It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
The reason Foxconn may be of interest is that as Reuters reports, as a result of soaring wages on the mainland, and in its ongoing strategy to keep worker compensation as razor thin as possible, the fabricator is now actively looking to expand outside of China. Among the places considered? Indonesia of course. And, drumroll, the United States! In other words, from the perspective of Foxconn, US labor now has greater wage competitiveness than China.
It is quite possible that while China was napping, the Fed's exporting of wage inflation just succeeded to get the US to relative wage parity with China - something most considered impossible as recently as 5 years ago. However, if indeed true, this means that the Chinese response will only have more urgency now that it suddenly may find itself competing with workers from places such as the US.
After a rash of suicides, FoxConn responded to widespread criticism of working conditions at its factories by reducing the amount of time employees could work overtime, among other measures. The problem is that the new policy, which adheres to Chinese labor laws, is making it hard for employees to earn a living because they are working fewer hours at the higher overtime rates, the Wall Street Journal reports. Source...