While China may not be investing substantially directly in manufacturing in its Asian neighbors, as Japan did in the 1980s, the region is benefiting nonetheless from investment in Asian production bases because of the spillover effect of rising labor and production costs in China itself, according to two studies* released last week by the Hong Kong Trade Development Council. That phenomenon appears almost certain to increase.
China's Pressure from Rising Labor Costs
China's Pressure from Rising Labor Costs
China's Pressure from Rising Labor Costs
While China may not be investing substantially directly in manufacturing in its Asian neighbors, as Japan did in the 1980s, the region is benefiting nonetheless from investment in Asian production bases because of the spillover effect of rising labor and production costs in China itself, according to two studies* released last week by the Hong Kong Trade Development Council. That phenomenon appears almost certain to increase.
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