Power Grows for Stricking Chinese workers. Good for China?
The Recent suicides at Foxconn seems to be a watershed moment for Chinese workers who are fed up with the long hours, low pay and crappy cafeteria food. Recent strikes at this company, Honda and KFC recently announced substantial pay raises raises alarm bells for the companies and questions if they can still can produce goods affordability in China. China has already facing a of shortage workers in Guangdong/Shenzhen areas as well while the Chinese government is willing to stand aside and allow these strikes to happen.
While many Western Businesses are afraid this this is just the beginning, I believe that this is no longer business as usual where some Western Company where they can just build a factory in China Workers will come. The Chinese government is already making it harder for business to produce low end, high carbon goods.
While it might sound bad about the ability for China to continue to be the “factory of the world.” I don’t believe it is. The workers mostly strike in places where it is to the East of China where labor intensive industries are starting to get discouraged. China is constantly encouraging Western Companies to set up shop in central or Western China while enticing Western and Chinese Companies to produce value added goods or services. I believe the landscape will be good in China for the next few years the when Chinese government encourages development of the 2nd the 3rd tier cities and can still be the “factory of the world.”
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