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China Starts Outsourcing From ... the US

Soulskill posted about 3 months ago | from the wait-what dept.

China 274

hackingbear writes: Burdened with Alabama's highest unemployment rate, long abandoned by textile mills and furniture plants, Wilcox County, Alabama, desperately needs jobs. And the jobs are coming from China. Henan's Golden Dragon Precise Copper Tube Group opened a plant here last month, employing 300 locals. Chinese companies invested a record $14 billion in the United States last year, according to the Rhodium Group research firm. Collectively, they employ more than 70,000 Americans, up from virtually none a decade ago. Powerful forces — narrowing wage gaps (Chinese wages have been doubling every few years), tumbling U.S. energy prices, the rising Yuan — up 30% over the decade — are pulling Chinese companies across the Pacific. Perhaps very soon, Chinese workers will start protesting their jobs being outsourced to the cheap labor in the U.S."

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First post (5, Funny)

GameboyRMH (1153867) | about 3 months ago | (#47308109)

Welcome Chinese overlords!

Re:First post (2)

K. S. Kyosuke (729550) | about 3 months ago | (#47308369)

Cue worker migration and Star Spangled Red-and-White Peril in China.

Re:First post (1)

wisnoskij (1206448) | about 3 months ago | (#47308629)

I think you mean: (Hunyíng zhngguó bàzh!)

Re:First post (4, Funny)

wisnoskij (1206448) | about 3 months ago | (#47308663)

OK a lot of the characters disappeared when that was posted. It should look something closer to "Huanyíng zhongguó bàzhu!"

Re:First post (5, Insightful)

Karmashock (2415832) | about 3 months ago | (#47308631)

Actually we've seen this happen in the US for many years with a lot of foreign companies. Often because US companies fail to resolve labor or regulatory issues and a foreign company cuts through the issue to find a way to produce products in the same place without incurring many of the previous costs.

Toyoda for example has done this repeatedly and been able to produce cars more cheaply in the US then many of their American competitors using the same labor.

A lot of it boils down to legacy corporations that have grown too large and inefficient.

Things need a reboot on occasion. Many large companies should go through a serious reorganization top to bottom including the renegotiation of all contracts to take into consideration new opportunities and concerns.

Re:First post (2)

petermgreen (876956) | about 3 months ago | (#47308781)

Sometimes what they do is set up in the US but in a different part of the US. This allows them to sidestep protectionist import restrictions while also drawing from a different labour pool and avoiding existing unions.

Toyota has a number of factories in the US but none in detroit or even in mitchagan.

Re:First post (2)

Noah Haders (3621429) | about 3 months ago | (#47309183)

actually, it's not so much about being domestic or international as it is where you build your shizz. Car manufactuirng is exploding in the South, across KY, TN, AL, and many other states. it's all the major companites. toyota, honda, hyundai, GM, Mercedes, BMW. The plants in the south are non-unionized. and its especially appealing for foreign automakers cuz then their cars are "made in america" for the purposes of taxes and international trade issues.boeing also wanted to move from WA to the south, I forget where, but the thing was held up because the unions went to Obama. I forget how that turned out.

simple fact is, it's hard to build cars in the midwest, nobody wants to do it. a lot of legacy stuff is there, and a lot of things are bound by contractual relationships and institutional knowledge, but if you're starting fresh then might as well put the plant in the best location.

Re:First post (2)

DerekLyons (302214) | about 3 months ago | (#47308795)

Toyoda for example has done this repeatedly and been able to produce cars more cheaply in the US then many of their American competitors using the same labor.

Toyota has been building new factories in depressed areas, low wage areas, and union free areas. Their American competitors aren't quite so free to do so.
 

Many large companies should go through a serious reorganization top to bottom including the renegotiation of all contracts to take into consideration new opportunities and concerns.

That is... not nearly so simple as you imagine. Especially if unions are involved.

oh boy (4, Funny)

k6mfw (1182893) | about 3 months ago | (#47308123)

can't wait for those whining on the forums, "damn Americans stealing jobs from hard working people."

Re:oh boy (0)

Anonymous Coward | about 3 months ago | (#47308265)

Tell the Chinese don't up like a O bum... ;-]

Re:oh boy (2, Interesting)

bluelip (123578) | about 3 months ago | (#47308393)

China's downfall in production will come when the factory workers start having unions that are too powerful.

Re:oh boy (5, Insightful)

ultranova (717540) | about 3 months ago | (#47308657)

China's downfall in production will come when the factory workers start having unions that are too powerful.

Isn't it strange how success is always the accomplishment of awesome management but failure is never the fault of incompetent one?

In any case, you're wrong. The world is running out of hellholes that tolerate slave labour, so those companies that can't turn profit without it have nowhere to go and no future save bankruptcy auction. That should make this the time of great opportunity for every businessman who can actually live up to their own hype; based on the amount of whining we're hearing instead of eager expectation, I guess most of them know the truth about themselves...

Success has many parents. (1)

jbeaupre (752124) | about 3 months ago | (#47308785)

Failure is an orphan.

Re:oh boy (1)

TheDarkMaster (1292526) | about 3 months ago | (#47309007)

...The world is running out of hellholes that tolerate slave labour, ...

This. Exactly that. People are not made to work like machines until they die of exhaustion, people are made to live as people. And the work is only a means to live, not the reason of the life.

Re:oh boy (1)

cyberchondriac (456626) | about 3 months ago | (#47309155)

I think that's a bit optimistically premature. When Asia finally does eventually get around to stopping that practice, Africa will probably be the next, last bastion for poor and oppressed labor. It's always been the way of third world countries trying to compete in a global market.

Re:oh boy (1)

Citizen of Earth (569446) | about 3 months ago | (#47309235)

The world is running out of hellholes that tolerate slave labour

And you're saying that's a bad thing? It tends to point out the complete failure of charity, well-wishing, and flowery language to lift people out of absolute poverty and the massive success of the invisible hand of capitalistic greed accomplishing this social good without even wanting to.

Re:oh boy (1)

dywolf (2673597) | about 3 months ago | (#47309041)

Ma, the anti union troll is talking again.

oh boy (1)

Anonymous Coward | about 3 months ago | (#47308515)

Here it comes: The unboxer rebellion!

Funny ... (2, Insightful)

gstoddart (321705) | about 3 months ago | (#47308159)

Powerful forces â" narrowing wage gaps (Chinese wages have been doubling every few years)

Funny, ours have been halving.

So it really is a race to the bottom.

Re:Funny ... (0)

amiga3D (567632) | about 3 months ago | (#47308197)

The bottom would be Mississippi, not Alabama.

Re:Funny ... (3, Funny)

alta (1263) | about 3 months ago | (#47308211)

As someone originally from Alabama, Thank you :)

Re:Funny ... (-1)

Anonymous Coward | about 3 months ago | (#47308539)

at least we aren't inbred simpletons who are mired in coal with Stockholm Syndrome like Appalachia.

Re:Funny ... (1, Insightful)

Anonymous Coward | about 3 months ago | (#47308329)

Rather a race to the middle. It's all about balance. There's just no way for one group of people to earn more than another if not for their greater productivity. If a US worker can generate the same amount of wealth as a Chinese worker, or Vietnamese, or whatever, why should they earn more? You'll say because cost of living is higher. I'd say that's true, but so is your standard of living.

A meeting at the middle is eventually going to happen. Sucks for comparatively wealthy westerners, but it sure is great for all those poor people around the world being uplifted from poverty.

Re:Funny ... (1)

oh_my_080980980 (773867) | about 3 months ago | (#47308385)

Spoken like a true dweeb who doesn't know the working conditions.

Re:Funny ... (0)

Anonymous Coward | about 3 months ago | (#47308679)

Spoken like a true dweeb who doesn't know the unemployment conditions.

Re:Funny ... (1)

russotto (537200) | about 3 months ago | (#47308849)

A meeting at the middle is eventually going to happen. Sucks for comparatively wealthy westerners, but it sure is great for all those poor people around the world being uplifted from poverty.

Unfortunately, wrong. The actual middle is still abject poverty. No sooner will those poor people be uplifted than the next billion will drag them down.

Re:Funny ... (2, Insightful)

pushing-robot (1037830) | about 3 months ago | (#47308345)

More like "dropped on average a few percent in real purchasing power from its peak a couple decades ago".

Considering how many of the world's problems are caused, enabled, or exacerbated by abject poverty, it seems a small price for bringing a couple billion people in the BRICS nations out of it.

Unless you're one of those who think you were born deserving more than everyone else in the world.

Re:Funny ... (1)

gstoddart (321705) | about 3 months ago | (#47308453)

Oh, I have no problems with fighting poverty.

But I also think it's large multinationals who benefit the most, as they just shop around to find the people they can abuse for the least amount of money until they move on elsewhere.

It's the huge profits reaped by gutting your domestic workforce and applying a zillion times markup on your product like Nike does I dislike.

Because that's pretty much corporate serfdom.

Re:Funny ... (3, Insightful)

jythie (914043) | about 3 months ago | (#47308491)

It also can not last. The reason multinationals are raking in such large profits from cheap labor is OTHER companies are still paying well. It only works as long as your target customer is well off but your own work force is poor, but if the pattern continues then the target customers will bit by bit also be replaced by poorer workers and that ripples though.

Re:Funny ... (0)

Anonymous Coward | about 3 months ago | (#47308713)

How do you propose fighting poverty in poor countries without those countries getting some jobs?

Re:Funny ... (0)

Anonymous Coward | about 3 months ago | (#47309023)

Only because my people invented, forged, and built the modern world.

I"m sorry there are shitty 3rd world cultures that were too inept to contribute to Civilization, but their collective ineptitude is their problem. It's only mine if I make the mistake of involving them in it.

Re:Funny ... (1)

K. S. Kyosuke (729550) | about 3 months ago | (#47308419)

So it really is a race to the bottom.

No, it's just that at last, the Invisible Hand is taking all those historical inequities and smearing them out into a broad global layer of what a Pakistani bricklayer would consider to be prosperity.

Only communists hire Americans... (0, Offtopic)

Anonymous Coward | about 3 months ago | (#47308169)

God Bless America.

Re:Only communists hire Americans... (0)

NoNonAlphaCharsHere (2201864) | about 3 months ago | (#47308527)

Hiring Americans is un-American.

Re:Only communists hire Americans... (0)

Anonymous Coward | about 3 months ago | (#47308839)

No, hiring american union workers is un-american. Lazy fucks.

Leverage the poor, whoever they are (2, Insightful)

Old VMS Junkie (739626) | about 3 months ago | (#47308175)

Businesses will continue to take advantage of poverty, wherever it exists and whoever it is. Greed is blind to creed and color. All it cares about is profit.

Re:Leverage the poor, whoever they are (5, Insightful)

Anonymous Coward | about 3 months ago | (#47308309)

Alternatively: Businesses will continue to reduce poverty, wherever it exists and whoever it is. Greed is blind to creed and color. All it cares about is profit.

Re:Leverage the poor, whoever they are (0)

oh_my_080980980 (773867) | about 3 months ago | (#47308411)

LMOL - right...business will continue to fight regulations that protect people and avoid paying taxes that pay for services that they uses...

Re:Leverage the poor, whoever they are (4, Interesting)

bjwest (14070) | about 3 months ago | (#47308513)

You would rather the unemployed remain so, rather than get a job, however little the pay? So long as we continue the fight to a living minimum wage (and win it), I see no problem here. Every dollar they earn is one less taxpayer dollar they receive.

false choice (3, Insightful)

globaljustin (574257) | about 3 months ago | (#47308643)

You would rather the unemployed remain so, rather than get a job, however little the pay?

that's a dumb dichotomy and it shows the weakness of your position

obviously, in a perfect world we wouldn't need any remediations...we'd all ***rather*** not have the problem at all

the minimum wage is the same as anti-trust laws...it plugs a hole in capitalism...just as a mononpoly is the antithesis of free market competition, so is it harmful when companies monopolize the factors of employment

we need anti-trust laws for the same reason we need minimum wage laws: unchecked corporate greed

Re:false choice (0)

Anonymous Coward | about 3 months ago | (#47308789)

It guarantees that someone who can perform a job for less than the minimum wage doesn't get a job wherever the minimum wage is enforced.

not a solution to a non-problem (1)

globaljustin (574257) | about 3 months ago | (#47308885)

It guarantees that someone who can perform a job for less than the minimum wage doesn't get a job

which doesn't matter at all

the problem is unchecked corporate greed...that's what drives all of this

Re:Leverage the poor, whoever they are (-1)

Anonymous Coward | about 3 months ago | (#47308311)

George Bush's plan for bringing jobs to America was to have policies which turn the US into a third world country, causing the global financial elites to want to exploit us again. Nationality doesn't matter. Everywhere in the world, it is the 1% vs everyone else and the battle cry of these aristocrats is Austerity Now!

MOD PARENT UP (1)

Tailhook (98486) | about 3 months ago | (#47308563)

This is why Bush gave China Most Favored Nation trading status which eliminates almost all finished-good tariffs and port authority scrutiny.

Re:Leverage the poor, whoever they are (0)

Anonymous Coward | about 3 months ago | (#47308601)

Wow, I didn't realize there was a partisan argument going on, but you just lost it by bringing up Bush.

Re:Leverage the poor, whoever they are (2)

roc97007 (608802) | about 3 months ago | (#47308313)

I'm told that "least cost country" is used in manpower discussions so much now, it's been abbreviated to LCC to save time.

Re:Leverage the poor, whoever they are (0)

Anonymous Coward | about 3 months ago | (#47308613)

Soooo. A poor unemployed person lives in country X with no money to support themselves. Some corporation gives them a job, they can now purchase the necesities of life they can't produce on their own. This is worse than the alternative (no job, no house, no food) how?

Re:Leverage the poor, whoever they are (0)

Anonymous Coward | about 3 months ago | (#47309099)

Because while poor and unemployed, they are noble and virtuous and good. Getting a job that someone else doesnt have means they are greedy and selfish and thinking only of themselves - they may as well slap the face of everyone who is unemployed. No one should have to work - the only reason people do have to work is because other people are selfish and dont give them their money.

How do you like it now? (0)

Anonymous Coward | about 3 months ago | (#47308193)

For years I put up with hardcore socialists complaining about the theory that a rising tide lifts all boats (ie: Export wealth properly and everyone will benefit). I can't wait for them to be the first in line to refuse these jobs.

Re:How do you like it now? (0)

Anonymous Coward | about 3 months ago | (#47308473)

They aren't government jobs, so they wouldn't be interested.

GOP troll straw man (1, Troll)

globaljustin (574257) | about 3 months ago | (#47308687)

hardcore socialists complaining about the theory that a rising tide lifts all boats (ie: Export wealth properly and everyone will benefit)

I know many "hardcore socialists" personally, and read/watch several public figures who are "hardcore socialists" in various media...and NONE make the argument you claim they make

no one says that

except GOP trolls creating a straw man...you're a GOP troll, trying to create a straw man

GOP troll straw man (1)

Anonymous Coward | about 3 months ago | (#47308759)

If you say it enough times then perhaps it will become true!

This I didn't expect. (4, Funny)

TigerPlish (174064) | about 3 months ago | (#47308195)

I was thinking some years ago "If all the jobs went to China because no one in the US wants the factory worker life, who is gonna build Chinese doohickeys when *they* get tired of the factory life?"

I was thinking India. Or Malaysia, or Chile or something..

But not the USA. I never even considered that possibility.

WTF. This world no longer makes any sense to me.

Re:This I didn't expect. (3, Insightful)

kick6 (1081615) | about 3 months ago | (#47308221)

I was thinking some years ago "If all the jobs went to China because no one in the US wants the factory worker life, who is gonna build Chinese doohickeys when *they* get tired of the factory life?"

I was thinking India. Or Malaysia, or Chile or something..

But not the USA. I never even considered that possibility.

WTF. This world no longer makes any sense to me.

It makes perfect sense. After enough time of disparaging the factory life, Americans are finally realizing that it beats the alternative.

Re:This I didn't expect. (1)

TigerPlish (174064) | about 3 months ago | (#47308395)

It makes perfect sense. After enough time of disparaging the factory life, Americans are finally realizing that it beats the alternative.

I can make sense of it at an intellectual level, it's just my gut reaction to go "WTF" -- it's a bit counter-intuitive.

The news is welcome, I just wish American companies would start making things in USA again. I know we can do it. I suppose in time, we will.

Re:This I didn't expect. (1)

Registered Coward v2 (447531) | about 3 months ago | (#47308485)

It makes perfect sense. After enough time of disparaging the factory life, Americans are finally realizing that it beats the alternative.

I can make sense of it at an intellectual level, it's just my gut reaction to go "WTF" -- it's a bit counter-intuitive.

The news is welcome, I just wish American companies would start making things in USA again. I know we can do it. I suppose in time, we will.

Once you factor in productivity and transportation costs, amongst others, the cost gaps narrows and possibly even closes. They're not doing a 1 for 1 replacement of workers so hiring fewer, but more expensive and more productive US workers, begins to make sense. In addition, there can be political considerations as well.

Of course, being Alabama, they will promptly arrest and jail the Chinese managers who come over to check on the plant unless they can prove they are in Alabama legally.

Re:This I didn't expect. (2)

lister king of smeg (2481612) | about 3 months ago | (#47308695)

Of course, being Alabama, they will promptly arrest and jail the Chinese managers who come over to check on the plant unless they can prove they are in Alabama legally.

its Alabama not Arizona

Re:This I didn't expect. (1)

Registered Coward v2 (447531) | about 3 months ago | (#47308841)

Of course, being Alabama, they will promptly arrest and jail the Chinese managers who come over to check on the plant unless they can prove they are in Alabama legally.

its Alabama not Arizona

I know. Arizona arrests you for looking Hispanic, Alabama, so far, for driving while German. In the name of equal opportunity they may extend that welcome to the Chinese as well.

Re:This I didn't expect. (2)

bledri (1283728) | about 3 months ago | (#47308627)

It makes perfect sense. After enough time of disparaging the factory life, Americans are finally realizing that it beats the alternative.

I can make sense of it at an intellectual level, it's just my gut reaction to go "WTF" -- it's a bit counter-intuitive.

The news is welcome, I just wish American companies would start making things in USA again. I know we can do it. I suppose in time, we will.

It's already turning around. Tesla builds its cars in Fremont, CA and they're planning to open a battery factory somewhere in the US. SpaceX makes rockets in Hawthorne, CA. SolarCity bought Silevo and is planning to build a solar panel factory in NY. Now we just need to convince someone besides Elon Musk (which is actually happening [thomasnet.com] .)

Re:This I didn't expect. (3, Informative)

TheDarkMaster (1292526) | about 3 months ago | (#47309071)

The good thing about Musk (and guys like him) is that profit is not the sole and exclusive purpose of the company. They are looking to do something well and profit is just a welcome consequence of this, not the sole purpose..

Re:This I didn't expect. (5, Insightful)

oh_my_080980980 (773867) | about 3 months ago | (#47308445)

The only people who were disparaging manufacturing jobs were corporations who moved them overseas.

Re:This I didn't expect. (1)

LordLimecat (1103839) | about 3 months ago | (#47308797)

Being richer than 95% of the world sure is a tough job, but someone has to do it. Plus, we get to complain about it the entire time, so theres that.

Re:This I didn't expect. (1)

Lodlaiden (2767969) | about 3 months ago | (#47308919)

Are you from China?

Re:This I didn't expect. (5, Funny)

Krishnoid (984597) | about 3 months ago | (#47308337)

WTF. This world no longer makes any sense to me.

You're apparently about ten years [dilbert.com] behind the times. But considering history probably repeats itself, you're likely also about ten years ahead of the times.

Re:This I didn't expect. (1)

roc97007 (608802) | about 3 months ago | (#47308371)

I'm not sure how these thoughts connect, but I was thinking some years ago "If all the jobs went to China because it improves profit margins, who will be able to afford the products that are shipped back to the US?" I mean isn't outsourcing by its very nature a strategy that only work if you're riding the leading edge? Because what comes afterwards is a lot of companies fighting over a smaller and smaller pool of consumer discretionary income.

Re:This I didn't expect. (1)

jythie (914043) | about 3 months ago | (#47308511)

In general the pattern has indeed been to move labor to places like India, this case is a bit of an anomaly or a change.

Re:This I didn't expect. (0)

Anonymous Coward | about 3 months ago | (#47308557)

Crummy healthcare.
Crummy democracy.
Crummy wages.
People are seen as tools for the economy and corporations, instead of the other way around.....The US is the most powerful 3rd world nation on the planet.

Re:This I didn't expect. (0)

Anonymous Coward | about 3 months ago | (#47308621)

It doesn't sound like they are planing to ship stuff back. They are just making the product closer to where it will be sold. Also, after a huge economic crash, followed by a jobless recovery, years of plant closings, a weak currency, and a surge of tea-bag politicians who think the poor were created by god as a permanently subservient work force; America is rather ripe for the pickings. Closed plants make for an easy place to start business. Plenty of desperate people. And local politicians who gladly allow business to shirk all their responsibilities to society and will shift that burden directly onto the poorest people who cannot escape it and should be happy that the aristocrats, with their dynastic wealth, are willing to let them have anything at all.

Americans (-1)

Anonymous Coward | about 3 months ago | (#47308225)

Just wondering. Chinese have thousands restaurants and shops in every state including Alaska, employing nearly only ethnic Chinese. Are these *ahem* Americans part of the mentioned 70 000 figure?

USA Is Winning!! (0)

Anonymous Coward | about 3 months ago | (#47308233)

the race to the bottom :-(

No surprise (0)

Anonymous Coward | about 3 months ago | (#47308255)

I've been doing engineering work outsourced from China for almost 4 years now.

The environment anybody?????? (-1, Troll)

Tailhook (98486) | about 3 months ago | (#47308285)

Wont this mean the river and atmospheres and everything in Alabama is BEING DESTROYED by CHINESE CAPITALISTS? The industry is supposed to be moving OUT OF THE US not in. We don't want your dirty contamination industry in our environments! Stop Chinese exploitation of our environments now!! Those rednecks little people were just fine in their trailers with SNAPEBTSSDI stuff. If they start working and earning money they might buy things and then they'll want to have a house and a car AND EVERYTHING to ruin the planet.

And screw Poe with his stupid laws

Re:The environment anybody?????? (0)

Anonymous Coward | about 3 months ago | (#47308505)

50,000200,000,00 ?

Shipping, Inventory/Delays & Management Costs. (2)

BoRegardless (721219) | about 3 months ago | (#47308339)

Are not trivial for moving heavy products from continent to continent.

Labor with automated systems is sometimes no longer a large expense.

2000 jobs and 2 billion dollars (5, Informative)

OzPeter (195038) | about 3 months ago | (#47308381)

Thats what is being touted for the Shandong Tranlin Paper Co. greenfield mill being built near Richmond VA, and to break ground in 2016

Chinese paper company to set up shop in Richmond suburbs [washingtonpost.com]

Sure I don't expect 2000 permanent full time jobs, but injecting $2 billion into a community ain't so shabby

Re:2000 jobs and 2 billion dollars (1)

PPalmgren (1009823) | about 3 months ago | (#47308933)

Is this for recycled paper?

The amount of wastepaper sent to China is absolutely staggering, on the order of several billion dollars a year from the US. In sheer volume and weight that's several thousand containers on a ship a week.

http://www.gltaac.org/us-china... [gltaac.org]

Re:2000 jobs and 2 billion dollars (0)

Anonymous Coward | about 3 months ago | (#47309025)

Considering those employees will not get vacation or maternity leave, it's horrible. The Republcians are so oppresive. Even the communists get tons more benefits than we do under our Republican masters. Also, in Hong Kong the rulers there charge less in income taxes than the Republicans do here. It's 17% there versus a max of 39.6% here. The Republicans are killing us under this crushing weight of no massive taxes and no time off. Also, they don't allow us to retire.

Re:2000 jobs and 2 billion dollars (1)

Frosty Piss (770223) | about 3 months ago | (#47309199)

Sure I don't expect 2000 permanent full time jobs, but injecting $2 billion into a community ain't so shabby

The problem with your argument is that "2 BILLIOB" *WILL NOT* be "injected" into the Local Economy. Much of the design, contracting, and building supplies will come from elsewhere.

Sure, there are the shit wages that will be paid to the Paper Factory Serfs, but just about everything else will come from elsewhere. And by all means, let's not discount jobs in the South that pay little more than Dairy Queen...

Race to the bottom worked... (1)

ZeroPly (881915) | about 3 months ago | (#47308403)

... and us Americans won! I'll never doubt a cheap labor conservative again.

So it starts...... (1, Interesting)

Anonymous Coward | about 3 months ago | (#47308447)

Soon Americans will be seeking jobs as au pairs in China....

Asia is the place to be. Asia is an exciting place: India, China. If you are young and have not visited these place the best advice you will receive is simply to go. Learn some Hindi or Mandarin. Drop any expectations. Just explore. Your future will be brighter for the experience.

Asia has a youthful population. The culture is alive. The Asian take / mix on American culture which produces endearing results. It is a bit of an over judgement but in America the youth are caught up in vanity, drugs. American youth are generally immature. In Asia the youth are hungry for knowledge. They have clarity in their eyes.

Re:So it starts...... (0)

Anonymous Coward | about 3 months ago | (#47308547)

You should have preceded all that with "Grandfather says"

Re:So it starts...... (0)

Anonymous Coward | about 3 months ago | (#47308605)

Eh. Give it a generation.

theyre doing it for some very specific reasons. (1, Informative)

nimbius (983462) | about 3 months ago | (#47308479)

Sourcing manufacturing jobs in Georgia is like shooting fish in a barrel. OSHA and EPA inspections are basically nonexistent and the threat of meaningful unionization is basically the same as the PRC. The most important reason chinas looking to the US for sourcing jobs is not because their citizens are earning more, its because you are earning less. according to the social security national wage index the average take home yearly pay for a worker in 1977 was $9779. adjusted, thats $58,713 in 2013 dollars.
https://www.socialsecurity.gov... [socialsecurity.gov]
http://adjustforinflation.com/ [adjustforinflation.com]
what this chinese company proposes is offering manufacturing workers $15 an hour, or around $31k a year. Things like health and dental insurance are probably not going to be provided by this company, and that would usually be OK because a state healthcare exchange would help but georgia hasnt passed any conforming legislation and does not to date have an exchange of its own, nor has it expanded medicare coverage.

Re:theyre doing it for some very specific reasons. (4, Insightful)

WrongMonkey (1027334) | about 3 months ago | (#47308911)

Check your math. I thought your inflation adjustment seemed a bit high and it turns out that the very calculator you link to agrees with me. $9779 in 1977 dollars is worth $37592.19 in 2013 dollars. Following the social security link that you provided, the national average wage index for 2012 was $44,321.67.

Re:theyre doing it for some very specific reasons. (0)

Anonymous Coward | about 3 months ago | (#47308995)

Your own calculator puts that at 37592.19 not 58173
http://www.adjustforinflation.com/9779.00/1977/2013

This could be political too (3, Interesting)

guanxi (216397) | about 3 months ago | (#47308493)

The Chinese government is very strategic about creating 'soft power' (political, cultural, economic, and diplomatic influence; as opposed to 'hard power', which is typically military force or economic sanctions). Look up Confucius Institutes and the Three Warfares, for example. China also uses its market power to get what it wants politically; look up how Hollywood studios allow Chinese censors to edit their movies (and not just for Chinese distribution).

It's not a new idea to use jobs to create influence. Government contractors locate jobs in the districts of key members of Congress in order to get votes; when Japan's auto industry was viewed as a threat, the built factories in the U.S.

In the locations where Chinese companies are placing jobs, how likely is it that the people or their representatives will support sanctions, force, or any actions detrimental to China?

(China isn't the only country to do such things, of course, but they have a lot of money, an aggressive outlook, and their government has a lot of involvement with and influence over their businesses.)

Re:This could be political too (4, Insightful)

rahvin112 (446269) | about 3 months ago | (#47308635)

The Chinese government is TERRIBLE at soft power.

When the Philippines got hit by that Typhoon and they had the opportunity to inject soft power into the Philippines and offset public opinion about their territorial claims that are in conflict with the Philippines you know what they did? The offered a couple million dollars cheap tents that were probably worth less than a million dollars.

You know what the US did? We deployed a carrier group and starting rescuing people directly, feeding them, setting up housing and providing medical care onboard the navy ships including emergency surgery for those critically injured. That relatively cheap soft power exercise for the US bought long term good will in the Philippines, in fact they actually started talking about maybe letting us open a base there again (it's bared by their constitution). We didn't really spend that much more than the Chinese claim to have spent but we got 200000x the value from it.

The Chinese don't get soft power at all.

Re:This could be political too (1)

guanxi (216397) | about 3 months ago | (#47309019)

That's just one example, and they do make their mistakes (as does everyone). Here are some successes:

  * Bloomberg and other news organizations openly refuse to publish reports critical of the Chinese government.
  * Major US universities sacrifice academic freedom in order to get funding for Confucius Institutes
  * Hollywood films that you may have watched last night are written and edited to appease Chinese censors.
  * Norway's government refused to meet the Dalai Lama, to appease China.
  * Taiwan has diplomatic relations with few countries, because they don't want to anger China.

Is this really "outsourcing"? (2)

spitzak (4019) | about 3 months ago | (#47308517)

If the manufactured items stay in the USA (or are shipped to any place where it may be cheaper than shipping from China) then this is just putting the factory where the product is being used and is not really "outsourcing". The term "outsourcing" should be limited to when jobs move to follow cheap or available labor but otherwise defies any business logic.

The article is not clear on where the factory output is going, or where the raw materials come from. There is one mention of a glass factory who's "site puts Fuyao within four hours' drive of auto plants in Ohio, Kentucky and Indiana." All the others don't seem to say whether delivery to the USA is part of the reason for the relocation.

Temporary (1)

Anonymous Coward | about 3 months ago | (#47308553)

This is all temporary. Mass production is a passing fad. By the end of the 21st century everything will be made to order at the local additive fabrication shop or on your own 3d printer. Anything that can't be made that way will be fabricated by robots. Robots which are self repairing.

Re:Temporary (1)

wiggles (30088) | about 3 months ago | (#47309001)

Your timeline for that is a bit optimistic, I think. Robot factories - sure. Simple stuff like individual parts and toys from 3d printers - ok. For things like durable goods, there are too many dissimilar, complex parts made from varying materials, each processed in a different way, to make this a reality any time soon. You'd need a universal constructor - and that's at least 150 years out. We need to master far too many high level concepts first, like quantum physics.

The quality was getting to high in china (0)

Anonymous Coward | about 3 months ago | (#47308585)

so they went to the bottom of the barrel?

Another language barrier? (4, Funny)

Overzeetop (214511) | about 3 months ago | (#47308591)

As if it wasn't hard enough to learn Chinese to talk to your suppliers directly, now you've got to learn to understand people in Alabama? That's fucked up.

It gets sillier... (0)

Anonymous Coward | about 3 months ago | (#47308637)

Well, actually this scenario isn't quite so silly, but there are some very silly scenarios induced largely by American executives with an outdated view of the world....

A couple years back I was approached with an opportunity by an Indian firm. They had landed a contract to offshore some companies software development. The problem was they had more business than their developers could chew, so they were looking to assemble a team in the most economical place they could, a particular region of the US. Of course, the ocean crossing thing adds blatant confusion to it, but even domestic outsourcing will have companies replace an employee with one or more 'temps' that cost 30% more each.

On the flip side, executives at the company I work at routinely push to offshore work to China to save money, and not to 'waste american talent' on various projects. Of course, they fail to notice that they only get the fresh out of school or still in school Chinese employees and usually only three or so months before they find more lucrative Chinese positions than whatever hellhole still continues to be a shockingly low cost solution in this day and age, all while failing to ever really deliver the solution.

They'll just complain... (2)

phillk6751 (654352) | about 3 months ago | (#47308639)

that we can't speak proper Chinese.

Dollar (1)

raxhonp (136733) | about 3 months ago | (#47308793)

So, they sell tons of goods to US that pay them in dollar. What are they supposed to be doing with all that cash? Change it to yuan, that would be bad for the currency? Buy government bonds, at such a rate, no way! Buy gas to Russia, that's not done in dollar anymore. What's left? Investing all that money in the US maybe, that's still better than leaving idle on a reserve account. Yeah, why not.

Transfer Pricing (0)

Anonymous Coward | about 3 months ago | (#47308851)

This could just be the result of the PRC's decision to allow greater variability in Yuan/Dollar variabitlity. One of the big benefits to multinational fims is called transfer pricing. Basicly, the transfer price is the internal price firms use for components and materials. By manipulating the price a firm can manage exchange rate volatility and move profits between countries for tax advantage.

States are willing to bend over backwards on taxes (1)

Joe Gillian (3683399) | about 3 months ago | (#47308961)

The likely reason the Chinese want to build factories here is that most states will bend over backwards to accommodate them. In this case, the town of Pine Hill is offering the Chinese factory a massive tax break - probably zero taxes for something like 20 years - and a place where their company has more financial freedom. I wouldn't be surprised if the town or state is also offering them tax money to stay. It's a problem all over the US: companies holding jobs hostage because someone else is offering them a better tax package.

Powerful forces? (0)

Anonymous Coward | about 3 months ago | (#47309039)

Where are the tumbling U.S. energy prices? GAO show nothing but rising energy prices.

Wouldn't that be "outsourcing to the US"? (3, Interesting)

QuietLagoon (813062) | about 3 months ago | (#47309055)

When US companies outsourced their jobs, it was said that they outsourced the jobs to China, or to India.

.
Why, all of a sudden has the terminology changed?

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