China'S Labor Cost Growth "Forced" Japan

Japan's economic news reported that Japanese retailers commissioned production and sporting goods manufacturers to accelerate the establishment of an overseas production system of "China +1", that is, to establish 1 other production bases outside China and in Southeast Asian countries.

The reasons for this trend are: first, enterprises should disperse production bases to deal with unexpected situations such as urgent increase in production or labor shortage and ensure stable supply; two, avoid the risk of China's labor costs growth.

Ito's function underwear production 95% in China, this year plans to pfer some of its capacity to Southeast Asian countries such as Thailand, and it is expected to reduce its production to 75% in China. The retail giant UNY plans to reduce its clothing production proportion from 74% to 65% in 2014, and increase its production proportion from 9% to 13% in Thailand. ASICS and MIZUNO reduce the proportion of sporting goods such as sports shoes in China, and expand the scale of production in Vietnam and Indonesia.

According to Ministry of finance statistics, imports from China in 2011 decreased by more than 10% from 2007, and imports from ASEAN countries increased for 8 consecutive years.

It is reported that in order to avoid the sharp rise in China's labor costs, enterprises have accelerated the pfer of production to Southeast Asian countries, but the advantages of cheap labor in Southeast Asia are limited, and the risk of rising costs is also increasing.