Not good news for the 100,000 newly unemployed, however. Lets hope they were able to get jobs.

Don't worry。According to many western reports，China is short of man power due to demographic reasons。

These miners will soon find better paid and safer jobs。

And their families are kissing goodbye to sleepless nights。

#Obsessioncontinues

India is hardly a manufacturing powerhouse，yet it is already the world's most polluted country。

How do you propose to solve India's energy problem？

By burning expensive oil and natural gas？

 

[Echo_419]

Don't worry。According to many western reports，China is short of man power due to demographic reasons。

These miners will soon find better paid and safer jobs。

And their families are kissing goodbye to sleepless nights。



India is hardly a manufacturing powerhouse，yet it is already the world's most polluted country。

How do you propose to solve India's energy problem？

By burning expensive oil and natural gas？

The govt of India has set a ambitious renewable energy goal,increasing nuclear power & increasing the efficiency of existing thermal power plants.Also the new gift has announced that they are going to increase the forest cover.
Regarding your 1st point
Most of our pollution comes from Agriculture & Road transportation ( heavy trucks),but steps have been initiated to correct this buy employing solar power in Agriculture & increasing the role of Railways & waterways in transportation

 

[Dungeness]

The govt of India has set a ambitious renewable energy goal,increasing nuclear power & increasing the efficiency of existing thermal power plants.Also the new gift has announced that they are going to increase the forest cover.
Regarding your 1st point
Most of our pollution comes from Agriculture & Road transportation ( heavy trucks),but steps have been initiated to correct this buy employing solar power in Agriculture & increasing the role of Railways & waterways in transportation

I have no doubt that your government has a grandiose plan for it, just like for everything else. The problem is your ability to execute the plan, which Indian government is not known for. Take the example of your MMRCA project, since 2001 first RFI issued, it has been cool 14 years past, and it is still up in the air. As a tax payer, don't you feel tired, lied to, and fooled? Don't you guy sense something is wrong here? Have you guys ever thought about the reason why It takes you guys longer to buy a fighter plane than China to build one?

So instead of defending your government's inability in the name of "National Honor", think deep, work hard and hopefully elect a more responsible government next time around.

India is a great nation with great people and rich culture, and I am sure it will rise as a world power again.

 

[AndrewJin]

I have no doubt that your government has a grandiose plan for it, just like for everything else. The problem is your ability to execute the plan, which Indian government is not known for. Take the example of your MMRCA project, since 2001 first RFI issued, it has been cool 14 years past, and it is still up in the air. As a tax payer, don't you feel tired, lied to, and fooled? Don't you guy sense something is wrong here? Have you guys ever thought about the reason why It takes you guys longer to buy a fighter plane than China to build one?

So instead of defending your government's inability in the name of "National Honor", think deep, work hard and hopefully elect a more responsible government next time around.

India is a great nation with great people and rich culture, and I am sure it will rise as a world power again.

I can't help think of that feasibility plan I heard of years ago.

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