China may be losing its edge, survey says
Rising costs, product piracy could be taking its toll on China's competitiveness, according to American Chamber of Commerce in Shanghai.
December 14 2007: 8:32 AM EST
SHANGHAI, China (AP) -- China may be losing its competitive advantage, mainly because of rising costs, according to a survey of companies compiled by the American Chamber of Commerce in Shanghai.
Rampant product piracy was another persistent problem highlighted in a report released Friday that was based on a survey of the group's 1,600 corporate members.
"Some companies mentioned plans to move offshore to India or Vietnam," said Norwell Coquillard, president of Cargill Investments China, an investment holding company of agribusiness giant Cargill Inc.
Still, he noted that most companies with operations in China were still planning to expand capacity on the Chinese mainland, often while moving factories and offices inland to smaller cities where costs are lower.
For many U.S. and other foreign companies, finding, paying for and retaining good employees remains the biggest challenge, the report said.
"More investment has come in and stretched the supply of talent," said Stephanie Liu, human resources director in the Asia Pacific for Armstrong World Industries, a maker of flooring and building products. "There's no sign of easing in the short term," she said.
Meanwhile, a new labor law, due to take effect next year, has increased uncertainties over hiring and firing practices.
The Labor Contract Law, which takes effect Jan. 1, gives employees who have worked at a company for more than 10 years the right to sign contracts protecting them from being fired without a legitimate reason.
Some companies worry that the law might restore the "iron rice bowl" of lifetime employment practiced by China's state sector during the era of central planning that followed the 1949 communist revolution, said Kent Kedl, general manager of the consulting firm Technomic Asia.
But Kedl said most U.S. companies had little to fear because their employment policies were general in line with international standards, unlike those of smaller local companies that often dismiss workers en masse to avoid paying bonuses, among other things.
"We don't foresee a huge impact here," he said.
The report also said that the recent spate of product recalls of products ranging from tires to toothpaste due to safety and quality concerns is prompting U.S. businesses to become much more vigilant over how their products are made.
Virtually all the companies surveyed were raising standards, stepping up inspections and requiring more detailed specifications, though few said they would stop using products or materials made in China.
Problems with piracy of technology and products remained more or less unchanged from earlier surveys. Such problems are a perennial headache for both domestic and foreign companies operating in China: U.S. businesses say they lose billions of dollars each year due to the lack of effective enforcement of copyrights, patents and trademarks.
Despite the difficulties of doing business in China's unpredictable, fast changing markets, most companies said they were profitable in 2007 and that their profitability improved.
"Business performance and financial results show many firms are realizing the market potential that China has long promised U.S. companies," the report said.
- Re: China may be losing its edge, survey saysposted on 12/14/2007
This is a lousy report. Is China "losing" its edge? Since when does China has it? Suppose there used to be such an edge, at what cost does China pay to get it?
- posted on 12/15/2007
在经济全球化的今天,世界经济有什么特点呢?
在国与国之间,经济要素中的资本,技术,设备,原材料等是可移动的, 而土地,劳动力是不可移动的.
国际贸易的本质是比较成本优势. 由于土地和劳动力的不可移动, 世界经济实际上是以土地和劳动力为硬约束条件形成生产中心.
中国的劳动力是便宜且丰富的, 不仅有来自农村的体力老动力,还有大量大学生智力劳动力,更有研发嫦娥,大飞机的高科技劳动力.
中国作为政治稳定的大国, 市场经济制度稳定成熟,交通发达,电力供应充足。 资本,技术,设备,原材料不可避免地要向中国移动。在理想条件下, 只有等中国的劳动力成本达到世界平均水平时,这种移动才会达到动态平衡。 而这种条件下,中国的综合实力该有多强?! 因为中国的人口是美国的五倍!
总之,在经济全球化的和平年代,在教育开放,知识与思想渗透很容易的网络时代, 人的简单数量就成为国家实力的最重要的因素.
我完全相信,给予一定的时间, 在综合实力方面,中国一定会超过美国成为世界上最强大的国家!
moab wrote:
This is a lousy report. Is China "losing" its edge? Since when does China has it? Suppose there used to be such an edge, at what cost does China pay to get it?
一个年轻的女孩子, 需要付出什么才美丽动人吗?
在冷战结束后的全球经济化时代,中国正是这样一个天生丽质,楚楚动人的女孩子.:)
不能慧眼识中国是你的错. :))
- Re: China may be losing its edge, survey saysposted on 12/15/2007
不能客观地评价中国更错。
abc wrote:
一个年轻的女孩子, 需要付出什么才美丽动人吗?
在冷战结束后的全球经济化时代,中国正是这样一个天生丽质,楚楚动人的女孩子.:)
不能慧眼识中国是你的错. :))
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