{"id":15192,"date":"2011-06-20T09:34:57","date_gmt":"2011-06-20T07:34:57","guid":{"rendered":"https:\/\/mamchenkov.net\/wordpress\/?p=15192"},"modified":"2011-06-20T09:34:57","modified_gmt":"2011-06-20T07:34:57","slug":"the-end-of-cheap-labor-in-china","status":"publish","type":"post","link":"https:\/\/mamchenkov.net\/wordpress\/2011\/06\/20\/the-end-of-cheap-labor-in-china\/","title":{"rendered":"The End of Cheap Labor in China"},"content":{"rendered":"\n

Slashdot<\/a> links to this article<\/a>, that goes inline with this recent forecast<\/a>.<\/p>\n

In what is supposed to be a land of unlimited cheap labor \u2014 a nation of 1.3 billion people, whose extraordinary 20-year economic rise has been built first and foremost on the backs of low-priced workers \u2014 the game has changed. In the past decade, according to Helen Qiao, chief economist for Goldman Sachs in Hong Kong, real wages for manufacturing workers in China have grown nearly 12% per year. That’s the result of an economy that’s been growing by double digits annually for two decades, fueled domestically by a frenzied infrastructure and housing build-out \u2014 one that, for now anyway, continues apace \u2014 combined with what was for a time an almost unquenchable thirst for Chinese exports in the developed world. Add to that the fact that in the five largest manufacturing provinces, the Chinese government \u2014 worried about an ever widening gap between rich and poor \u2014 has raised the minimum wage 14% to 21% in the past year. To Harley Seyedin, president of the American Chamber of Commerce in South China, the conclusion is inescapable: “The era of cheap labor in China is over.”<\/p><\/blockquote>\n

 <\/p>\n\n","protected":false},"excerpt":{"rendered":"\n

Slashdot links to this article, that goes inline with this recent forecast. In what is supposed to be a land of unlimited cheap labor \u2014 a nation of 1.3 billion people, whose extraordinary 20-year economic rise has been built first and foremost on the backs of low-priced workers \u2014 the game has changed. In the … Continue reading The End of Cheap Labor in China<\/span><\/a><\/p>\n\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[1],"tags":[1971,1593,957],"keyring_services":[],"class_list":["post-15192","post","type-post","status-publish","format-standard","hentry","category-general","tag-china","tag-economy","tag-globalization"],"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":15093,"url":"https:\/\/mamchenkov.net\/wordpress\/2011\/06\/11\/china-is-coming\/","url_meta":{"origin":15192,"position":0},"title":"China is coming","author":"Leonid Mamchenkov","date":"June 11, 2011","format":false,"excerpt":"These days, when discussing globalization with my friends, the discussion often touches upon China. \u00a0And more often than not I hear skepticism when suggesting that China's role is becoming more important and more\u00a0influential. \u00a0While I am of the opinion that China is in its early stages of being a global\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16756,"url":"https:\/\/mamchenkov.net\/wordpress\/2012\/09\/26\/hardware-is-dead\/","url_meta":{"origin":15192,"position":1},"title":"Hardware is dead","author":"Leonid Mamchenkov","date":"September 26, 2012","format":"link","excerpt":"Hardware is dead At these levels there is almost no profit margin left in the hardware business. A $45 tablet is cheap enough to be an impulse purchase at the check-out line in Best Buy. A $45 price puts tablets within reach of a whole host of other activities not\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36281,"url":"https:\/\/mamchenkov.net\/wordpress\/2019\/02\/26\/the-complicated-economy-of-open-source-software\/","url_meta":{"origin":15192,"position":2},"title":"The Complicated Economy of Open Source Software","author":"Leonid Mamchenkov","date":"February 26, 2019","format":false,"excerpt":"Open Source Software is cool and exciting. If you are a developer. But building a business around it is quite challenging. Many have tried and failed. And only a few have succeeded. 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