The hottest labor and capital situation has not af

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The labor and capital situation has not affected the commitment of plastic enterprises to China

with the rapid rise of China's wages and the frequent labor incidents this summer, foreign businessmen inevitably have doubts about the future of China's manufacturing industry

manufacturing enterprises are undoubtedly experiencing major changes. Labor-intensive and polluting industries are under increasing pressure, and enterprises are more demanding the right to form trade unions independently

but so far, most plastic producers have seen these changes as challenges to overcome, rather than as the beginning of not using China as the preferred manufacturing location

albertovettoretti, President of the Pearl River Delta Branch of the European Chamber of Commerce, said: "I think the media will definitely make a big fuss about this, especially the European media, saying that China's manufacturing industry is approaching the end of dusk, especially in the Pearl River Delta."

he said, but the reality is not so simple. Although costs are rising and labor relations are becoming increasingly complex, in China, more developed regions such as Guangdong and Shanghai still have significant advantages over other parts of China and overseas countries in terms of supply chain and labor force

he said: "European enterprises are indeed looking for other places in China or other countries... But in fact, not many enterprises have really moved away from the Pearl River Delta."

take gwplasticsinc The company's factory in Dongguan, Guangdong Province, for example, has seen a sharp rise in wages since the local government raised the minimum wage by 20% to 920 yuan (about $315)

Edboyden, general manager of the company, said that although the wages of factory workers have increased a lot, resulting in a corresponding increase in the total cost of GW, this situation is still completely manageable

boyden said: "this should have had a little impact on us, but our degree of automation is high, so the impact is not as big as Foxconn, which is highly labor-intensive in production." He mentioned that Taiwan's electronics manufacturer Foxconn International Holdings decided to move its factory with tens of thousands of people from Shenzhen to a lower cost inland city in China

Benbouchard, vice president of international market development of GW company, said that for GW, maintaining the stability of labor force is more important than controlling costs

he said that the company also adopted the same practice in North America, exporting parts from molding plants in Texas and Arizona to Mexico

he said, "the market we live in does not require us to move our production to places with lower costs such as Indonesia or Vietnam. The rise in costs has no impact on the viability of our company, and there is no need to raise prices to customers."

GW is considering expanding its investment in China and will build a second factory near Shanghai

some large processing enterprises in China also said 4 Digital multimeter (or other types of multimeter 1, metal printhead table up to 450 ℃), they have well coped with the problem of salary rise by improving automation and other strategies

the headquarters and the largest production base of Liansu Group Holdings, the plastic pipe manufacturer of China's largest rotary friction and wear testing machine, are located in Foshan, Guangdong

Huang Lianxi, chairman of the company, said that Liansu once faced the pressure of salary rise, but it successfully overcame it through automation. At the same time, it also used its scale advantage to obtain cheap raw materials, and laid off more than 1000 full-time workers with low skills, replacing them with talents recommended by external employment agencies

Huang Lianxi said that for enterprises that value China's domestic market, the rise in labor costs is not a very important factor. Huang Lianxi said that due to the rapid development of the construction market, Liansu also raised prices to a certain extent to pass on the pressure of rising costs

he said that if you take into account the factors of having a more efficient supply chain and being located in developed coastal areas, you will find that the total cost in places like Guangdong is not much higher than that in other parts of China

challenges continue

nevertheless, with the increasingly severe manufacturing environment in China, enterprises have begun to look for new production sites

Singapore mold manufacturer D. recently built a factory in Ho Chi Minh City, Vietnam, one of the reasons is that some customers do not want to rely entirely on the manufacturing base in China. At present, the company also has a factory in China

expresstech also predicts that China's costs will rise sharply, although the gap between China and Vietnam is not too large at present. Leongyokeming, general manager of the company, said: "in the long run, Vietnam will have an advantage in costs."

however, some other companies said that they had taken other measures to reduce costs and achieved the expected results

friend Mold Co., Ltd. in Hong Kong has also considered whether to build a mold factory in Yunnan Province, which is located in the southwest region, but found that the local infrastructure is quite scarce, said u, its business operation director

he said that after the salary increased by another 15% this year, the company began to focus on improving the production efficiency of factories in South China

he said, "like factories in the United States, we have increased the number of machines, reduced manpower, and purchased new management software."

he said that the friend mold company had about 1000 employees three years ago, but now it has only 850 employees, but its sales volume is higher than that in 2007. Among them, the orders from customers in North America have increased, because these customers want to reduce the cost of molds, and their business is still booming even during the economic crisis

other export-oriented Chinese molding manufacturers have also reduced manpower and improved automation

for example, Hong Kong's Yada mold design and Manufacturing Co., Ltd. said that its sales remained stable in the past two years after reducing the number of employees in Chinese factories, which can be inserted into police and military bulletproof vests, from 1000 to 800

many such export-oriented plastic manufacturers in Hong Kong have been hit hard by the economic crisis, and many factories have closed down one after another

in addition to cost pressures, manufacturing enterprises are also facing increasing environmental challenges

vettoretti of the European Chamber of Commerce said that with the increase of the government's efforts to control pollution, it has become increasingly difficult to obtain environmental permits in some cities in southern China. He said that over time, this may force enterprises to move out of these places

he said: "the environmental departments are increasingly strengthening the rectification, and the places where these enterprises are located may not be able to obtain permits and pass environmental approvals."

CEO jackyeung of elite enterprise Holding Co., Ltd. said that the Chinese government is actively encouraging the development of inland provinces and the upgrading of manufacturing in coastal areas. This long-term trend can not be ignored by plastic enterprises

elite companies headquartered in Hong Kong recently built injection molding plants in Mexico and inland China, hoping to avoid the pressure of rising costs in China's coastal areas

according to observers, the sudden labor strike in the automotive industry in South China this summer will eventually make labor relations more complicated

jonathanissacs, a lawyer from Baker McKinsey international law firm in Hong Kong who specializes in Chinese labor issues, said that what embarrassed the all China Federation of trade unions, a trade union approved by the state, was that some strikes were initiated by workers who were not members of the trade union alone, with the purpose of expanding their own trade union activities, including in foreign-funded companies

he said at a forum held by the American Chamber of Commerce in July that McKinsey's analysis showed that Japanese and Taiwan enterprises accounted for a "high proportion" of the strike this summer

he said that although the Chinese government did not disclose specific figures, according to media analysis, about 40% of strikes and riots occurred in Japanese and Taiwan companies

however, no matter from which country or region, any enterprise may face increasingly complex labor relations, not only in South China

for example, according to China Labor News in Hong Kong, the continuous strike involving 70000 workers in 73 factories in Dalian, Liaoning Province this summer was declared to have subsided after the workers were given a 34% wage increase

the reason why wages rise is that the Chinese government hopes to narrow the gap between the rich and the poor in China on the one hand, and to improve the purchasing power of domestic consumers on the other hand. At present, the monthly salary of ordinary factory workers in Guangdong Province is about 1500 yuan (US $220)

the government takes a stronger stance on wages. A major government policy advisory body in China has proposed to raise wages by at least 20% a year in the next five years

according to Hong Kong's South China Morning Post, the Guangdong provincial government issued regulations this summer to allow collective bargaining in the event of disputes, but some of its provisions, such as allowing labor representatives to enter the board of directors of enterprises, have attracted opposition from Hong Kong manufacturing enterprises, so collective bargaining is obviously impossible at present

Isaac said that the Chinese government is taking Guangdong as a pilot site to solve labor and capital problems, which will be rolled out nationwide if feasible

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