China no longer a cheap production. What you think?

China is known to low-cost production base due to cheap production cost compare to country like Malaysia. Recently, China no longer a cheap production base due to the monthly wages have increase tremendously from 30% - 40% within 5 years.


Many of us think that, since China starts from a very low base the increment of 30% - 40% do not consider expensive. Besides that, China is investing in his labor forces where to become productive liked most of western countries of their workers in less than 10 years.

Another concern on low cost-production is the quality of production. As all of us know, most of its bulk production of goods has a poor quality but it remains cheap. One of the problems facing on China is that manufacturers continue to engage in a practice which someone calls "quality fades." This is the deliberate and secret habit of widening profit margins through a reduction in the quality of materials.

It depends on how you judge whether China is still a low-cost production based or countries such as Vietnam, Mexico or India will be consider the low base in the next 5 years.