No Longer “Made in China”

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Fan Wang Christie Collins EN1005.06 10 Nov 2013 No Longer “Made in China”: Disadvantages of China’s Rising Labor Cost in Manufactory Industries Why products made in China are so popular in the world? During recent several decades, manufactory industries in China develop so rapidly that make China as a leader in the export market and spread the label of “Made in China” all over the world. “Made in China” goods cover a wide range of categories from apparel to high-tech products, for example of the famous Apple products with a label of “Designed by Apple in California Assembled in China”. The main reason why China is so appealing to worldwide companies as the manufactory location is definitely China’s unbelievable cheap labor cost advantage. However, in recent years, especially after the financial crisis in 2008, China’s labor cost keeps climbing and China is losing competitive low cost priority compared with other low cost countries. As a result, “Made in China” market is becoming “a dying business” (Ang 40). Even though China’s rising labor costs has shown that China becomes a wealthier and more developed country, the growing wages in China’s manufactory operations make negative effects in the decrease of business overall profits, the extra cost of Chinese domestic operations’ relocation, and the decline of foreign companies’ investments. Recently, there is a controversy about whether rising labor costs in China’s manufactories is good news or not. Certainly, there are some positive effects of China’s rising wages in its prosperous domestic market and other countries’ revival employment. One advantage is that foreign investment manufacturers will save a lot of freight shipping cost to the international market since many present or potential

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