China outsourcing jobs to Vietnam

[wushijiao]

This is kind of an interesting article from the Washington Post (requires free registration). It's about how Chinese businesses are starting to invest in factories in Vietnam.

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/05/AR2005120502098.html

Much as manufacturers in the United States have transferred jobs to Latin America and just as Western European factories now look to Poland and Hungary, China's modern-day capitalists are increasingly focused on wringing profit from Southeast Asia. They are tapping new markets for sales and farming out work to people willing to labor for less than at home and in even tougher conditions. In a global economy driven by the pursuit of lower costs and fatter profit -- a drive that has led so many multinationals to low-wage China -- Southeast Asia is emerging as China's own version of China.

and

Some investment is propelled by stricter enforcement of environmental standards in some areas of China. According to entrepreneurs in China who spoke on condition of anonymity for fear of angering government officials, leaders in coastal areas have been encouraging pollution-intensive industries such as plastics, steel and electronics to consider relocating to Southeast Asia.

[HashiriKata]

Outsourcing jobs to a less developed country is what many countries have been doing: Japan to Taiwan, Taiwan to China, etc. However, "encouraging pollution-intensive industries to relocate" to other countries seems quite original. I'm not sure if this strategy is wise in the long run though.

[studentyoung]

Outsourcing jobs to a less developed country is what many countries have been doing: Japan to Taiwan, Taiwan to China, etc.

Things like that are likely based on a benefit-oriental principle, which only urges people to hunt for the maximum benefit. If possible, developed countries always try to outsource jobs to a less developed country, so that they can get the lion share.

However, "encouraging pollution-intensive industries to relocate" to other countries seems quite original. I'm not sure if this strategy is wise in the long run though.

That’s the reason why I always suspect maybe the free-trade Utopia described in WTO’s papas will collapse one day. Because only “the global 500 companies” and the likes get the biggest benefits from “free-trade” or “outsourcing jobs to a less developed country”, and almost all workers in developing countries have to be exploited harder and harder to keep their employment, and the natural environment in these counties has to get worse and worse. What’s more, even some workers used to be well-off in some developed countries have to suffer from unemployment or living conditions degraded. Finally both the developed countries and the developing countries will develop a lot of complicated social problems, which also have to cost to a lot to handle with.

Thanks!

[Nordoff]

Wow, interesting thinking there.

Was wondering why the place I work at is moving production to pudong.

Thought it was cheaper workers and gettign into the chinese market.

Some of the jobs going there are the dirtier jobs.

(Oxy cutting dust that kinda thing)