China Looking towards Africa for Cheaper Labor!

[barbarossa]

Who would've ever thought Chinese manufacturers opening assembly lines in Ethiopia in search of cheaper labor!

That is exactly what the Chinese shoe manufacturing company, in the news piece below, has done couple of years ago. In a unprecedented move, this major Chinese shoe manufacturing factory called Huajian Shoe, has opened a plant in Ethiopia and now employs hundreds of workers. The company manufactures shoes for U.S markets and supplies International designer powerhouses such as Tommy Hilfiger and Guess, among others. With overtime, the Ethiopian workers there can earn up to $45 a month in wages, a sum that while it may sound not much to many, is still considered a fortune in poverty stricken Abyssinia.



http://www.dw.de/äthiopien-kulturrevolu ... v-17783690

[thehappyone]

So for 30 pounds a month I can employ an ethiopian, damn I might just employ one to constantly send me emails of how great I am

[FarhanYare]

45 dollars per month working overtime, that's practically slavery.

[Basra-]

What a dumb move by the Chinese. What the heck are they doing? If every Chinese company did that, their economy would collapse. They are not like the USA-- which is already established, and has century of being ahead. Also, USA prints their own money. Not to mention, Everybody wants to invest in USA due to its fabulous stability and strong dollar. Are the Chinese suicidal? Well ,good for "Abyssinians" but seriously, this is BAD news for China.

[FarhanYare]

^^
It would have quite the opposite effect. Reduction in cost of production=increased profit which in turn= increased GDP

[Basra-]

Far


That is absurd. STOP looking at the corporate/companies point of view. Production expenses only concerns the employers. I am talking about the entire countries economy. IF u take jobs away from the already improvirished Chinese-- u don't have people with money to shop. No shopping means, no production of goods, which means-- every where stores close and dead ends. Do u want the the Chinese to eat each other? Come to think of it. that's a brilliant idea. High population there, something drastic needs to happen. Aids is already killing them fast.

[FarhanYare]

Well, these corporate/companies at the end of the day will spend their money in China. Thus, in-effect helping create jobs elsewhere.

[FarhanYare]

Plus for goodness sake what would $45 dollars monthly salary buy basra? you make it seem like they've benefited as a whole

[Basra-]

Far

Granted, $ 45 will not be the riches to the Xabaashis-- but it is better than nothing. Right>? While the Chinese-- might be getting 100$ per month. So-- suddenly the 45 doesn't seem small deal anymore right? Suddenly, the companies can save a lot. But, still --not smart. For every Chinese-- the 100 they earn per month, they could spend 40 shopping and living life. Remember, this is a third world country standard of money.

[FarhanYare]

^^
Companies in China have to pay the health cost of their employees that you haven't considered here. In Ethiopia they don't have to pay for that .

[LiquidHYDROGEN]

Basra, the airhead. The chinese companies now have the funds to invest in sophisticated hardware and technology that will cut costs and increase productivity. This move is a sign that they are steering away from cheap labour and manufacturing to highly technical and productive methods. This will ensure more profits, more tax and an increase in wages and benefits for the average chinese worker.

Don't talk out of your arse.

[barbarossa]

Far

Granted, $ 45 will not be the riches to the Xabaashis-- but it is better than nothing. Right>? While the Chinese-- might be getting 100$ per month. So-- suddenly the 45 doesn't seem small deal anymore right? Suddenly, the companies can save a lot. But, still --not smart. For every Chinese-- the 100 they earn per month, they could spend 40 shopping and living life. Remember, this is a third world country standard of money.

Basra, in today's China, labourers don't come as cheap as they once did. According to statistical data, on average, a Chinese factory worker makes a little over $300 a month. Now compare that with the $45 a month the half starving Ethiopians are making, and you will instantly appreciate the sheer ingenuity of this company in taking the decision to move its shoe factory to Ethiopia where thousands of workers are to be had at unbeatable, rock bottom wages.

[Basra-]

Barbarossa


I am actually shocked??


"on average, a Chinese factory worker makes a little over $300 a month"

That is good actually. This means-- The Chinese workers are really getting good and skilled and slowly will reach the par standard of the west employee. (not really- but getting there)


Well --it will make sense for Chinese companies to go find Xabaashis for just 45! This 45 to Xabaashi will look like 300 for the Chinese currently! Isn't relativity just amazing concept???






PS Hydrogen---any time a country looses a job---that is bad business for the country. If the country was so

"The chinese companies now have the funds to invest in sophisticated hardware and technology that will cut costs and increase productivity"



If that is the case, they wont need Xaabaashi labor right? If they are so advanced--they would just be in China or in Ethiopia with their smart technological machines! Again--Hydro u r thinking through your "FAT" brain. I wish they invented a quick fat lose machine for u macaanto!

[FarhanYare]

^