This is great news! The new trade policy by the Chinese gov. (reduce/eliminate export rebate on many low end exports, increase the export tax on many energy/resource intensive exports...etc.) finally see some result! Thousands of sweatshops owned by HK and Taiwanese business people will close down! This will definitely "help" the US inflation<g>
The article is in Chinese, here is some summery:
It is estimated that by the end of this year, in just two cities -- ShenZhen and Dong Guan in Guangdong, at least >1000 Taiwanese sweatshops will close down. and another 4000 may close in the next two years.
In Guangdong province, it is estimated >10,000 HK sweatshops will be closed or scaled down.
It is estimated in Guangdong alone, there are 300K or so Taiwanese. And 50% of them are make a living by operating 6700 sweatshops there. In case of a lot of these business close down, their returning Taiwan will put great pressure to Taiwanese economy.
These sweatshops have been suffering from 6 Shortage for a long time: cheap labor, water and electricity, capital, middle/advanced technicians (personally, I think this is due to their pay is TOO LOW), raw material, and land. So the reform in export rebate since July, and raising the security deposit is the last straw on camel's back.
These sweatshops are involved in OEM product of all types of business, shoe making, furniture, glass lamp, umberilla ...you name it.
Some of these closing down sweatshops have moved to Vietnam or other Southeast countries.
Here is the link for the article
wforum.com |
