China has always been known for its manufacturing and low cost of labor. A lot of products in the market when you check the tag have the label made in China. Even though these products are from companies from the US or other countries a lot of them were made in China. One of the biggest reasons for this is that labor has always been cheap in China. Compared to other countries that are also big in manufacturing, when it comes to labor China has always been one of the cheapest. This is a good thing for companies because low costs in manufacturing their products mean lower prices and bigger margins. On top of this the economy, of China has been growing even if some say that it has somehow slowed down in recent years. With the growth of their economy, you would expect a lot of progress however problems with the labor and manufacturing sector of China have already started.
In the recent years China has started to encounter problems with labor. The labor sector has seemed to have peaked and problems have started to accumulate. Low cost of labor means people are paid less compared to others and this is why companies prefer to have their products manufactured in China. Aside from the low wages of their workers companies seem to be having problems with paying the wages of their workers. A lot of these wages have been held back a couple of months which is why a lot of the workers in different regions have already started to protest. Price of goods has also started to increase which is why the workers are starting to demand more for their salary. A lot of these Chinese workers have devoted their lives to working in the factories and different industries which is why they are starting to fire back at the companies especially those who are paid unfairly. This poses a huge problem for China because once the cost of labor continues to increase a lot of companies might start to back out and find other sources that would be cheaper compared to the rising costs of labor in China.
The problem here does not only rely on foreign companies finding other manufacturers but also in the treatment of workers in China overall. The problem here is that Chinese companies are failing to pay the right amount of wages or paying on time because these companies are struggling as well. In their current situation they are already struggling just imagine how much of a problem they will get into once the wages for the workers are increased. It seems as though the Chinese government has a challenging task in trying to revive its manufacturing industry through new policies and solutions.
Despite the current situation in China, there are still a lot of companies who are invested in the country. One of the options of China is to branch out and get investors back in their market in order to create new business. It is important for the Chinese government to promote its business relations with other countries especially those in the region and other big economies such as that of the US. Different issues such as territory dispute with other countries and its problems with Japan regarding the Rape of Nanking should be avoided in order to provide new opportunities. Its relations with the US are also one which has huge potential both countries have expressed interest in further improving the current state of business between both countries. Even if some people see the economy of China is slowing down its potential and size should be enough to attract interest from different investors.