With China's yuan appreciation, in China has branch of American companies are considering various measures to offset rising labor and export costs. Some companies consider all factories out of China will be.

In the past two years, running shoes and clothing manufacturers Brooks Sports in China Inc. Every hour wage rate increased by 50%. Because the renminbi appreciation, the company is constantly accelerating elsewhere in Asia to produce goods plan. The company for Berkshire ha and wei company (of his Berkshire Hathaway Hathaway Inc.) of subsidiary company.

Company chief operating long bo han (David Bohan), said the company is considering using outside China of existing factory Chinese partners, as well as Indonesia and Vietnam's new partners.

Although Brooks production out of China will may save exports and labor cost, but bo han said the company before the act have so many things to evaluation. He said, some of the major concern including outside China workers quality and production efficiency, and use the port and the convenience of suppliers. Because of logistical aspects of the problem, bo han said, once choose a partner, he is expected to take a year to 18 months time to start in Indonesia and Vietnam production.

At the same time, chief executive Jim webb (Weber), said the company would be expected to increase in the price of some products and other products cut profits.

Last month, because China's leaders, improve the official exchange rate of RMB and a big revaluation, this suggests that regulators would like to see the yuan to the speed of the higher than market expectations rise, as the method of inflation. Trade market, on Monday against the dollar rose to 6.4599 to the dollar, over the past year the yuan's rise against the dollar by 5.7%.

Long-term since, the American politicians have been leads global urged China to allow the yuan against other currencies to float. This will mean the end of the Chinese government will remain at the economists and foreign government said the level of exchange rate for low policies to improve China's export sector in the manufacture and relative to the competitiveness of the overseas rivals.

United Technologies Corp.) remains (as chief financial, Greg (long beach, said Hayes) floating the yuan may make the company's labor costs more expensive. In the American state of Connecticut products including west coase Sikorsky helicopter base (), Otis (Otis elevator and Carrier (Carrier) air conditioning equipment, etc. Hayes says the company in China about 17000 employees, in the past five years the salaries of the workers doubled.

Hayes said, because they have to Labour costs are expected to rise, this company may speed up its factories in China the process automation. Hayes said, in guangzhou a smoke detector assembly plant, united technologies use machines replaced workers, these machines can part will part assembly to printed circuit board. Hayes said, although these machines is expensive, but it can cut crews and increase production capacity. Hayes said that, as a result of rising labor costs, promote automation will help the companies to cut staff in China scale.

Hayes said that, as a result from the cost Angle, the competitiveness of China in the lower, united technologies are looking into Vietnam and Malaysia's factory. But the sea, said, moving production to the cost of other countries is very high also, united technologies also will be affected by the influence of exchange rate fluctuations, move is a long process. Hayes said, unless steep rises in the cost of labor, otherwise we may not be the moving factories.

Under the pressure of competition, united technologies aside for prices.

Harman International sound design manufacturers Industries Inc. From Chinese manufacturers there the parts of the purchasing accounted for about 25% of the total. The company's chief executive BaoLiHua (Dinesh Paliwal) said, with the expiration of the contract, the cost of these parts will rise. So in other areas of the investigation Harman also the suppliers, company research and development team is looking for ways to replace some of the parts.

Harman also is working with Chinese suppliers, to help these suppliers move to wage growth not so severe in other areas. BaoLiHua said, he has to convince some parts manufacturers and magnet manufacturers transferred to low cost in the western region of China.

However, Harman also is preparing to expand production scale in China: this summer is the company ready for new open two factories, add about 40000 square meters of production workshop and more than 1100 workers. Although compared to a few years ago higher labor costs, and a lot of the renminbi, the magnitude of the higher labor costs will increase, but BaoLiHua said the chance of making money in China can offset the rising cost of obviously.

In fact, for China's fast-growing middle class and sales target for the aim to middle class of multinational companies to rising yuan may be a Gospel. The us Commerce Department data show that in 2010 the United States exports totaled us $92 billion, is $2005 in two times more.

Electronic payment Systems Inc. The company VeriFone chief executives of dragon (Doug berger Bergeron) says, as the consumer wealth increases, the acceptance of credit card gradually enhance, China has become one of the fastest growing VeriFone market.

Even so, said he is willing to improve berger dragon prices to offset the increased cost of export, he said there is no doubt that we will pass on the cost to ensure that profit margins.

Source "the Chinese textile nets"

Edit: lara