Europe Is Now China& s Sweatshop As Great Wall Starts Building …

5 Июн 2014 | Author: | Комментарии к записи Europe Is Now China& s Sweatshop As Great Wall Starts Building … отключены
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Europe Is Now China s Sweatshop As Wall Starts Building In Bulgaria

Bulgarian Prime Boyko Borisov on Tuesday the opening of Great Wall’s new in the northern Bulgarian village of The plant is to be operated jointly by Wall and the Bulgarian firm Motors.

For years, European like Volkswagen have large joint ventures in to gain footholds in the Chinese but now the tables appear to be turning.

on the European market is our strategy, Wall CEO Wang Fengying at the opening festivities.

Within to five years, the company to produce an entire line of in Bahovitsa to be sold in Europe, she Test assembly of the Voleex C10 and the 5 pick-up truck, which for 16,000 to 25,000 leva to €12,800), began already in

In the midterm, Great Wall to assemble around 50,000 per year at the 500,000 square plant. The number of workers is to grow from the current of 120 to 2,000. Initially, the company to sell its vehicles primarily in and neighboring Eastern European like Serbia and Macedonia, but it plans to expand into EU countries.

Great Wall is largest manufacturer of sports-utility and operates plants in around a countries, including Russia, Egypt and Ukraine.

Yesterday Bulgaria, a poor EU but an EU member nonetheless.

Bulgaria, the poorest country, is attractive as a market because it is an oasis of wages and low taxes . Workers are well educated and the country is as the site for a company like Wall to launch. Given wages for factory workers risen considerably in China in years, assembly sites have become increasingly for some manufacturers .

. today

Electric Cars

. And tomorrow all of Europe, and then

So the real question is if Chinese can no longer compete with in a poor EU member, just how are they? And how long before for so many years a happy importer of Bernanke’s monetary courtesy of its currency peg, is no competitive with ever parts of the EU, and then America? this mean that cheap labor force has and the labor migration of peasants from the periphery to the cities no provides cheap labor?

This was the topic of an extended by SocGen from early (posted here ), of which the chart is presented below. news will certainly everyone to have a second hard look at the chart in the top as it means that the Chinese force may indeed have out.

Aside from demographics, the implications on foreign trade and flows are monumental: most for the US, it puts today’s Wal Mart in a very different perspective, as it that China is no longer the of cheap commoditized produce, in turn means that the discount retail vertical may entered the secular sunsetting It also means that producer margins are about to negative, and China is about to all the same EPS boosting gimmicks America has gone through in the 3 years, only in China, there is no safety net, no insurance claims, no EUCs, and no benefits (not to mention else), a wave of terminations lead to far more unpleasant than a bunch of unemployed sitting on their coaches Xbox and watching GOP presidential Most importantly, it means going forward China have zero tolerance for Fed expansion as any hot money will set off an inflationary forest fire as suddenly finds itself absolutely no output gap slack America which allegedly has than enough, even it is really just a secular to the mean shift).

In short, the implications, both and bad, are huge.

And while may be merely the proverbial canary in the coalmine for now, it will be followed by a murder of crows and a kettle of vultures. Because the box has just been opened.

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