China; the end of low cost sourcing? Important stuff….

I sometimes worry that like many people who work in and around the public sector I get a little obsessed by political gossip and minor policy changes.  Which Ed / Milliband will win the Labour leadership battle?  Will DCMS have to cut their grants to museums by 10 or 20%?

And around us, the stuff that really matters carries on regardless.

I strongly recommend you read both Jason's post here, about developments in China that suggest it may soon be less of a 'low cost sourcing' option to us.  Wages are rising, and the currency moves may add to cost pressures for customers.  Interesting stuff, and I was quite shocked to read that Spend Matters is 'blocked' in China. I wonder if they can read this blog?  Anyone out there want to let me know?

Jason also links to this recent article, from the Wall Street Journal, which I found fascinating in its discussion of how China really works.  I assumed that their major firms were now acting in a pretty independent and straightforwardly capitalist manner now; but apparently not.

I don't pretend to have any great insights here. We couldn't 'do' anything about China even if we wanted to frankly.  But what does it mean for my daughter and her generation, in a world that it appears will be increasingly dominated by the US,  China and perhaps a few other emerging global players, with the UK and probably Europe in total taking a back seat?

So let's be positive.  Perhaps this is a great time to start a manufacturing business in the UK?  Or if you are a procurement person heavily invested in sourcing from China, maybe this is a good prompt to look at some alternative options?

Discuss this:

Your email address will not be published. Required fields are marked *