2007年2月7日水曜日

Is China eating lunch from all over the world?

According to Rosen, for the past two years, Mexico's Maquiladora system, a darling of the 1990s, suffers a whammy: competition from China. Mexico's comparative advantages such as lower labor costs than the U.S. has given a nice lunch for the workers in Mexico. The popularity of Maquiladora system increased the employment in Mexico and now 3288 Maquiladoras hire over one million Mexican. This system also contributes half of the contry's export.
Mexico grew its global export shares in most of the industries in Maquiladora significantly in the late 1990s. However, as much as Mexico was changing, China was changing faster and growing its share of global exports in most of these same industries even faster. China wins on low labor costs and many other costs of doing business, while quality control, technology diffusion, mid-level management skills, and physical infrastructure are improving fast enough to impress even skeptics and make Mexico's shortcomings in these areas more apparent. Even for the high-weight items which is more expensive to ship, Chinese multinationals have set up manufacturing in North America precisely to compete in segments.
The U.S. government estimates that as much as 85 percent of global textile manufacture sector may be in China in the future: even though for the 27 percent of Maquiladoras and 226,000 workers still in that sector.
China has robbed lunch not only from developed countries, but also developing countries. We cannot estimate how gluttonous China is....

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