Several multinational companies will shift their production lines from China to Southeast Asian countries in near future, according to experts.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
In addition to the minimum wage, enterprises in China have to pay towards insurance and welfare costs for their workers, which further raises the cost of labour.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
For the last two years, annual wage rise in Chinese manufacturing industries has been more than 20 percent, which has considerably brought down the profit margins of enterprises.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
Owing to rising costs, the market share of some of China’s traditional labour-intensive products has decreased significantly in Europe, Japan and the US.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
If the trend continues, more and more multinational companies will relocate their production units to Southeast Asian countries, according to experts.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
They believe that to stop the trend, industrial upgrading is very necessary and it could even determine the success or failure of industry’s structural adjustment process.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
On the whole, experts aver that it is currently just the beginning for “Made in China” to become more expensive, and rising cost will be a long-term trend in China.
Several multinational companies will shift their production lines from China to Southeast Asian countries #
Fibre2fashion News Desk - China