Labor Shortage In China's Textile Industry Will Be Replaced By Third World Countries

Chinese market economy Reform is a revolution from scratch. There is no capital and no technology. The only one is abundant and cheap human resources. Starting from the labor-intensive low-end manufacturing industry, how much is the choice that only "comparative advantage" forced.

The textile and clothing industry is the most labor intensive low-end industry, which is a fact. Coupled with environmental regulations and imperfect labor protection laws, textile enterprises can almost do whatever they want at the expense of the environment and the development of labor costs.

If the textile industry says that the prosperity created by this model is a miracle, then the end of this model will suddenly exceed people's expectations.

2010 Pay rise It reflects that the general trend of China's labor shortage has already been hard to resist in reality and will greatly cut down the growth rate of China's economy. China's labor supply is expected to reach its peak and begin to decline in 2015.

At the same time, one of the most labour intensive industries. Textile and garment industry Vietnam and Pakistan are only 1/3 of the labour force in China. In the US dollar, the minimum monthly salary for China's coastal provinces is 117 - 147 dollars, while Bangladesh is only 24 dollars. Bangladesh, a well paid garment worker, earns only 64 dollars a month.

According to the world trade organization's estimate, Bangladesh is now the third largest garment exporter after China and Turkey. Bangladesh has a population of 160 million, of which 70 million of the workforce is estimated to be an alternative to 20 million jobs in China. Li & Fung, a Hongkong based company supplying clothing to business giants such as WAL-MART, increased its production in Bangladesh by 20% last year, while its production in China dropped by 5%.

Of course, there are still many obstacles to be overcome in countries like Bangladesh. Worst of all, education is not universal. Literacy rate is only 55%, far from China's 92% level. As a result, the productivity of workers in this country is only 1/4 of that of Chinese workers.

In addition, the backwardness of infrastructure is also a bottleneck for development. There is no power and power network like China, and even 6 to 7 hours a day is in power failure. However, in the early days of reform and opening up, China was lagging behind and catching up very quickly. Surprisingly, Bangladesh's clothing exports doubled from 2004 to 2009 under such backwardness. Besides, there are many places like Bangladesh in the world.