IBUonline is a B2B foreign trade platform, which has helped many China suppliers and international buyers to complete foreign trade. Now it has conducted a survey to find out the challenges they are facing. Wu Yu, a manager at a Suzhou-based factory, is one of several Chinese businessmen who have been affected by recent developments. Labor shortage and rising labor costs are the main challenges for Wu’s company, a unit of the Taiwan-based computer maker Pegatron Corp. Wu said that most of his employees were born after 1990 and work on average seven months before they seek fresh prospects with other companies. “These youngsters are more ambitious and have bigger dreams than their parents. They want to explore the world and leave the job when they find it boring,” he said. “Like every other Chinese, they also want to own a house. But in Suzhou, that dream is almost impossible to realize. When they realize this, they are disappointed and often leave for a higher-paying job in other cities.” Apprehensions are also growing in industry circles that the floating and shrinking labor force would soon become a grave threat to Chinese companies as they look to make rapid strides in global competitiveness. “A foreign diplomat recently told me that Chinese products are facing the same challenges that Japanese and South Korean products faced earlier from China. The only difference is that the competition is now from other Southeast Asian nations,” said Zhou Shijian, a senior trade expert at Tsinghua University. IBU figured out that manufacturers are facing many challenges now since labor cost is rising, factory rental fee is also rising, and Yuan exchange rate against other currencies also caused some problems. But IBU still thinks foreign trade will be boosted by reformed manufacturers.
Posted on: Fri, 07 Jun 2013 09:25:36 +0000
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