In the past few decades we have seen China emerge as the world leader in manufacturing. China has created designated economic development zones and increased its infrastructure in coastal areas, and its population has moved to fill jobs in these areas. As demand for workers has begun to meet and sometimes exceed supply, developments have led to fundamental changes that have largely resulted in increased costs that make Chinese produced goods more expensive than they once were.
Charles Fishman, in his December 2012 Atlantic magazine article, “The Insourcing Boom,” noted: “In dollars, wages in China are some five times what they were in 2000—and they are expected to keep rising 18 percent a year.“
Cost concerns along with challenges of doing business in China have led to a number of creative solutions. Some companies have expanded, moved and/or partnered with companies in other Southeast Asian countries that offer demographic and economic conditions similar to that of China’s in years past. We have even heard of Chinese businesses building plants in other countries as they believe location is not as important to their customers as price and quality are.
