China losing cheapness claim

[dkf]

http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20080224/BUSINESS/802240336/1071

SHANGHAI, China — The teddy bears selling for $1.40 in Shanghai's IKEA store may be just about the cheapest in town, but they're not made in China — they're stitched and stuffed in Indonesia.

The fluffy brown toys reflect a new challenge for China: Its huge economy, which has long offered some of the world's lowest manufacturing costs, is losing its claim on cheapness as factories get squeezed by rising prices for energy, materials and labor.

Those expenses, plus higher taxes and stricter enforcement of labor and environmental standards, are causing some manufacturers to leave for lower-cost markets such as Vietnam, Indonesia and India.

Costs have climbed so much that three-quarters of businesses surveyed by the American Chamber of Commerce in Shanghai believe China is losing its competitive edge.

The higher costs mean Western consumers are bound to face steeper prices for iPods, TVs, tank tops and many other imported products made by small Chinese subcontractors.

[orleans]

1. so...take that! china! n/t

[physioex]

2. I can give you a small example.....

I bought a fluorescent torchiere back in 2001 for approximately $15. Now if you want to purchase that same torchiere it costs $50. It is dimmable kind with that low quality switch that breaks easily. My ballast also went bad. Luckily I was able to order parts of the internet and fix it for $15.

On Edit: Although the prices of the their goods have increased, I see no improvement in quality. Atleast when you bought a Sony TV in the 70's you knew you were buying quality.

[izquierdista]

3. There are two other areas where they can't be beat

Shoddiness and product toxicity.

[physioex]

7. And even more dangerous....

They are selling food items such as fish tainted with all forms of toxic chemicals.

[Thothmes]

4. Four decades ago

"Made in Japan" meant with cheap junk. The Japanese learned, the Chinese will also learn.

[lonestarnot]

5. Fuck 'em. I'm not buying their shit or anyone elses. LOL

[physioex]

6. Agree...What that poster is saying is nonsense....

I see virtually no improvement in quality in Chinese made goods. Unlike the Japanese this is a race to the bottom. Where we are sold tainted foods and ever lower quality of products.