India Wages and Currency Beckon Manufacturers from China

[Korean]

India Wages and Currency Beckon Manufacturers from China | 2point6billion.com - Foreign Direct Investment in Asia

India Wages and Currency Beckon Manufacturers from China
Posted on Friday, June 1, 2012 by 2point6billion.com

U.S.-India bilateral trade now same level as U.S.-China trade in 1997 and increasing

Jun. 1 – India is beginning to look increasingly attractive as a destination for foreign investors as concerns over a lack of reform direction in China, coupled with increasing labor costs and a strengthening RMB position are placing some China based businesses under financial pressures. This was a point made earlier this week by Davide Cucino, president of the European Union Chamber of Commerce in China in its annual report – citing that 20 percent of its member companies surveyed said they were considering exiting the China market.

But for that 20 percent, what are the options? Interestingly, India looks increasingly likely to be the answer. Unlike China, India is getting reforms into place, and is opening up its markets. It has a large and cheaply available workforce, and the rupee is relatively low against the U.S. dollar and Euro. Just the currency situation alone means your dollar value goes further in India, whereas in China it is diminishing. India in fact has been making considerable progress – bilateral trade with the EU reached a record high of US$110 billion last year, an increase of 22 percent. Of that, exports from India to the EU also increased – demonstrating that even with the difficulties in the European markets, firms there are buying more Indian manufactured products.

EU Chamber Warns of China Investment Withdrawals | China Briefing News

EU Chamber Warns of China Investment Withdrawals
Posted on May 29, 2012 by China Briefing
May 29 – Davide Cucino, president of the European Union Chamber of Commerce in China, has warned that the investment climate among European businesses in China is becoming increasingly negative.

Citing stalled reforms and perceived discrimination, the Chamber – in conjunction with Roland Berger Strategy Consultants – found through a recently conducted survey that problems with market access, regulatory barriers and rising costs are all cause for concern. To illustrate that point, just over one-fifth of some 557 EuroCham members that responded to the survey reported that they are considering moving investments out of China.

“There are indications from this survey that as reform continues to stall and costs rise, a previously reliable stream of FDI may slow and planned investments may be shifted to other emerging markets,” the chamber said. Foreign direct investment into China by the European Union dropped 28 percent year-on-year over the first four months of 2012, according to the Chinese Ministry of Commerce. The Ministry has blamed the drop solely on the Sovereign Debt Crisis.

The European Union, while acknowledging the impact of the financial crisis in Europe on investments in China, nonetheless stressed that the overall investment environment in China has been deteriorating.

China-Exodus has begun, and countries like India and Vietnam stand to gain the most from it.

 

[oct605032048]

That won't save Korea however.

 

[Korean]

That won't save Korea however.

When North Korea collapses and is taken over by ROK, those foreign manufacturers would die to move into North Korea, because they have not only the wage rate of a 3rd world country(for the first decade or two anyway), but the FTA benefits with both the US and EU.

 

[oct605032048]

When North Korea collapses and is taken over by ROK, those foreign manufacturers would die to move into North Korea, because they have not only the wage rate of a 3rd world country(for the first decade or two anyway), but the FTA benefits with both the US and EU.

They'll die then. Some already died isn't it? Remember the economic zone in 开成, how much lost did many SKorean companies get from your north brother?

 

[northeast]

When North Korea collapses and is taken over by ROK, those foreign manufacturers would die to move into North Korea, because they have not only the wage rate of a 3rd world country(for the first decade or two anyway), but the FTA benefits with both the US and EU.

We'll take over it，not you.

 

[Korean]

We'll take over it，not you.

Two problems.

1. China always recognized and had a diplomatic relation with North Korea. Thus China cannot takeover another sovereign country which China acknowledges not to be a part of China. This is not a problem for the ROK and US since neither acknowledged North Korea as a sovereign country.

2. Any Chinese military action may cost the lives of half a million PLA soldiers or more and destroy Chinese economy as the all export/import shipping from Shanghai and Yellow Sea is blocked. In addition, Chinese exports will be banned in the West during the duration of war.

 

[oct605032048]

Are you stupid? No one is taking Korea. Korea already stood 60 years against SKorea and US's invasion for 60 years. It will stand in the future, with full support from China.

If you think economic block will destroy Korea then keep doing it.

 

[northeast]

Two problems.

1. China always recognized and had a diplomatic relation with North Korea. Thus China cannot takeover another sovereign country which China acknowledges not to be a part of China. This is not a problem for the ROK and US since neither acknowledged North Korea as a sovereign country.

2. Any Chinese military action may cost the lives of half a million PLA soldiers or more and destroy Chinese economy as the all export/import shipping from Shanghai and Yellow Sea is blocked. In addition, Chinese exports will be banned in the West during the duration of war.

In 10 years，Our GDP would be equal to the size europe+USA，nobody would dare to ban our exports.
And we'll give a new pro-china regime to NK if kim's kingdom fell.

 

[oct605032048]

And there is no need to send out troops to Korea. Just missiles and fighters and UAVs. That would be enough to deter SKOrea clowns and their boss' evil plan.

 

[Korean]

And there is no need to send out troops to Korea. Just missiles

And receive return fire of missiles.

fighters and UAVs.

They get shot down. Sending jets and UAVs into the area controlled by the enemy is a bad idea.

That would be enough

It will not be enough as they are ready to go to an all out war and kill another half to a million PLA troops if necessary. They have been drilling for this for the past 60 years.

 

[Fanling Monk]

Two problems.

1. China always recognized and had a diplomatic relation with North Korea. Thus China cannot takeover another sovereign country which China acknowledges not to be a part of China. This is not a problem for the ROK and US since neither acknowledged North Korea as a sovereign country.

2. Any Chinese military action may cost the lives of half a million PLA soldiers or more and destroy Chinese economy as the all export/import shipping from Shanghai and Yellow Sea is blocked. In addition, Chinese exports will be banned in the West during the duration of war.

Kim Jong-nam, the older half of Kim Jong-un is waiting anxiously to take over if the North failed. No need for China to be actual involved.

Asia Times Online :: Hard truths from Pyongyang's prodigal son

 

[Korean]

In 10 years，Our GDP would be equal to the size europe+USA

No. You already see Chinese growth slowing down, down to some 6% by external estimates and slowing.

nobody would dare to ban our exports.

China won't be an export power by then due to high wages, and the lack of world-class domestic exporters to take the place of foreign manufacturers who leave China.

And we'll give a new pro-china regime to NK if kim's kingdom fell.

In reality, you will see a land populated by the most anti-China people(former North Koreans) in the world, and some US airbases.

Kim Jong-nam, the older half of Kim Jong-un is waiting anxiously to take over if the North failed.

Not only does Kim Jong Nam have no power base in North Korea, he supports the ROK takeover. One thing striking about Kim Jong Nam is the fact that he uses Southern terms when describing ROK and North Korea, not NK terms, and prophets the doomsday predictions for the NK regime.

 

[Fanling Monk]

Not only does Kim Jong Nam have no power base in North Korea, he supports the ROK takeover. One thing striking about Kim Jong Nam is the fact that he uses Southern terms when describing ROK and North Korea, not NK terms, and prophets the doomsday predictions for the NK regime.

Rest assure he'll change his tunes when China installs him as the de facto boss.

Back to the topic

India can only take over some of China's manufacturing jobs if she would eases her strict labor laws, liberalizes foreign ownership requirements and have physical/educational infrastructure ready which will be years away.

 

[Korean]

Rest assure he'll change his tunes when China installs him as the de facto boss.

He knows better than to dream a future other than a North Korea taken over by the ROK. Beside, he has a comfortable life, why risk all that by getting involved in the North Korean business which endangers his and his family's life?

India can only take over some of China's manufacturing jobs if she would eases her strict labor laws, liberalizes foreign ownership requirements and have physical/educational infrastructure ready which will be years away.

You overestimate the quality of labor used by foreign manufacturers in China. Those factory jobs can be done by minimally educated people; afterall, it's the functionally illiterate migrant workers manning China's factory floors, and Honda taught functionally illiterate workers in Alabama how to assemble Odysseys using pictures when they found out the new hires couldn't read instruction manuals.

The only thing that the Chinese has over Vietnamese and Indian workers maybe that Chinese work harder and longer than the workers in Southeast and South Asia, but that becomes pointless when the Chinese wages rise so much.

 

[oct605032048]

Koreans both the real and the South are arrogant on the outside while chicken in their inner heart.

Why can't you accept the truth that your country is nothing but a military depot and comfort stations for the US troops?

Why can't you accept the truth that all the 60 years your army did nothing but chickened back of the US?

Until recently your president does not have the power to command SKorea Army.