The potential end of cheap made-in China

myp · Jul 12, 2010

China has seen a few major strikes in the past two months that could mean an end to cheap "made-in China" products for consumers around the world. With workers demanding a greater share of profits, the cost of goods is likely to go up.

For those in the United States, China's change in monetary policy from pegging the Yuan to the USD to now allowing it to have more freedom in value changes, could further the effect as a stronger Yuan would mean products would cost more in USD as well.

Both of these occurrences can have serious ramifications on our economy and the world's. Any predictions, thoughts or insights?

el canadiano · Jul 13, 2010

Well, if you don't go Made in China, you'll do something more like Made in Bangladesh or Made in Taiwan, wouldn't you? You can't really put all your eggs in one basket (and to be honest, I've seen more products around here made in places like Bangladesh or Pakistan anyways).

myp · Jul 13, 2010

el canadiano said:
Well, if you don't go Made in China, you'll do something more like Made in Bangladesh or Made in Taiwan, wouldn't you? You can't really put all your eggs in one basket (and to be honest, I've seen more products around here made in places like Bangladesh or Pakistan anyways).

While there are other areas of cheap labor, China drives so much more volume than all of them. Even if they all increased their output, there is no way that they would be able to even come close to what China exports. Also, the Yuan peg created certainty that isn't there with the other countries.

el canadiano · Jul 13, 2010

Well you've also got to realize now that China is much stronger, the cheap labour is going to be more expensive, so you would have to eventually switch out if you still want that cheap labour anyways.

myp · Jul 13, 2010

el canadiano said:
Well you've also got to realize now that China is much stronger, the cheap labour is going to be more expensive, so you would have to eventually switch out if you still want that cheap labour anyways.

China has over 1 billion people and a workforce of millions. Other nations can't just "make up" for it. We will face higher prices and that is the point of discussion

jdsingle · Jul 13, 2010

I just hope this change impacts Wal-Mart lol. I would say we might see a shift of labor from China to other countries ready to produce at cheap labor rates. Not to mention, if the rise is significant enough, it is possible we see a small influx of outsourcing brought back to the US.

notimpressed · Jul 13, 2010

A little bit of altitude to show, China is hip. If it goes to far Chia will resort to start a match of the Communists favorite sport. Heres a scene from the last match in China.

digitalfanatic · Jul 26, 2010

China has cheap products all over the world due to several reasons. These reasons are nothing but the dedication of the workers and government. I don't think any change in monetary policy can bring down China so easily!

myp · Jul 26, 2010

digitalfanatic said:
China has cheap products all over the world due to several reasons. These reasons are nothing but the dedication of the workers and government. I don't think any change in monetary policy can bring down China so easily!

Monetary policy has A LOT to do with it. It is one of the government's strongest weapons in controlling prices and it affects working conditions and profits.

The potential end of cheap made-in China

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