As we known, “Chinese Price” is thought as the cheapest in the world. Although it is cause the panic between manufacture enterprises, it owns the overpowering charm to the buyers.At the same time, Allen Choate, the deputy governor of Asia Fund, said some new viewpoints at this point on Saturday:” I don’t think Chinese Price is existent.”
The cost of all manufacturers are on the rise in Pearl River Delta, and it is has spread north, east of Chinese Mainland and west of Hong Kong. Raw materials and energy prices are rising. Tax rate also increased because Chinese government decided to cancel the concessions given to exporters.
On July 1, the minimum wage was increased for the third time. The implementation of anti- pollution system begins to reduce the corporate profits.
Hundreds of thousands of clothing, shoes and electrical consumer buyers loved Pearl River Delta. But now, prosperity goes far away from this romantic place. For many years, the region has provided low-priced goods for American stores but comes forth exporting inflation at present.
Myron Mike Ullman, the president of J.C. Penny and the U.S. National Retail Federation, collected first-hand information when he visited Asia recently. He considers that Penny can control the price increase, but other retailers are not so lucky. “we can control costs of clothing when rise in costs, but not the retail. In the first half of 2009, the retail prices will go up for 8%.”
Richard W. Fisher, the president of Federal Reserve Bank, said retailers told him that Chinese commodity prices have increased 5-10 percents. Wages in China is boosting at a high speed. Not just the Pearl River Delta, ChangjiangRiver area and Shanghai enterprises also faced the dilemma of rising costs and labor shortage.
The Chinese Government now encourages business owners to make collective bargaining with workers. The latest monthly wage is 1,000 yuan, or about 130 U.S. dollars. China's smog and water pollution is an international embarrassment, and now it is has attracted attention.
Mr. Choate said: "They are working hard to develop value chains to improve the value of the manufacturing and service industries. At the same time, some shoes and clothing factories are transferring to lower-cost local, such as Vietnam.”
