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Chinese PC makers face crisis as wages rise

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posted on Sep, 27 2011 @ 08:24 PM
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Chinese PC makers face crisis as wages rise


www.thinq.co.uk

Chinese PC component suppliers face a bankruptcy crisis after a number of provinces in the country are set to raise minimum wages in an attempt to counter domestic inflation.

...is set to raise its minimum wage on 1st January, 2012 - prompting speculation of a wave of bankruptcies among smaller suppliers. Manufacturing in the city has also been affected by electricity shortages and a shortfall in labour of as much as 20 per cent.
(visit the link for the full news article)




posted on Sep, 27 2011 @ 08:24 PM
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My how the worm turns...,

Here we are, fretting over the continuing dominance of China in the global financial picture... but what we are not paying attention to the fact that it may soon behoove many Americans to illegally immigrate to China for a job!

OK, so that was hyperbole...

Seriously though, it seems clear that the nature and performance of the world's economy is different from the perspective of the financiers and high rollers, and the people who actually toil to produce. I bet Mao would have a heart attack!


Local companies are reported to be unable to raise funds from mainstream banks and are turning to other lenders charging interest of as much as 36 per cent.


You know where that is gonna go... and the PRC will have to face up to the fact that the business model the banks engender is the root cause of the problem, not the people, or classes, or anything short of letting a bank control your economy.


Wage rises are part of the Chinese leadership's '125' policy, the 12th five-year plan, adopted in 2010. Under the policy, average incomes are set to rise above 13 per cent for each of the next five years minimum, leading to an overall rise of 84 per cent on 2010 wages. But the net effect of the policy within the IT industry could be to see business concentrated in the hands of the few biggest players.


Good luck explaining how this fits into the communist doctrine.

Sorry folk, it's been a long night.

www.thinq.co.uk
(visit the link for the full news article)



posted on Sep, 27 2011 @ 08:30 PM
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It's pretty much how globalized corporations work.

They move in, use up whatever they can, then when the standard of living is too high they have to move to other locations that are willing to do things cheaper.

If things keep going this way, I expect India and Central Africa to be where investment will start going. If India can solve it's over-regulation issues, and Central Africa can find political stability, there would be a lot more investment in those areas.



posted on Sep, 27 2011 @ 08:31 PM
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ha it shows that China is nothing more than a pathetic little nation that is suffering from a ailing world economy



posted on Sep, 27 2011 @ 08:32 PM
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reply to post by muzzleflash
 


I heard from somewhere that if the whole economy collapse central africa will be the first to recover



posted on Sep, 27 2011 @ 08:35 PM
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Could also be a means to an end for smaller manufacturers...

A predatory scheme to eliminate the small guys... Many on Wall Street would be envious of.

Ah, if we could only get away with that here!




posted on Sep, 27 2011 @ 08:45 PM
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A year and a half ago or there a bouts I said this would come to pass. At the time I was jeered and scoffed at.



posted on Sep, 27 2011 @ 08:47 PM
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Originally posted by SLAYER69
A year and a half ago or there a bouts I said this would come to pass. At the time I was jeered and scoffed at.


It's an exclusive club..... as an ATS member, you should strive to grow accustomed to it.



posted on Sep, 27 2011 @ 08:47 PM
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Originally posted by SLAYER69
A year and a half ago or there a bouts I said this would come to pass. At the time I was jeered and scoffed at.


You have the gift of prophecy SLAYER... Congrats.





posted on Sep, 27 2011 @ 08:49 PM
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reply to post by SLAYER69
 


I was also against the idea China will be an epic fail. However it seems sadly people would rather be all too willing to bow down before China



posted on Sep, 27 2011 @ 08:51 PM
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Just to clarify:

1) It is not possible to illegally immigrate to China. People do sneak in from neighboring countries but they are usually jailed or deported. China is a non-immgration country. No visa, no entry.Period.

2) For the last time, China is not Communist. They are a hybrid Socialist model now which embraces elements of a free-market economy.

3) Yes, the market will likely become dominated by a few large players,both domestic and foreign. The government will step in and take over the operations of any key players who are too important to fail. Nothing wrong with that.

4) The Central Government doesn't have distractions like an election year getting in the way of making decisions. They will do everything possible to keep people working and avoid off-shoring jobs. They focus on GDP(real and imaginary), which is set to reach 9% this year,unlike some other countries..*cough* nuff said...



posted on Sep, 27 2011 @ 08:58 PM
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China will have to outsource jobs to poor countries where people will work for nothing, like the USA for example...





Kidding of course, but here is the paradox of wealth. The wealthier a country gets the wealthier the citizens, the more money it costs to pay them, the less wealth there is to be made.

Until the entire world is united by one currency of course....




posted on Sep, 27 2011 @ 09:00 PM
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reply to post by Fractured.Facade
 


My first clue was a story posted here where some students came unglued when food prices went up 4% and there were some riots. Just a matter of time as inflation raises it's ugly head there.

Stay tuned.



posted on Sep, 27 2011 @ 09:00 PM
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Originally posted by FlyingJadeDragon


With respect:

1) It was meant to be an ironic statement... but I accept responsibility for not specifying that.

2) Terms like "quasi," "semi," "hybrid," and such are useful ways to keep from having to call something by a less pleasant name. The Soviet Socialist Republic comes to mind.

3) "The government will step in and take over the operations of any key players who are too important to fail. Nothing wrong with that." I disagree with the precept that there is anything free about such a market.

4) Time will tell. It's all up to the banks.
edit on 27-9-2011 by Maxmars because: (no reason given)



posted on Sep, 27 2011 @ 09:01 PM
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reply to post by FlyingJadeDragon
 


1) It is not possible to illegally immigrate to China. People do sneak in from neighboring countries but they are usually jailed or deported. China is a non-immgration country. No visa, no entry.Period.

You can get a day pass at Shenzhen easily. No one checks your documents in most places. There are plenty of illegals in China. However, you are right... I don't think it would be the best place to be caught....



posted on Sep, 27 2011 @ 09:03 PM
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reply to post by boncho
 


Wealth and greed are inseparable... That said, this is nothing more than a predatory scheme to eliminate smaller manufactures, consolidating wealth and power among larger manufactures.

China has the amazing ability to simply not give a damn about small businesses or employers.

Their abilities to do things the west can't is why they are increasingly impossible to compete with... China isn't worried here, a few small manufactures are.

Despite prophecies to the contrary.



edit on 27-9-2011 by Fractured.Facade because: (no reason given)



posted on Sep, 27 2011 @ 09:04 PM
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aww the birth of outsourcing brings a tear to me eye

whats good for the goose is good for the gander

this gives a warm fuzzy feeling inside



posted on Sep, 27 2011 @ 09:06 PM
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Geesh and I was gonna ask for another prediction Slayer! China is it's own worst enemy in this case. Funny how they seem to be the Japan for 2012! I remember how many people were worried about Japan buying up property in the 90's. The worse will be seen in like twenty years when the workers start feeling the full affects of their nations lax environmental regulations. It reminds me of what happened during the industrial revolution with the working conditions.



posted on Sep, 27 2011 @ 09:09 PM
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I don't have the gift of prophecy, but gave you the truth nonetheless.

Not that it matters or anything...


*back to the shadows*

I know nothing, I am no one.



posted on Sep, 27 2011 @ 09:10 PM
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reply to post by SLAYER69
 


hey slayer whats tomorrows mega millions and powerball numbers?

they would make a most excellent birthday present



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