China loses crown in low-cost manufacturing to India, Mexico

Su-47

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:2guns:

yes, India government never feels shameless that millions of "slumdogs" sleeping in street begging.....love live india-style democracy....:2guns:

Great indian people can live on without food, but can not live on without "freedom and democracy"....
Badguy, india's poverty is not the result of freedom and democracy, but due to a long list of other factors, like population, corruption, british exploitation in the past, a feudal system in parts of the country even now, etc. And due to economic growth, poverty in India is being reduced.

China also faced or still faces these problems, but remember, Indian and Chinese economic growth was as a result of opening up its economy and adopting a capitalistic policy on business. Had the chinese govt operated like it did in the 60s and 70s, china would be nowhere now. Just look at what Mao did to the country in the 60s. Millions died of starvation in China. Its economic freedom that resulted in china's growth, not communism. The CPC is communist in name only.

There is another nation in your neighborhood who suppresses the rights of its citizens and is ruled by a dictator. Yeah, I'm talking about North Korea. The situation there should give you some idea of what China would have been like had they chosen to continue down the communist path. Thankfully, Deng Xiopang had more sense.

And as for democracy and freedom, those are the rights of the people, even the mighty Soviet Union, which suppressed these rights since the Bolshevik revolution of 1917, finally fell. Russia is now growing as a democratic nation. All the economic powers of today, bar China, are democratic and the people have a lot of freedom.

Instead of looking at how much China progressed under an autocratic govt, just ask yourself, "How much would china have progressed under a democratic government?"
 

MMuthu

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Badguy, india's poverty is not the result of freedom and democracy, but due to a long list of other factors, like population, corruption, british exploitation in the past, a feudal system in parts of the country even now, etc. And due to economic growth, poverty in India is being reduced.

China also faced or still faces these problems, but remember, Indian and Chinese economic growth was as a result of opening up its economy and adopting a capitalistic policy on business. Had the chinese govt operated like it did in the 60s and 70s, china would be nowhere now. Just look at what Mao did to the country in the 60s. Millions died of starvation in China. Its economic freedom that resulted in china's growth, not communism. The CPC is communist in name only.

There is another nation in your neighborhood who suppresses the rights of its citizens and is ruled by a dictator. Yeah, I'm talking about North Korea. The situation there should give you some idea of what China would have been like had they chosen to continue down the communist path. Thankfully, Deng Xiopang had more sense.

And as for democracy and freedom, those are the rights of the people, even the mighty Soviet Union, which suppressed these rights since the Bolshevik revolution of 1917, finally fell. Russia is now growing as a democratic nation. All the economic powers of today, bar China, are democratic and the people have a lot of freedom.

Instead of looking at how much China progressed under an autocratic govt, just ask yourself, "How much would china have progressed under a democratic government?"
No Use...... I bet you cannot convince a chinese....... I will tonsure myself if he accepts your justification.
 

johnee

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PLS have a look at millions "slumdogs" in slum sin India.

what will be their option, " a hard job earning 250 USDs/ month in "sweat factories" or be a "slumdog" sleeping in street?
Starting to feel the heat, eh?!?
Once the questions get too uncomfortable for a Chinese or Pakistani, they sing the familiar song of 'oh, India is so poor, China is so rich', 'democracy doesnt work, slavery is so much better'!

Slums are a very complex situation. All the people living in slums are not exactly below poverty line, some of them are lower middle class. Many of them have good modest earning. When Govt gives them other accomodations to live, they simply rent the place and come back to live in slums. I am not for a moment saying that Govt can wast its hands off. But perspective is important. And in a democracy, there are checks and balances. Govt doesnt have a free hand. There is opposition waiting for the Govt to make a mistake, Free Media waiting for any news to sensationalise it and above all the citizens are aware of their rights and cannot be goaded like goats. If CPC wants it can order all the slums to be cleaned in a week and ppl living in slums have no choice but to obey. But the Indian Govt cannot give such high handed orders, they have to actually listen to all the parties involved and then make a decision that is acceptable to everyone.

Finally, the bottomline is that there are lot of poor ppl in India, China and rest of the world. In India, those poor have some rights. They get to choose who rules India next. Even PM is answerable to them. Therefore, every party has started different schemes to attract the votes of poor. Schemes like Rs 2 per KG of Rice, Free Education for Girl Child, Midday meals at schools besides free education, free ambulance service, and medical treatment for poor, compulsory employment for 3 months annually,.....etc. Indian poor are the king makers and hence they get the royal treatment. Of course, there is corruption, and that make eradicating the poverty difficult, but the efforts are on.
In contrast, the chinese poor are equal to animals. They have no voice to express their problems. And there is no one to listen to them. Becoz your Govt doesnt have to listen.

Poor are poor. In India, they have a voice to express their problems and every party pays attention to them to garner votes. So, indian poor have rights and a stake in governance.
But In China, poor have no rights, no voice, no stake in governance......nothing. They are equal to slaves. Your arguement itself tells me how you look at the poor ppl. You are almost saying that poor should be happy they are allowed to live!:((
 

johnee

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I just tell the truth but you are cheating yourself......

so,buddy, if you really want your voice to be respected ,pls get youself rich first.

and if you want your country's voice to be respected, pls get your country rich first.
Badguy,
when you are debating a point, you need to back up your claims with some proper analysis and sound arguement. By just repeatedly ranting the same thing, you are not going to convince anyone. So, keep that in mind when you reply next time.

And then, India is becoming rich. AFAIK, India is the second fastest growing economy. Whats more, when India grows, its ppl dont have to work like slaves. India becoming rich means ppl(rich and poor) becoming rich. Can you say the same for China? China is becoming rich by making its population work like slaves.

Rich or not, India is a place where everyone must get their due. Otherwise, there is no meaning of our freedom. I will prefer free life to golden cage anyday.
 

S.A.T.A

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Chinese migrant workers' welcome back to poverty

Chinese migrant workers' welcome back to poverty

You can feel the suppressed emotion, despite their blank expressionless faces. It hangs over the entrance to the Chongqing railway station like a Yangtze River fog. A grey pall of despair. A cruel prelude to a return to life as it was 30 years ago before Deng Xiao Ping’s policy of “opening and reform”.

Welcome home folks. Welcome back to poverty.

Back home to the village, the farm, and the never-ending struggle to survive. A return to the static life, and the endless cycle of more of the same. What now, comrades?

The children: despite their migrant worker status, these youngsters benefited from an education received in the second-rate factory schools of the boom cities on the coast of China. Now, however, it is back to the village school and its dull, parochial ignorance.

The isolated village school: a mud brick or rammed earth construction, with a rough stone floor, and a leaky, drafty roof. A teacher who is a high-school graduate, who instructs in the local dialect, and who has never left the district let alone the province.

No textbooks. No grades. Everybody in one class chanting and learning the basics by rote. Facts for survival today at local level rather than knowledge for a future elsewhere.

Twenty million migrant workers have lost their jobs so far. Every day, a few thousand more of them pour out of the Chongqing Railway Station and onto the open square outside where they wait for a connecting train. Family groups squatting on the ground, sitting on their baggage, or standing around smoking those killer cigarettes and staring blankly into space.

What next? The hopes of an extended family depend on each single child. Education is the only way up and out of a miserable life in rural China. This is the primary motive for leaving the farm or the village … to earn enough money to pay for a child’s education.

A good education might secure a government job for their child after graduation. Centuries of Confucian respect for order and status has taught Chinese people that a government job is the best insurance against catastrophe, whether it be fire, famine, flood, war, or a western-style capitalist recession.

Centuries of hard experience has also taught them that the closer you are to a government job, the richer your family will be. The further away you are from the government teat, the poorer you are likely to remain.

A secondary motive is healthcare. Treatment for a serious illness costs an average of two year’s income. This is why so many rural folk suffer from treatable illnesses. If you don’t have access to affordable healthcare, how then can your early stages of cancer, heart disease, or diabetes be diagnosed and treated?

This is the reality. The untreated disease progresses, and the patient dies.

The main reason for migrant worker sacrifice today however, is the desire for their child to get a government job tomorrow. This way, the future for the extended family will be a little brighter.

This is how it has always been in China. This is also how we might understand local corruption.

That grasping county official whom we love to despise is respected by his extended family. They depend on him and his ability to squeeze money out of the community and into the family coffers. He is expected to educate his nephews and nieces, take care of the elderly, provide better housing, and generally raise the socio-economic status of his grateful family.

It’s what you do in a country which has little social security and few laws to protect the rights of individuals. Thus family is everything. Anyone outside the family is fair game.

But the closure of factories and the mass laying-off of workers in places like Shenzhen and Guangzhou have postponed the dreams of this generation of adult migrant workers who wait patiently for the next train home to their small communities in the poor rural areas of Sichuan Province.

Their gaunt faces betray a grim acceptance of fate rather than volatile emotions of anger, revenge, or self-pity. These tough brown-skinned survivors are steeling themselves for an uncertain future again. They have been in this situation before: they know how to survive in a cruel and unjust world. That lucrative government job will have to wait awhile.

Strong, wiry men and their tired-looking wives returning home with little to show for their effort. Their entitlements disappearing with the factory owners who bolted en masse back to Taiwan after their enterprises collapsed.

And for the first time I seriously consider the potential advantages rather than the known disadvantages associated with political reunification between mainland China and Taiwan. If only to deny these exploiting, delinquent, economic opportunists their Guomindang safe haven across the Taiwan Strait.

The defeated Nationalist leader Jiang Zhe Shi (Chiang Kai Shek) and his cronies and relatives would have been proud of these criminals. This kind of behavior was one of the reasons why Mao’s communist revolution succeeded in the first place.

Is there any hope for fair compensation or natural justice for these abandoned migrant workers?

None at all. This is history repeating itself. Europe exploited the same class during the industrial revolution in the 18th century, and now laissez-faire capitalism in nominally communist China is doing the same. The more things change, the more they stay the same.

Chinese people know how to endure suffering. They have had plenty of practice. These stoic migrant workers will endure.

That’s the Government’s hope anyway. The alternative could be a different kind of catastrophe.

A quote from some Chinese friends:

“Sheng huo” - Western people know how to live.
“Huo zhe” - Chinese people just live (survive).
 

Singh

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Global Manufacturing in China Changes Tune as Exports Slow and India Rises

May 21 - Subtle changes are occurring in the global and domestic perception of China as a viable cheap manufacturing source as the country grapples with the imbalances caused by its export driven economy. While much of China’s foreign direct investment over the past twenty years has come from initially one source – the development of foreign invested manufacturing businesses taking advantage of China’s cheap labor, land and infrastructure costs to then sell on to international markets – this has exposed a weakness in China’s ongoing progress. With 40 percent of China’s annual GDP growth dependent upon exports, a global downturn such as the one we are experiencing has had a significant impact upon the nation’s economy and security.

It is true to say that manufacturers have evolved over the past few years as more companies start to shift part of their China production to the domestic market, however the general principle of China as a low cost, export manufacturing center remains the given assumption. Yet China is aging, and this, coupled with the rise of in other developing manufacturing hubs like India and Vietnam, signals a political urgency to correct the nation’s manufacturing profile. Moves to shift this balance upstream to added-value production, and to diversify away from this traditional, yet economically skewed model, have only just started to be implemented, and with China struggling to cope with its reliance on exports, the China slow down has been sharp and in cases, severe. While the Chinese government has announced measures to assist domestic exporters as part of its economic stimulus plan, this is only a short term safety net as it encouraged its domestic manufacturers to adapt and search for a wider basket of markets. In any event, such incentives are not available to foreign owned businesses in China.

The timing of some of China’s reforms has also been unfortunate. A tightening up of the labor law last year may well have kept many Chinese in jobs that would otherwise have disappeared during the downturn. While this represents a win situation for the government, it has led many manufacturers and potential investors in China to think again. A fairly comprehensive victory by the pro-business and foreign investment friendly Congress Party suggests that India will rapidly become a major competitor for FDI dollars in the short-long term future. Barriers to FDI in India will likely be torn down, the domestic market will increasingly open up, and massive infrastructure projects, previously on the back burner due to the political horse trading will now be fast tracked. Make no mistake, with a mandate to rule, the Congress Party in India will prove a dynamic regional force in the redevelopment of India. Opportunities abound in the country, and it will see growth at a rate that China did twenty years ago. In order to cope with this, the priorities for China’s continuing development have to change. It simply cannot compete with India for much longer over cheap wages and export driven manufacturing.

The implications for China are interesting. It means that it is demographically and economically bound to follow a different route than the one it has for the past twenty years. No longer can China afford to be simply a cheap destination for investing in export manufacturing. Costs will continue to rise, and competition, in the shape of India and the tiger economies of Southeast Asia, has arrived. It means that investing in business opportunities in China has become increasingly dependent upon servicing its domestic market. That in turn has huge implications for foreign investors. Market research in China used to be somewhat perfunctory – a quick scout around which free trade zone offered the best land costs, tax deals and infrastructure. Quite clearly, this is no longer going to be enough. Setting up business to manufacture and sell to China requires a detailed study: the local area dynamics, the local culture, and of course coming head-to-head with local competition.

While Beijing, Shanghai and Guangzhou are all premium, yet market saturated cities, selling to the China market will increasingly demand greater sensitivities. Opportunities in Xinjiang require an understanding of the local Muslim population; products need to be marketed in a form of Arabic. Selling in Chongqing requires studies of the transportation system down the Yangtze. Yunnan, with several types of minorities, includes dealing with everything from Tibetan to Khmer sensitivities.

The economic factor will additionally start to raise its head, and the research needs to be spot on. Chinese competitors will always be able to supply the domestic market at a lower price. Accordingly, foreign investors in China will need to provide a better quality product, position and market it correctly, and face the threat of local companies evolving to compete. The age of quality market research as a pre-investment tool in China has arrived, and providers will need to be able to cover the entire country in order to be able to provide accurate and comparable data.

Short-term, the Chinese government is going under pressure to reduce export costs. However, with the stimulus package firmly geared towards generating more domestic demand, and competitors such as India breathing down their necks, China’s exporters look set to be in the doldrums for some time to come. Yet with 40 percent of China’s annual GDP dependent upon exports, the government is clearly in danger of getting caught between two stools. In order to reduce that burden, pressure on the government by its export driven businesses is likely to increase. Whether this manifests itself in grants to exporters, or a climb down on some aspects of the labor law, is difficult to pin point. However, in keeping Chinese businesses and domestic workers happy, the Chinese government risks losing its attractiveness as a destination for manufacturing and export driven FDI.

The implications for foreign investors require a change in the mind set away from China as a destination for purely cheap, export led manufacturing. India is increasingly going to take over this role. China now represents a huge domestic market, but one that is still largely unexplored in terms of its massive interior populations, and one that will require patience, and significant resources to crack. “China has changed” is a popular mantra that has been spoken over the years. It continues to, and in moving up and away from its role over the past two decades will increasingly demand a more sophisticated approach to its market than has, until now, been the case. Foreign investors in China, instead of just scouting around for cheap production, will now have to think carefully about their longer term position, and whether or not they really want to be a China business.

Global Manufacturing in China Changes Tune as Exports Slow and India Rises | China Briefing News
 

Pintu

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That's a great article , Singhji a very nice find ,and truely from a neutral point of view.

Regards
 

Singh

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China's Manufacturing Rebound

China's stimulus measures and aggressive lending have helped the country's manufacturing sector to expand for the first time since July, according to a survey by Hong Kong brokerage CLSA. The market was particularly encouraged by a pickup of new orders, which boded well for further economic recovery.

Manufacturing prices continued to soften though, while employment picked up. There has been concern that Beijing's propping up of the manufacturing sector will ward off necessary capacity-cutting and contribute to prolonged falling prices. China is trying to navigate a fine line between rebalancing its economy away from exports and up the value chain, and protecting its manufacturing sector so that factory jobs aren't lost too fast, raising the specter of social unrest.

The CLSA Purchasing Managers' Index, which surveys manufacturing conditions among industry managers in charge of purchasing decisions, improved markedly in April, to a reading of 50.1, compared with 44.8 in March. A reading above 50 indicates an expansion, while a reading below 50 signals contraction.

New orders picked up for the first time in nine months, mostly due to a boost in domestic demand due to China's fiscal measures, including tax breaks for manufacturers, infrastructure spending and subsidies for consumers. Rural residents have been encouraged to buy cars and urban residents to buy homes. The Chinese government has also sought to strengthen the social safety net to encourage domestic consumers to spend more. China's record lending boom has greased the wheels of manufacturing orders as well.

Export orders continued to contract, but in the smallest decline in eight months. Strengthened domestic demand will help offset continued contraction of export orders, according to CLSA economist Eric Fishwick.

But manufacturers continued to charge less for their goods, due to intense competition and a decline in input costs, from commodities to energy. Employment, a key concern for the Chinese government as it faces a tide of unemployed migrant workers and new college graduates, also expanded, posting a reading of 50.9, compared with 47.1 in March.

Meanwhile, the official State Information Center forecast GDP growth to accelerate to 7% in the second quarter, compared with 6.1% in the first quarter. After initial skepticism that China could hit its official growth target of 8% this year, analysts have revised their full-year growth forecasts up to 7.5% to 8.3% (See "The False Promise Of China's Magic 8 Ball"). But some analysts have warned that China's stimulus-driven growth won't promise better corporate earnings.

Over the weekend, China released its official Purchasing Managers' Index, which registered a reading of 53.5 in April, compared with 52.4 in March. The index had plummeted to 38.8 in November.

China's Manufacturing Rebound - Forbes.com
 

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