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Hedging China Manufacturing Through India Just Became Corporate Strategy

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And as costs increase, even selling your product in China may not be a sufficient enough incentive to keep a factory and its operating costs in China. By Chris Devonshire-Ellis, Dezan Shira & Associates India and Vietnam are becoming increasingly attractive for manufacturing as China costs increase and workforces become aggressive. The regrettable – and somewhat absurd – instance a few days ago of Chinese workers demanding to be fired in order to gain compensation payments has gained traction around the world. However, while the unofficial hostage taking of the American manager may be shocking, the underlying trend is not that of Chinese worker discontent. The underlying trend is...

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