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 p.1 #16 · p.1 #16 · It looks like Sony has followed Nikon and Canon to Thailand | |
rscheffler wrote:
Political concerns certainly could be a reason why companies are moving out of China. But the bottom line for companies, is profit. If they can generate as much profit, or more, in another country with fewer potential future problems (being caught on the 'wrong' side of a conflict could be sufficient motivation) and with inexpensive labor forces, why wouldn't they? Isn't one of China's 'problems' a growing middle class with higher wages and corresponding expectation? It's only logical companies will continue their migration to greener pastures. Once they move through India and eventually Africa, maybe they'll end up back where they started!...Show more →
The labour crisis here (as in Japan) is only worsening with young women more and more refusing marriage and preferring a different lifestyle to the traditional one we grew up in (certain provinces in China have now passed regulations giving single married women with children the same rights and benefits of married child bearing women - unheard of in conservative China before).
Ally that to the decreasing population and increasing longevity and a labour crisis similar to that in Japan is only a couple of decades away.
On top of all that is China's transition to a more R&D and technology based industry. Of course due to the size of industry and population here (for scale : x4 more companies than in the USA) that will never be a complete transition but it is the direction major cities (those more attractive to MNCs) are moving.
That said for MNCs to move away from China to alternative countries is not easy. Vietnam fulfills the criteria (skilful and educated labour force with many university educated people of the right age), and maybe Thailand too (though it is a far more mature and expensive market it is still not at the same level as yet with say for example South Korea). However the more MNCs relocate to Vietnam the smaller the remaining human resources and the more the cost increases, eventually making a move unviable.
That can not be said (at this moment) of either India or Africa (generalisation) whose unemployed/labour forces, despite the huge numbers, are mainly unskilled and uneducated with a very low percentage of university educated people.
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