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China’s manufacturing exodus

Clear the Air says: so how can airfreight from the PRD through HK International Airport possibly increase and why do we need a third runway and the pollution it will bring ?

South China Morning Post – 17 Oct. 2011

Relentless rises in production costs and wages are forcing mainland manufacturers – and product buyers – to the cheaper markets of Southeast Asia

As overseas buyers flood China’s largest and most established trade show, the Canton Fair, change is afoot in the world’s largest exporter.

Relentless inflation in production costs and wages had forced many manufacturers to relocate production from the Pearl River Delta or Yangtze River Delta to Southeast Asian countries such as Vietnam and Indonesia, some buyers said at the 110th China Import and Export Fair at the weekend.

They said moving offered a solution for manufacturers, who had limited room to raise costs for buyers at a time of a possible double-dip recession in the United States and European Union, China’s largest trading partners. It also came at a time when Beijing’s policy was to force factories to upgrade or migrate.

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