Quote:
Originally Posted by HansTWN
But you will be surprised how quickly factories move, in spite of all the obvious problems involved. In 2-3 years 50-80% of the electronics may be gone from Shenzhen. Transportation inefficiencies pale compared to labor costs and local authorities usually work very quickly to remove those inefficiencies when they want to attract new factories to their areas. I have seen it happen before. And that is not a bad thing. Other areas in China and other countries are in desperate need of such jobs which will help to pull these areas out of poverty. Just as they have helped develop the coastal areas in Southern China.
|
Yes, the story touched on factories moving inland. It's not that moving would be surprising. There will be costs involved, is all. Of course, with Chinese cities competing for jobs, companies might not have to eat all the costs. (Happens all over the world with tax breaks, infrastructure contributions, bonds, cheap loans and such.)