Off-Shoring Chinese Style - The Next Wave
The United States and Europe have been outsourcing and off-shoring manufacturing and services for years... and especially in the manufacturing space, mostly to China! However, a trend is developing where Chinese manufacturers are now off-shoring their own work to other cheaper countries, mostly in southeast Asia.
Dan over at Managing The Dragon has an interesting article Trickling Down - Chinese Off-shoring explaining how this trend is picking up, particularly in the textile industry. Increasing costs in China and duties on textiles in particular are causing Chinese manufacturers to set up shop in countries like Indonesia, Cambodia, Thailand and Bangladesh.
An interesting twist is that unlike in the United States, where outsourcing and off-shoring is clearly seen as a negative, some Chinese companies believe this trend is good for China, freeing them up to focus on higher value added manufacturing and growing their economy stronger. Will Lewis over at Experience Not Logic, in the comments section, questions whether this is just an excuse for Chinese manufacturers to cut costs and wonders if the manufacturing will return once duties are lifted, expected in 2008.