Outlook on Light Manufacturing in China: December 2015

Posted by Reading Time: 3 minutes

The below is a sample of Cascade Asia Advisor’s monthly report on light manufacturing across emerging Asia, available for purchase through the Asia Briefing bookstore. The report is a 4-5 page executive-ready assessment and outlook designed to help companies anticipate labor risks and dynamics across key manufacturing countries in Asia. Countries of coverage include Cambodia, China, Indonesia and Vietnam.

Asia_Light_Manufacturing_Outlook_Cascade_Asia

Worker strikes and protests across China reached an all-time high in November, spurred on by workers’ cash needs for the upcoming holidays and exacerbated by an increased number insolvent factories that haven’t paid wage arrears. Protests tend to spike in the months surrounding Chinese New year, but this year has been worse in an environment where factories are experiencing declining sales and cash reserves are dwindling. We expect strikes to intensify in the coming weeks due to disputes over payment of year-end bonuses and further spurred by stricter labor inspections from local government.

Guangdong: The Legislative Affairs Office of Guangdong finished off a month long solicitation of public opinion on December 3rd for a draft law that would provide up to a day of paid leave each month for menstrual pain to female employees that have been given certificates by doctors. The Legislative Office is now compiling the information gathered and will make a decision whether or not to implement it in the near future.

Zhejiang: Timely payment of year-end bonuses will avert unnecessary friction with workers.

Fujian: Fujian has seen a surge in protests over the past three months due to the payment of wage arrears. Protests by footwear workers account for roughly 20% of these which may increase in the coming weeks with the intensity of the holiday production schedule.

On the Horizon
  • December 10, 2015 – International Human Rights Day
  • January 1 – 3, 2016 – Factories closed for New Year’s Day


About
Us

Cascade Asia Advisors is a boutique advisory firm focused on Southeast Asia. They help businesses anticipate risk and make better decisions using forward-looking, localized intelligence. For information about developments mentioned in this report, please contact them at info@cascadeasia.com.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

 ‍

Related Reading

Manufacturing Hubs Across Emerging Asia
In this issue of Asia Briefing Magazine, we explore several of the region’s most competitive and promising manufacturing locales including India, Indonesia, Malaysia, Singapore, Thailand and Vietnam. Exploring a wide variety of factors such as key industries, investment regulations, and labor, shipping, and operational costs, we delineate the cost competitiveness and ease of investment in each while highlighting Indonesia, Vietnam and India’s exceptional potential as the manufacturing leaders of the future.

Cover very smallThe Asia Sourcing Guide 2015
In this issue of Asia Briefing, we explain how and why the Asian sourcing market is changing, compare wage overheads, and look at where certain types of products are being manufactured and exported. We discuss the impact of ASEAN’s Free Trade Agreements with China and India, and highlight the options available for establishing a sourcing model in three locations: Vietnam, China, and India. Finally, we examines the differences in quality control in each of these markets.

Human Resources and Payroll in China 2015
This edition of Human Resources and Payroll in China, updated for 2015, provides a firm understanding of China’s laws and regulations related to human resources and payroll management – essential information for foreign investors looking to establish or already running a foreign-invested entity in China, local managers, and HR professionals needing to explain complex points of China’s labor policies.

1 thought on “Outlook on Light Manufacturing in China: December 2015

    gadgetwide says:

    So, you can save your money from wasting on deals that will only
    give you devices in poor condition. After losing your data because of rebooting or virus attack, you might feel very desperate and frustrated.
    Jonathan Ive is an English born designer that was raised
    in Essex and did all his schooling in the UK.

Comments are closed.