Quote:
Originally Posted by MAXUM
China is also a communist country and the government controls everything including the work force. Yes they are flush with cash, but much of that is made on the backs of what is essentially government sanctioned slavery.
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This thread is about gas prices but that's not how it works. In fact, because business is growing so fast over there the problem companies have is turn-over.
Employees get experience right out of the university, work for one or two years and then just hop to the next factory that is opening and offering 30% (or more) wages to poach them.
The reason why US companies go to China is the labor rate. Divide you income by 6.5 and that is what your Chinese counterpart makes. The can't buy the machines and tools any cheaper than a US company but the employess running them don't cost as much. China is operating more and more like a democracy every day. No doubt they are still a communist government but economics is pushing them to places they've never been before. China is freaking out with inflation right now. Scary to think what will happen when China has its first hard recession.