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Key statistics about China
China is the unqualified cost
and quality leader for offshore manufacturing
Wage rates in China
Wages in the industrial northeast of China average 70 cents per hour for direct labor resources. Since the availability and retention of quality workers varies significantly across China, wages vary significantly as well. We strongly advise careful examination of these variables as part of a due diligence process.
Wage stability in China
According to the US BLS, "of the 29 countries
surveyed, Mexico had the greatest increase in 2000 hourly compensation costs, measured in US dollars, for production
workers in manufacturing: 17.7 percent." Conversely, according to the Wall Street Journal (March 14, 2002)
"China's population is so vast that it can stay smart and cheap -- a formula that's making it a new superpower
in high-tech manufacturing...There's enough talent in the poor interior that prices will stay relatively low...It
begins with the millions who abandon farming or menial jobs in small towns and provide a constant stream of cheap
factory labor."
China's labor quality
"China's education system has met rising demand
for skilled workers...37% of [university] graduates in 2000 were engineers, compared with about 6% in the U.S."
(WSJ March 14, 2002)
Access to Transportation
Tianjin is a major coastal seaport allowing cost
effective seagoing transport for Bulk shipments. It's airport, Tianjin Coastal International is the largest air
freight center in North China. And, Tianjin's close proximity to the country's capital of Beijing assures the best
combination of speed and value for moving your people and freight into and out of the country.
Access to Asian Markets
According to current government forecasts, the
Chinese economy will outstrip US and European growth rates by 250-300%. Your company needs to establish a presence
to gain valuable experience in order to take advantage of the market opportunities presented by China's accession
to the WTO when the time is right for your particular enterprise. The Chinafacturing Solutions management program
provides you with a low risk, high return opportunity to establish operations in China now.
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