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Why of cheap labor, China you can forget

Established the perception of China as a world factory with the cheapest labor has lost its relevance. According to the study by IHS, Markit, the percentage of respondents who agree that China is a place of attraction of cheap resources, for the first time dropped to less than 50%.

Analyst Paul Robinson said that for the first time in the annual survey, less than half of the respondents agreed that they associate China with cheap labor. In 2012, there were 70%.

For many years companies around the world to reduce the cost transferred manufacturing operations to China. Apple assembles in China almost all products except the Mac Pro workstations and iMac. In recent years, however, wages in the private sector of China rose, which reduced the attractiveness of the country for companies that want to save.

According to IHS, Markit, 2006, the average salary in China has doubled, and by 2014 it was $685. For comparison: in Vietnam, Thailand and the Philippines, the salary was $212, $408 and $216, respectively.

“The survey results indicate the emergence of China as a country where global supply chains, not just a source of cheap resources,” analysts said.

In January, Taiwan’s Foxconn announced plans to work together with Apple to invest more than $7 billion in the production of displays for iPhone in the USA. It is a large-scale automated production technology based on Sharp, so that the States will appear from 30 to 50 thousand new jobs. Most of the factories of Foxconn, the biggest assembler of Apple products are China.

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