Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Condor who wrote (39264)	10/7/2003 9:11:07 AM
From: TobagoJack	Read Replies (2) of 74559

Hi Condor, one argument I have often heard from US manufacturer visitor to Chinese factories is "the Chinese government must subsidize the raw material, because how else can that guy's raw material cost less than my raw material when we are using the same grade of steel from Germany !" ... the answer is really quite simple ... the handling cost between cargo ship and factory door of the raw material in the US is so much more expensive than same handling in China, and the warehouse manager in the US cost more than the Chinese bean counter in equivalent warehouse. The labour intensive factories in China's coastal region are beginning to relocate into the interior where wage cost is anywhere from 30 to 70% lower, and so the competitive pressure will only intensify, across ever more categories of products with ever increasing value-add. Chugs, Jay

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next