Economics of China 2013

I have been doing business in China since 1985.  I have many Chinese friends as a result.  Here are some anecdotal updates I received recently from friends there.

We all know FOXCONN is a HUGE electronics manufacturer.  Apple and the like.  1.2 million employees! 

I am sure you have heard of Chinese suicides in these factories.  But did you know that the government gives the family 10 YEARS of pay in these cases.?  So in some cases this can be a great way to take care of your family.  The problem became so great they now have nets around the top of these buildings.

Workers used to make $3hr and worked 90 hours a week.  Using western logic, western customers urged raising the wage to $4 hr and changing the work week to 60 hours.  Chinese workers actually want to work 90 hours! So they now get overtime as well.  They can live in the dormitory for $17 a month.  Food is free six days a week, and I hear pretty good, or at least better than western friend chicken and pizzas than management is so proud to offer. so since they work six days a week they only have to buy food on the one day they don’t work.

In China, unlike Obamacare, health care is free.  There is no income tax either,  So these workers can save a lot of money, probably much more than most westerners.  After 5 years many return to their villages to retire.

As incredible as it may sound, China is becoming too expensive.  Low tech things like those digital picture frames have already been outsourced to India.  New low cost factories are being built in Brazil and Russia ( a surprise to me)!  No plans yet to come to America. 

 

Plus as I said before there is virtually no breast cancer in these workers..(A cheap shot at western food, from my prior blog)

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