Growth disappears, increasing the salaries: China's economy is in a historic transition.Karen Millen
Growing disillusionment among European investors - one in five is considering even now, to turn the site back. The People's Republic loses its advantage as a low-wage country
Hamburg - The European Chamber of Commerce has published on Tuesday a surprising poll. More than one in five thinks thus about it to scale back its investment in China and become more involved in other booming countries. In Vietnam, or India, for example - or in South America. Primarily a supplier of consumer oriented according to survey.
While most companies still revel in the China boom,Karen Millen while the German Mittelstand, the country just discovered a new market for themselves, seem already to create a backlash. Many investors are frustrated, says the survey, because the country does not hold the boom up to its promise. Three main reasons are given for the new investor skepticism.
■ First, China's growth subsides. In recent years the economy grew on average by around ten percent per year for the current year, the government is targeting 7.5 percent. For the Western countries would be much, for China it is a setback. For well over a week,Karen Millen Dress even rumors of a government stimulus package. Short-term investors would benefit from such a program, while it stirs doubts about how sustainable China's growth model is still. 65 percent of respondents consider the economic insecurity as the biggest risk for investments.
■ Second, costs are rising rapidly for wages.Karen Millen Dresses According to the State Statistical Yearbook, the average income in the cities between 2000 and 2010 of 9333 rose to 36 539 yuan, have almost quadrupled So. European firms in the survey complained about difficulties in finding talented people and to keep them in operation. More than half said that the salary of the candidates are excessive.
■ Third, many foreign companies complain about the uncertain legal framework for business. More than a third of companies surveyed stated, for example, urge the government to far stricter environmental standards than the Chinese competition. Two thirds of companies said they had escaped them by disadvantages businesses. The total lost revenue went into the billions.
The China plant will be less attractive for some investors. That shows how much change the country's economy. But the real question: Is the boom threatened by it? Playful the booming country's structural advantages?
"The Wild West era is over"
According to Simon Cox is, China's economy is doing well compared to a bicycle. Both would have to keep a certain pace - or face a painful fall, writes the author of the U.S. magazine "Economist" in an analysis of the economic upheavals of the would-be superpower.
The Chinese government were eight percent economic growth long as the minimum to keep the country stable enough to create wealth and jobs for the 1.35-billion-person nation. For the current year, the government has set a growth target of only 7.5 percent at least. The focus shifts from the dizzying boom in the direction of stability.
At the same time changes the focus of economic policy. "China is facing a structural break," says Horst L?chel, a professor at the Frankfurt School of Finance and Management (FSM), the eight years in China teaching economics. "It loses its locational advantage as cheap labor." In order to grow the economy, it must be of the copy-nation to the high-tech industry. "Investors who rely on cheap production will withdraw soon," says L?chel. "The Wild West era is over, and that's a good thing."
The competition is getting tougher
To develop the economy, has pushed China's Communist Party, many reforms: to exceed the 2020 research budget to swell to 402 billion dollars and even the United States. The credit system is being modernized, with particular focus on the private sector. The capital market is gradually opened, the importance of the country's currency, the yuan strengthened internationally. From 1 June, for example, China and Japan are no longer handle their trade on the dollar, but directly in yuan and the yen.
The conversion of the Chinese economy is a mammoth project that has sparked the Communist Party towards a dispute about how much of a market economy needs to take the land. How much support the reform obstructionists in the population, was the overthrow of the last Neomaoisten Bo Xilai. The government officials had "red songs" blare, when he was a Communist Party chief of Chongqing metropolitan area - and to have been deposed, not least because of its dubious populism. The anti-capitalist movement could hardly dampen. The anger that millions of people who feel left behind in China boom channeled, is currently in a spooky cult of the dead dictator Mao Tse-tung - the government fights, in fact, that they lock dozens leftist websites can and the Internet is becoming censored sharper.
Investors are uncertain whether the government can reform the country fast enough. If the rampant boom dies down gradually as rising wages and domestic companies moult rapidly to high-tech companies, then foreign companies also see an increasingly intense competition with Chinese companies.
"Currently, China's government is from a position of absolute strength," says L?chel of the FSM. "You own the company preferred to foreign competitors to beyond what is permitted." European companies have to work hard so double and triple. It is thought that some fall by the wayside.
An improvement in the situation is hardly in sight. "If too many foreign investors pull out of the country, would the Chinese leadership on a nationalistic industrial policy loosening a little," says L?chel. But it is probably only as far as they must.
By changing the Chinese economy to foreign firms threaten therefore still rougher times than before. Already, there is a third of the firms, their profit margins are lower in China than the world average. And many indicate that their objective is no longer to conquer new market share - but maintain the existing.