Where once low-tech factories and scant wages were welcomed in a China eager to escape isolation and poverty, workers are now demanding a bigger share of the profits. The government in China is also pushing foreign companies to make investments in areas it believes will create greater wealth for China, like high technology.
In response, many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and some are even resuming production in the West. Some companies have moved production to other countries in the region such as Vietnam, Indonesia or Cambodia. However these countries lack the huge work force, infrastructure and markets China can offer, and most face the same labor issues as China.
These areas also lack the intricate supply chains and logistics systems that have helped make southern China an export manufacturing powerhouse. For manufacturers still looking to boost sales inside China, shifting production to the inland areas where many migrant workers come from, and costs are lower, offers the most realistic alternative.
Check out the full article on Yahoo! News: Companies Brace for End of Cheap Made-in-China Era
