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Yoshida in China: If not China, there is always Indonesia

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DMcCunney
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re: Yoshida in China: If not China, there is always Indonesia
DMcCunney   8/17/2012 9:25:31 AM
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China is doing a delicate balancing act. Their number one priority is to grow the economy, and one thing they are hoping for is that their own huge internal market will develop enough to provide the sort of market for Chinese produced goods needed to offset declines in exports to the West as production of goods for Western economies starts to move back home.

DMcCunney
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re: Yoshida in China: If not China, there is always Indonesia
DMcCunney   8/17/2012 9:23:00 AM
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People survive the same way they survived in China - wages are lower, but so are living costs. What tends to be forgotten in the US is that those Chinese factory jobs were a *step up* for those who got the, The hours, working conditions, and *especially* the pay were a lot better than being a peasant on the farm. It would work largely the same in Indonesia, other things being equal.

junko.yoshida
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re: Yoshida in China: If not China, there is always Indonesia
junko.yoshida   8/17/2012 2:31:51 AM
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Thanks for doing the math, chanj. This was something I should have done myself, as a journalist. I appreciate your help, though. By using publicly available information, you have successfully arrived at a conclusion that it is not unreasonable to assume that Indonesia's wages are 60 percent of China's.

chanj0
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re: Yoshida in China: If not China, there is always Indonesia
chanj0   8/17/2012 1:15:16 AM
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Given 10+ years of economic growth of China, I would not be surprise to see the wage in some Asian countries is lower than that of China. According to Jun 2010 news from NYTimes, the average wages of labors worked in Foxconn is about $300 per month. Honda has a salary raise of 24% to 32%. For easy calculation, take 25% raise of $300, Foxconn is paying in average $375 each per month. $225 per month is indeed difficult to live by. Nonetheless, the difficulty is subjected to the cost of living and whether there is better option. Let take a look at the minimum wage of Indonesia and China. According to Wikipedia, Indonesia is at $1027 per year. According to the same NYTimes article, China government set the minimum wage of $140 per month in 2010. It is equivalent to $1680 per year. I guess this is how "Indonesia's wages are 60 percent of China's." come.

junko.yoshida
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re: Yoshida in China: If not China, there is always Indonesia
junko.yoshida   8/16/2012 7:26:43 PM
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According to the Japan External Trade Organization's data, China's wages are 60 percent of China's. (Not "60 percent less")

chanj0
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re: Yoshida in China: If not China, there is always Indonesia
chanj0   8/16/2012 3:32:25 PM
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I have a conversation with a buddy mine the other day. He said the world has been the same all these years. It is because of just the communication and information flow making it seems faster and crazier. I have actually felt the same ways. The world seems to move faster. Every act seems to compress quite a bit in terms of time. For the case of China, I am not too surprise because there is information they can follow. The years of development in the west and the industrialized countries in Asia have provided a good lesson to Chinese government and business owner.

Sheetal.Pandey
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re: Yoshida in China: If not China, there is always Indonesia
Sheetal.Pandey   8/16/2012 10:45:28 AM
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Is it really true wages 60% less than China? How do people survive.What would be the quality of life for people working in the manufacturing conditions in Indonesia.

george.leopold
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re: Yoshida in China: If not China, there is always Indonesia
george.leopold   8/15/2012 11:51:02 PM
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Nor do we want to be since, as we describe below, the value-added for manufacturing is at the systems level: http://eetimes.com/electronics-news/4394159/Does-manufacturing-create-jobs-or-innovation-

Duane Benson
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re: Yoshida in China: If not China, there is always Indonesia
Duane Benson   8/15/2012 8:32:05 PM
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This highlights what care needs to be taken when people talk about bringing manufacturing jobs back to the United States. Depending on how fast and how thorough a manufacturing migration away from China is, China could be faced with anything from a long-term mild recession to unemployment on a massive scale. High volume manufacturing is not a business I'd want to be in.

Bert22306
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re: Yoshida in China: If not China, there is always Indonesia
Bert22306   8/15/2012 8:07:27 PM
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Exactly, there is no difference. The same happened with manufacturing in Japan in the past too, and now China seems on the cusp of repeating that cycle. My only surprise is that the time scales seem to have compressed, although I suppose that shouldn't be a surprise. everything seems to happen at faster speeds as time goes on.

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