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Seems that salaries in China are once and for all uncompetitive…
That’s to be added to the fact that foreign companies already highlighted difficulties to work efficiently with their Chinese partners (communication, quality respect, IPR…) & to the fact that re-localizing industries closer to the consumer (i.e. Eastern Europe for Western European consumers) would cost less in term of logistics & shipping-transportation.
So, is it the next trend for foreign industries in China???
Adidas, the second-biggest sportswear company in the world, feels that Chinese salaries are now too high and it will transfer some production to more competitive countries, its chief executive said in an interview on Monday."Salaries, which are set by the government, have become too high" in China, Herbert Hainer told the business weekly Wirtschaftswoche.
Chinese production of Adidas sportswear, about half of the group’s total, "is going to decline," Hainer added.
"We have already opened our first factory in India. Countries like Laos, Cambodia and Vietnam will be added," the Adidas boss noted.
"Production will also return to former Soviet republics and eastern European countries," but not to Germany, Hainer said.
