Deutche Welle reports that a surprising number of
German companies are shifting all or part of their Chinese operations elsewhere. A transformation under way in China is making other, lower-wage countries much more attractive.
Nearly a quarter of German companies operating in China are planning to relocate all or part of their business out of the Asian country, according to a study released Tuesday by the German Chamber of Commerce in China.
The annual survey of 526 member firms in China found that 23% of them have either already decided to withdraw production capacity from the country or are considering it. A third of those companies have planned to leave China entirely.
The rest say they will transfer part of their business and production overseas, largely to lower-cost countries in Asia.
Operating costs in China have been rising as the country seeks to rebalance its economy from an export and investment-led model to one driven by services and consumer spending.
Photo - Chinese workers man the line at a VW plant in Shanghai.
6 comments:
And in a couple of decades, under the shaky assumption there's much left of human society to buy "goods", the corporatists will finally be forced to dragoon penguins to work for two cups of fish offal per day. This is known as the logical conclusion and the end of reason. The urge to save two cents per unit dominates corporate thinking, and let's face it, Germany is the neoliberal heart of the EU (the European equivalent to US world hegemony) that funds the European Central Bank which runs Greece as a private affair of austerity and loan sharking. Interest upon interest payment until the host dies.
Of course, Macron is gaining on the backstretch pour France what with Merkel retiring, shooting down his real gilets jaunes, and imposing strict neoliberalism on France. The French kill off/seriously injure their own people during protests and nobody utters a peep; in Hong Kong a single man gets killed, and the entire world recoils in horror with Trump et al, Dem and Repugs, trumpeting human rights abuses and with anti-commie jargon in full flight even as US cops murder a thousand black people a year. The Chinese have been remarkably forgiving of protests in HK; bring in Macron as tactical team leader and he'd rubber bullet the lot of them from point blank range and cause lifetime injuries in the thousands.
No wonder we can, with a straight face in the West, praise military and autocrat takeovers in Latin America and around the world. We will not see our forests for the trees and lie to ourselves religiously.
BM
Well put, BM. There are turbulent waters ahead and we're being steered to the shoals.
A at 13 Nov, 1:35 p.m. you got that right.
it is also the reason governments ought not to give any corporation tax incentives to set up business in their area. they will leave and it will cause harm.
of course there is that old saying, what goes around, comes around and China has now seen what happens. Doesn't look good on them, because there will be people who loose their jobs just as we did in Canada and that isn't to be wished on anyone.
I think its more than just the wages, it may also be increasing interest in environmental issues in China.
e.a.f.
" it may also be increasing interest in environmental issues in China."
So the lower-than-China-wage countries will be better?
Trying to put a positive spin on the capitalist race to the bottom?
don't know how you came to that conclusion, based on what I wrote. Let me go over that again, so you understand. People and the government in China are becoming more concerned about the environment. This may cause companies to leave china for countries which have less strigent environmental laws and are willing to turn a blind eye to environmental issues. The government of China has signed on to environmental agreements and is interested in meeting those targets. these corporations may not be, hence their departure.
Many in China's main cities are returning to the use of their bikes. its faster, given the heavy traffic and doesn't create smog.
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