China's labor problem

It is one of the major problems in China. The labor cost is more higher than before. A million or so workers in Foxconn get big raises and it will affect the rest of the labor wages. They have:

* Control rising wages. Too high wages will cause the jobs going to other countries like Vietnam which has taken some jobs already.

* Develop local market fast.

* Move to higher value products.

* Improve quality - making the last quick buck is short sighted.

* Keep the one-child policy to reduce future no. of laborers.

It should not take too long for India or other low-wage countries to copy the model of China, but so far there are not too many successful stories.

There are many low-wage countries to replace China's higher wages. However, it is not opening the flood gate as Chins still offers the best deals besides labor.

Some jobs are coming back to US? To me, it is a election trick. $20 wage never compete with $2 wage. There are some higher end jobs coming back but they're just a drop in the bucket. US will NOT gain a single job. China's loss is gain by other countries which have lower labor cost which is one of the factors including infrastructure, political stability, educated work force...