China labour costs increase slowing down
According to the lastes data published by the China Bureau of Statistics the steep increases of labour costs in China are slowing down. Data shows an increase of 3.4% which is lower than the increases in the previous years. Increased labour costs face a challenge for garment exporters competing with low wage countries such as Bangladesh. Increased labour costs are unavoidable as workers struggle with rising costs of living in China. A steady but stable increase of labour costs can help the industry hang on longer to it’s market position which is still very competitive. Buyers looking at low wage countries sometimes overlook the fact the labour costs are not the only factor for buying an competitive product. Materials costs and taxes can be much higher in countries with low labour costs because many materials need to be imported from……… China! China is still a one stop shop where you can find your entire supply chain at one place, still at very competitive pricing.
Read the full article by Trading Economics here.