Chapter 67 12. China is also migrating enterprises

In order to develop better and faster, China has mobilized all the funds and used its abundant and cheap labor force in recent decades.The country is in urgent need of revitalization! Western companies took this opportunity to enter China and made huge profits.But while moving away from the mainland, they destroyed the entire industrial chain where they were originally located, and inevitably brought unemployment to the country. Of course, it's not all about that.During the period when capital was transferred to build factories, Western companies themselves also took risks and invested funds.Fortunately, today's rapid economic growth in developing countries and China has finally paid off in the West.

In the process, international businesses have discovered that Asia, like other formerly colonized or post-colonial countries, has many advantages in recent decades: Abundant labor force, few social regulations, difficulty in forming petitions, extremely low wages, near-total flexibility, no upper limit on working hours, can force workers to live in conditions of hardship that their own employees would never accept... except there is serious social unrest Or risk another revolution! Workers have been under the oppression of international companies for a long time, working hard, living frugally, and then planning their own blueprint for economic construction completely independently. and development.

However, after achieving great success, China is not standing still on the way forward, because for a country with a population of more than 1.3 billion, major changes in other areas have also been or are about to come.If the living standards of the Chinese people are further improved, China will become a model for the world in all fields. China has focused its efforts on economic construction and social structure construction, while reinvesting the proceeds in capital to promote economic development. The purpose of this is to get rid of shame (poverty, civil war, Japanese invasion, secession, etc.), organize the people, revive the country, ensure the country's autonomy, and demonstrate China's progress and overall national strength.The achievements of the Chinese people are remarkable, yet in 1970-1990 the redistribution of profits favored business owners rather than the general public.

As reforms roll out across the country, a new policy is being implemented.The policy is designed to reduce inequality and allow the nation to share in the gains of economic growth: education, retirement, wages, working hours, vacations, Social Security, pension minimums, and more.The Chinese government has always stated that at this stage, China is in a transitional stage of socialism. Wealthy provinces join in nation building.The annual economic growth rate of some cities even exceeded 20%!While the economy continued to grow, wages rose and so did inflation.Indeed, the wage level in China is not high, but wage increases of 50%, 70%, or even 100% are not uncommon at all.

A large number of Chinese people participated in the work, so their living standards were further improved.If they find satisfactory travel information, they can pick up their backpacks and embark on a journey without hesitation.They are also able to accept competition and will not hesitate to change jobs frequently.The monthly income of Chinese leaders and engineers can exceed 1,000 Euros. Compared with the high cost of living in the West or Europe, this income is very considerable in China.In the West, wages are trending down, while in Asia they are rising. In addition, although the development of rural areas in the central and western regions is still far from the goal, it is progressing very smoothly.Many Chinese who have not yet become rich, have meager savings, or are dissatisfied with their current situation have returned to their hometowns.

The economy in the rural areas of the central and western regions is underdeveloped, but has a good momentum of development.Those Chinese who return to their hometown hope to find a stable life, a harmonious family atmosphere, find suitable professional opportunities, and especially hope for a slightly more relaxed lifestyle. Chinese townships are similar in size to our medium-sized cities.People travel between urban and rural areas.The returning rural people made room for other Chinese who wanted to go to the cities to seek gold. The shortage of labor force in some industries, the continuous growth of talent demand of some enterprises, the competition in the relationship between the ability of job seekers and the salary ratio, etc., together constitute the current and future dominant factors for the migration of Chinese enterprises.

Naturally, at first Chinese companies only relocated within the national territory, moving their factories to the poorest developing regions in China. However, during the enterprise migration process, a large number of questions arise: where can the production be increased?Where can production reduce production costs?Where to build a factory is less taxable, more maneuverable, and more strategic?This series of question marks has plagued Chinese companies. Of course, only some industries need to relocate factories due to the persistent employment problem that needs to be solved in China.But in the face of the above challenges, more and more industrial production workshops and service organizations are relocating outside China, just as Western countries have done... Let me give you a few examples:

Nile Textile Group, invested by China, is located in the bonded area of ​​SAID, the second largest port city in Egypt, north of the Suez Canal.The group employs about 600 workers, 20 percent of whom are from mainland China and 80 percent are native Egyptians. China Great Wall Computer Co., Ltd. (CGWC) invested in a joint venture in Algeria, which is dedicated to the production of netbook motherboards. A Chinese leather shoe manufacturer builds a factory in Mousdan, Dordogne, France. Great Wall Motors of China builds a factory in Bulgaria.The plant officially entered the British car market in 2011. IM Group (IMGroup) became its distributor in the UK.

Chinese enterprises, whether micro, medium, or extra large, have spread all over the world and appeared in various countries and regions.Today, business owners in China and Asia move some of their production lines to Latin America, Africa, India, Central Europe... When will China become the most delocalized world power, like the United States and Europe?