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Article

17 Aug 2010

Author:
Jing Ulrich, Financial Times

Chinese labour disputes have silver lining

China’s large coastal manufacturing hubs have...been the production base of choice…But...with a strengthening renminbi...government action to curb pollution and…an upsurge of labour disputes...[c]ompanies that traditionally relied on China as a source of cheap labour are increasingly relocating...to lower cost labour venues – particularly in central China, by speeding up factory automation plans and, where possible, by passing on costs to customers…[T]he process of relocation to central China will generate higher demand for logistics services while the increasing wage pressures will prompt more companies to invest in automation. [Refers to Atsumitec, Foxconn (part of Hon Hai), Honda, Omron, Toyota, Yum Brands]