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Why is china losing manufacturing jobs?


Why is china losing manufacturing jobs?

Their wages are going up for one. They haven't been taking care of environmental issues and that will be a huge cost driver in the future. Jobs will move out of China.

Another factor is the inherent risk of operating a business in a communist country. You never know when your going to wake up one morning and your business was nationalized.

I would say due to the recent recalls of a variety of items. The bad publicity has really hurt them globally. The decrease in products being ordered from china has caused a decrease for the manufacturing jobs that produce these goods.

On too the next country for cheap labor.

The main reason China is losing manufacturing jobs is the same reason the U.S. is losing manufacturing jobs: AUTOMATION. Technology makes people exponentially more productive and hence fewer people are needed to do the same amount or more work. As China's factories invest in technology and become more automated they require fewer workers.

A secondary reason is that rising costs (VAT rebates phasing out, yuan appreciating relative to the dollar, inflation, high worker turnover rates, etc.) are making China less competitive, so some manufacturing is moving to places like Vietnam. The recent quality and safety issues have had no discernible effect on the number of manufacturing jobs overall. The person who suggested that has no clue what he's talking about.

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