Made in China -- Not
China may be just starting to lose the momentum that has made it the world's biggest manufacturing economy. True, Chinese factories make tremendous quantities of stuff, and some of it is of very high quality. But as China's booming coastal factories move up the ladder, costs are rising too, including wages, office rents, and utilities. That leaves manufacturers looking to stay on the leading edge of cost-effectiveness with two options: either move deeper into the Chinese mainland, or move to other nations with seaport access. The Economist reports that Intel has raised a previously announced $350 million investment in a Vietnamese chip-making plant to a cool billion. Mark Schifter of Onix tells me he's moved some (though not all) of his company's loudspeaker production to Cali, Colombia, where labor costs more but MDF and veneers cost less. His Chinese factories have to import those things. Also contributing to corporate unrest: recurring concerns over China's wild-west attitude toward intellectual property.
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