Manufacturers LEAVING CHINA!

Manufacturers LEAVING CHINA!

Posted in the China Forum

LOVE CHINA DESTROY CCP

Surrey, Canada

#1 Mar 19, 2013
Some Manufacturers Say 'Adios' to China
Published: Tuesday, 19 Mar 2013 | 12:19 PM ET By: David Agren

"When you look at total costs, you're pretty much at parity," says Moser, president of Casabella, based in Congers, N.Y.

Companies like Casabella couldn't move out of Mexico fast enough a decade ago, sending production to China to take advantage of the cheaper wages and prices in a country keeping its currency artificially low.
But the cost of doing business in China has been rising steadily, say companies that have returned to Mexico. Salaries are surging there. The Chinese currency, the yuan, has risen in value, making goods more expensive to export. Shipping costs have risen as well, making a move to Mexico even more attractive to companies whose primary markets are in the Western hemisphere.

The Mexican peso this week rallied on optimism about the country's economic prospects following an unexpected rate cut last week. The peso has risen 2.8% in 2013.

Recently installed President Enrique Pena Nieto, meanwhile, has promised changes to Mexico's tax system and reforms of its government-run energy sector to attract more outside investors and businesses from the USA and elsewhere.

"Mexico is a stable country, close by, but unfortunately with cheap wages," says Eduardo Garcia, publisher of online business journal Sentido Comn.
Wages were six times higher in Mexico a decade ago, but only 40% higher than those paid in China in 2011, according to a recent report by the International Monetary Fund. Mexico is part of more than 40 free trade agreements, which tends to reduce costs further. Then there is the weariness of doing business in China what with the midnight telephone conferences and 16-hour flights to Beijing—says Ed Juline, whose Guadalajara-based company, Mexico Representation, consults and represents manufacturers moving to Mexico.

"I have a dozen projects on my plate" of companies that want to get out of China, Juline says.

...
LOVE CHINA DESTROY CCP

Surrey, Canada

#2 Mar 19, 2013
...
The upswing in manufacturing—about 20% of Mexico's GDP—is driving the Mexican economy. Mexico says it expects its economy to expand by 3.5% in 2013.

It's a reversal of fortune for Mexico, which lost manufacturing jobs to China during the last decade and watched rival Brazil boom by selling boatloads of raw materials to the emerging Asian economy.
"Mexico was uncompetitive," Juline says.

But China was gaming the system against places such as Mexico, he says. Along with keeping its currency low, China has subsidized fixed costs to benefit its commercial activity, which hurt Mexico, he says.

Meanwhile, lead times for Chinese factories are increasing and manufacturers there are showing less interest in handling smaller orders, says Mike Rosales, whose Los Angeles-based company, Manufacturing Marvel, makes toys and trinkets in both China and Mexico.

Rosales says that shipping costs for him jumped when oil prices hit $100 a barrel, and the lack of protection in China for industrial and intellectual property became problematic.

"They would ship your product out the front and your product with someone else's name out the back," he says.
Some of the merchandise being made in Mexico ranges from figurines to flat-screen TVs, along with advanced items such as aerospace parts and automobiles—2.8 million of which were assembled south of the border last year.

Some here say more manufacturing in Mexico benefits U.S. businesses because it offers them suppliers on both sides of the border. Jim Raptes, custom sales manager at Deco Products, which makes zinc castings in Decorah, Iowa, says his Mexican business has increased from 1% of total sales to 10% over the past five years, due to orders from manufacturers in Mexico.

Security remains a concern in Mexico, Juline says. But he feels the violence, due largely to drug wars, has given few companies pause about coming south.

Executives won't travel to Mexico, he says. "But the Americans who do come down here secretly love it."
CCP makes CHINA WEAK

Surrey, Canada

#3 Mar 19, 2013
"...the lack of protection in China for industrial and intellectual property became problematic.

"They would ship your product out the front and your product with someone else's name out the back," he says."

It's China's CCP "bandit culture". Everyone steals, following the lead of the CCP members, and children grow up dreaming of becoming CCP bandits and stealing from their own people.

Poor China. So damaged.
Chinese guy from San Jose

Cupertino, CA

#4 Mar 20, 2013
You will surely burn in hell all the evil you have spread. The first thing is your meat, and skin will peal off from your bones. LOL.. You are too late. the crimes are already done...LOL
Old Jew

San Francisco, CA

#5 Mar 20, 2013
Whether Miro likes the CCP or not, they are good for the ppl of China bc they r for the ppl and by the ppl. They in fact kicked his Indian butt out of China. The CCP also does over 25 billion dollars of business with Israel.
atilla the Han

Australia

#6 Mar 20, 2013
Chinese guy from San Jose wrote:
You will surely burn in hell all the evil you have spread. The first thing is your meat, and skin will peal off from your bones. LOL.. You are too late. the crimes are already done...LOL
that is for dalai lama!!!

humane lethal injection will do the job.
LOVE CHINA DESTROY CCP

Surrey, Canada

#7 Mar 20, 2013
^FUNNY how the Chinese Communist Party lackeys think that primitive Red Guard "denunciations" of any people who state the facts about China's crumbling economy will save the dying CCP regime!

So BACKWARDS and STUPID, these crude thugs of the CCP!

HA HA HA HA HA HA HA HA HA!
atilla the Han

Brookvale, Australia

#8 Mar 20, 2013
LOVE CHINA DESTROY CCP wrote:
^FUNNY how the Chinese Communist Party lackeys think that primitive Red Guard "denunciations" of any people who state the facts about China's crumbling economy will save the dying CCP regime!
So BACKWARDS and STUPID, these crude thugs of the CCP!
HA HA HA HA HA HA HA HA HA!
Do you know the way to san jose?
you've been away so long. you may go wrong and lose your way.
why dont you ask the chinese guy from san jose?
he will find you some peace in san jose.
CCP is DYING

Port Moody, Canada

#9 Mar 20, 2013
Do you know the CCP is dying,
I'm going back to FREE CHINA soon,
do you know the Cadres will stand trial,
for CRIMES AGAINST HUMANITY......

Catchy tune!
atilla the Han

Australia

#10 Mar 20, 2013
CCP is DYING wrote:
Do you know the CCP is dying,
I'm going back to FREE CHINA soon,
do you know the Cadres will stand trial,
for CRIMES AGAINST HUMANITY......
Catchy tune!
lie and lying is the same word.
It can pull you far away from the right path
With a curse in your heart you're never reincarnate.
Dreams turn into dust and blow away
And there you are without a friend
You pack your car and ride away
the chinese guy from san jose got lots of friends in san jose
Do you know the way to san jose?
Can't wait to get to san jose.
bogangles

Netherlands

#11 Mar 20, 2013
China has had many golden opportunities but thanks to corruption and the ability to form proper trusting long term business relationships and all the other issues they have created, it will cost them dearly in the future. they have abused the land. the quest for economic growth has left many parts of the country like toxic waste lands. The Chinese are not long term thinkers. it's more like how quickly can I get big money back very quickly, and they have absolutely no business ethics. try doing business in China with a Chinese and I can assure you that it's very near impossible. they are professionals in the game and art of deceit and know more tricks than you would care to imagine.a ask most Chinese and they would tell you they are tired of a single party that cares only for themselves and the party members. they don't trust their own government and would welcome democracy tomorrow. communism has never truly served the people it only serves the greedy corrupt who crave power and will do anything to keep that power.
atilla the Han

Australia

#12 Mar 20, 2013
bogangles wrote:
China has had many golden opportunities but thanks to corruption and the ability to form proper trusting long term business relationships and all the other issues they have created, it will cost them dearly in the future. they have abused the land. the quest for economic growth has left many parts of the country like toxic waste lands. The Chinese are not long term thinkers. it's more like how quickly can I get big money back very quickly, and they have absolutely no business ethics. try doing business in China with a Chinese and I can assure you that it's very near impossible. they are professionals in the game and art of deceit and know more tricks than you would care to imagine.a ask most Chinese and they would tell you they are tired of a single party that cares only for themselves and the party members. they don't trust their own government and would welcome democracy tomorrow. communism has never truly served the people it only serves the greedy corrupt who crave power and will do anything to keep that power.
europeans are truly sleep walking into oblivion!!!

hello wake up!!! china is not a communist country for a few decades now.
CCP is DYING

Port Moody, Canada

#13 Mar 20, 2013
atilla the Han wrote:
<quoted text>
europeans are truly sleep walking into oblivion!!!
hello wake up!!! china is not a communist country for a few decades now.
So you are saying that the Cadres of the Chinese COMMUNIST Party are so stupid and backwards that they want to resurrect Lei Feng and other stupid, backwards, COMMUNIST PROPAGANDA because they are SO SENILE, IGNORANT and ISOLATED from the real China that they have NOT YET NOTICED?

So we agree, and you SHOULD be saying:

WAKE UP stupid Chinese COMMUNIST Party Central Committee!

HA HA HA HA HA HA HA HA HA!
HA HA HA HA HA HA HA HA HA!
HA HA HA HA HA HA HA HA HA!

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