[Y^^]: The Stopping Enginge, China?

[Y^^]: The Stopping Enginge, China?

This post is solely based on some friends. There is no statistic grounds.

I heard that China is industrialized enough, so Chinese Government select which industry the foreigners can invest. FDI is allowed in high tech industries only.

However, when I talked to some business men, they said that they did not want to maintain factories in China not because of the regulation but because of the wage and long holidays. There is no definite advantage compare to South East Asian countries any more.

They were considering to move to other countries. They said, if they built a new factory they would not build in China.

Twice a year, there is very long national holidays. Before the holiday the workers do not work and just wait for the holiday for about a week. After the holiday, they need one more week to adapt themselves to the work. One month passes in a holiday. There are two very long holidays. That means two months of a year is wasted. Moreover, the companies should give some presents to the employees. Productivity is lower than what they thought before.

There are a lot of people in China, but they avoid hard works. So, nowadays many people prefer Vietnam. The wages of Vietnam are higher than those of Bangladesh or Cambodia.

The zeal for education in Vietnam is high, and the employees are well educated. Someone said the national traits of Vietnam closely resembles those of Korean. The wages are much lower than Korea, though.

Of course, the basic science and advanced technology of China is superior. Also the huge market can not be ignored. China will continue to play an important role in the world. But the role of China as a dynamic force for growth may evanesce.