Monday, June 15, 2009

India dumping claims on China...

FT article.

It does have some merit. the FT article states that the dumping investigations would take up to 12 months. But, by that time, you would have already lost considerable market share as well as a good portion of your profits to China.

The dumping claims are with merit. In fact, labour costs may have gone down in China due to the downturn. Persons would rather work for $10 a day rather than nothing at all. This is the case for light and heavy manufacturing.

We can't forget Chinese cultural work ethic with regard to their output. While they may not work for free, they will work for little, compared to more jaded western workers who would prefer to wait it out with government checks or work in small service type non production jobs, as opposed to manufacturing without wage hikes in the short future or insurance.
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