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chithanh | 3 months ago
No. Manufacturing labor cost in China is not cheap. In fact since 2012 or so, it is more expensive than in most of Asia. Companies who want cheap labor look elsewhere.
https://www.economist.com/business/2023/02/20/global-firms-a... (Archive link: https://archive.fo/tdhXJ )
China is also the only major economy where wages have increased at the same rate as GDP in the last 40 or so years.
adrianN|3 months ago
myrmidon|3 months ago
myrmidon|3 months ago
That is objectively dirt-cheap compared to basically all of the west.
Yes, wages might be even cheaper in neighboring countries, but those lag behind in infrastructure, education, political stability, availability of capital and network effects from existing industry (and are thus not a viable alternative to China yet for lots of things).
chithanh|3 months ago
I agree that infrastructure, supply chains, political stability, and education are the primary drivers for attracting manufacturing to China.