China’s manufacturing edge dulls

Filed under: Daily News |

The Associated Press

SHANGHAI, China _ China is fast losing its manufacturing competitiveness in some industries, and companies need to upgrade their operations there to stay profitable, according to a survey released today.

The study comes amid reports that thousands of manufacturers, both Chinese and foreign, are shifting operations away from coastal regions, where labor and other costs are eroding their profitability, to inland areas or other countries.

The “China Manufacturing Competitiveness” survey by the Shanghai Chamber of Commerce found that more than half of the 66 foreign-invested companies responding believe China is losing its competitive advantage over other “low cost” countries, such as Vietnam and India.

“The days of easy China manufacturing are at an end,” said Ted Hornbein, chairman of the American Chamber of Commerce in Shanghai’s Manufacturers Business Council. “You can’t just view it as a workshop anymore.”