China Labor Costs Compatible To US 4 Years
Rapid wage increases are threatening China’s competitiveness, but improved productivity and other advantages mean it will continue to attract investors, analysts say.
Labour costs in China would match those of the United States within four years, catching up with eurozone countries in five years and with Japan in seven, the French bank Natixis forecast in a study last month.
China “will soon no longer be a competitive place for production given the strong rise in the cost of production”, the bank said.
It is a view backed by the respected Boston Consulting Group (BCG), which said in a study last August that by around 2015 manufacturing in some parts of the United States would be “just as economical as manufacturing in China”.