A trend in Globalist /Imperalism : Chinese Manufacturers Shun Low-Wage Inland

Capitalism's  apologists pretend that profits are all created by capital itself  ,but the
Capitalists  themselves know that they make their profits from exploiting surplus
value created by labour.-More ever   cheaper labour -even greater profits!
 Hence the long  promised flow on of a share in the wealth created by labour  
  made by Chinese "Communists" to Chinese workers will never happen as
even Chinese jobs are now  flowing  out from China  to even cheaper foreign  labour .

As the report below shows; "Out-sourcing "jobs to poorer third world countries is all
the go even in China .  As inflation , especially in food prices, destroys the values of
existing wages in China, still this loss of wages value is not enough for capitalism and
so the competitive  race to the bottom in wages values continues. Competition grows
amongst the poor countries for jobs as well as   for  the  licensing out of 
environmental looting and destruction  on the cheap  by   the imperialists  in  the third
world.

Vietnam is now  a favourite for the Multinational  companies   now including Chinese
multinationals ,  as it too uses a cover of a "Communist" government, for its
capitalists.

As the U$ centred economic crisis spins out of control into recession, or even
depression   ,consumption and orders of commodities from China will fall off ,
creating the potential of a collapse in  profitability for many export orientated Chinese
companies  and industries . And of course to "Australian" companies   that depend on
making  profits by supplying raw materials  for a cut in the surplus value/profits  from 
Chinese labour,   turning those raw materials into exportable profitable products.

These Chinese companies export not just the goods themselves, but   the commodities
exported contain a passed on  discount share in the surplus value created by the
Chinese "cheap" labour . This passed on profit share in surplus value is realised as
cash by the retailers at the final sale of the commodity in the US .
This profit flow from the third world was the major big source of profit , as real
imported physical value, in recent years the mainly unproductive services based US
economy.

Often the   Chinese capitalists profit share  in   the surplus value  , was   then re-
invested for interest in  US dollar hegemony bonds. These loans  financed , or helped
allow   time payment on credit for the purchase of the Chinese commodities by the US
consumers.

The share importers of this surplus value from underpaid labour ,the called profits,
was so great that countries like the US and Australia have abandoned much of their
own manufacturing industrial base.

The expected cut in orders for goods from U$ to China in a recession will    result in
less Chinese supplied credit to purchase commodity goods flowing to the US from
China.

 This world wide globalist   "Ponzi" scheme was fuelled and financed by exploiting
Chinese and other third world labour whereby the US exported printed paper
investments (sometimes as "Aid") in return for real goods created the   U$ shopping
mall economy . 

http://en.wikipedia.org/wiki/Ponzi_scheme

The" left"( now all Keynesian, or worse military Keynesian in the U$  )has long since
abandoned Marxist economics and therefore real class analysis .
For  electioneering politics they assure  the bribed ,overpaid  U$ labour aristocracy 
'workers" mostly employed in non productive distribution and other service industries
, that they as wageworkers mostly in services  MUST  be  the terribly exploited source
of the material value as   surplus value that makes up the big US profits.

Marx himself had of course pointed out that wealth is created by exploiting wage
workers in industrial production( including in capitalist farming )for surplus
value/profit and that new wealth was realised at the sale of the product but not
actually created  in distribution.
 
The value of   services   is   exchanged, at their value. for material value /things 
created in industrial production for consumption by those making a living  providing
services. And the services providers  may even gain an extra share in the surplus value
(as average profits for capital ) created by industrial workers

"Globalism" has worked well for a number of years for the US consumer ,but now the
bills are falling due and The U$ its having great troubles paying its interest on trillions
in internal and external outstanding debts.

 It is unknown at this time if the US can really get itself out of its immediate trouble
and get its   Ponzi  like shopping mall  economy functioning again or  for a while until
the next stage of crisis inevitably develops .

The  US Federal bank is fast cutting interest rates devaluing the dollar, so as to allow
repayments of old dollar denominated debts with highly inflated lower value  dollars.
Right now, it is attempting the prop  up its bankrupt banks by exchanging the banks
dud bonds, for supposedly better, U$ treasury bonds.

So the privatised  Fad's  finance capitalists  are  seizing control of the governments
pawned future tax incomes that will have to be diverted to pay the interest on the new
bonds held by the banking  shylocks.

 The US Bond supply stocks (held by the actually private run for profit Federal Bank )
are half depleted already by the bailouts it has made to date .After the rest are loaned
out ,Monopoly game style to replenish the depleted capital of the bankrupt banks  ,the
only thing left is the printing press and mad hyperinflation of the dollar and related
currencies.

But ,the  Chinese ,Japanese and even the petrodollar puppets as source of credits are
very wary about more future investments in fast devaluing U$ dollar denominated
assets and bonds.
Hence the word-wide , not just US  ,credit freeze up.

Hyperinflation and depression looms.

 A report  follows on globalist  industrial shifts for seeking cheaper labour to
exploit.   May 12 (Bloomberg) -- by  Kevin Hamlin

Edward Kang spent 15 years building textile
maker Ever-Glory International into a symbol of China's world 
dominance in cheap clothes, shoes and toys. With $70 million in 
annual sales, the company has won customers including Levi Strauss &
Co. and Tesco Plc.
With rising labor costs and the yuan's appreciation against the
dollar threatening profits, Kang, 45, considered moving from 
Nanjing, near China's Pacific coast, to the interior to take 
advantage of a government program to entice businesses into 
lower-wage provinces. He decided instead to shift 40 percent of his 
manufacturing capacity to a new plant in northern Vietnam's port
city of Haiphong within five years. 
The provincial Chinese workers didn't have the appropriate
experience, and transportation to distant ports was too expensive, 
Kang says: ``If we cannot meet customers' price expectations, they
will say `Bye-bye, Ever-Glory.'''
Thousands of companies are arriving at similar conclusions. With
Vietnam, India and other Asian nations mounting aggressive campaigns 
for foreign investment, a third of the manufacturers in Guangdong 
province -- which produces 30 percent of China's exports -- will be 
  closed in three years, according to an April 29 report by Tao Dong,
chief Asia economist at Credit Suisse in Hong Kong. 
``The end of an era in terms of China's mighty export industry has 
just begun,'' he said. 
Foreign Shores
The factory closures and departures to foreign shores aren't likely  to dampen growth in the world's fastest expanding major economy, as 
China increases its production of higher- value goods -- computer 
chips, electronic gadgets, automobiles. 
What it does, in the world's largest Communist country, is increase
the disparity between residents in the wealthy coastal areas and the
more than 700 million people in inland provinces -- more than half 
China's population -- who may find themselves excluded from the
country's success story. 
``It is absolutely key that China push its development model 
westward,'' says Stephen Roach, chairman of Morgan Stanley's Asia
division in Hong Kong. ``The jury's out on whether they will pull it off.'' 

  China's shipments of higher-technology products surged 412 percent 
since 2002 to 347.8 billion yuan ($47.6 billion) last year, or 28.5 
percent of total exports, fueling 11.9 percent growth in gross 
domestic product. The economy is forecast to expand 10 percent this 
year and 9.5 percent in 2009, according to 21 economists surveyed by 
Bloomberg.
Cheap Labor 
  Growth is concentrated mainly in four provinces on China's 
southeastern coast: Guangdong, Jiangsu, Fujian and Zhejiang.
Clothing, shoe and toymakers there sparked China's manufacturing 
boom, with much of the initial push coming from foreign companies 
attracted by cheap labor, easy access to ports and special economic 
 incentives.
China won more than 65 percent of the $792 billion in investment 
received by 21 Asian countries during the past five years, according 
  to the Asian Development Bank. Such dominance prompted Singapore's 
founding father, Lee Kuan Yew, to say in 2002 that China is ``a 
vacuum cleaner for foreign direct investment.'' 

About 90 percent of the money has gone into the coastal southeast, 
which accounts for 60 percent of the country's total exports. That's 
helped to double average monthly pay in the Guangdong province city 
of Dongguan, China's largest manufacturing center, to 2,594 yuan in 
December 2006 from 1,284 yuan in 2001, according to New York-based 
  CEIC Data, an economic-research firm. 
Poorest Regions
So far, the rest of China hasn't shared in the prosperity. Incomes 
in western China's poorest regions are one-tenth those of the 
richest areas on the east coast. The average monthly wage for the 
city of Gansu in the northwest is 1,437 yuan. 
To help encourage investment and narrow the disparity, the
government adopted a ``Go West'' policy in 2000. It spent 1 trillion 
yuan through 2005 on 70 major infrastructure programs including a 
1,140 kilometer railway to Lhasa, Tibet's capital, according to
China's National Development and Reform Commission. In mid-2006, the 
government added 168 billion yuan for regional airports, hydropower
stations and other projects. 

  Even with the improvements, power failures, substandard roads and 
congested railways reduced production in 2004 by 9.5 percent in 
Kunming, the capital of Yunnan province in the southwest, according 
to a World Bank report. Such issues cut output during the same 
period only 2.3 percent in Shanghai, on the Pacific coast.
`Fragmented and Inefficient' 
  The transportation industry remains fragmented and ``inefficient,'' 
Beijing-based World Bank economist Zhao Min wrote in a recent 
report. Better integration of rail lines, waterways and roads 
``could considerably reduce'' costs and increase ``the 
competitiveness of the interior regions,'' she said. 
Other disadvantages: The expense of setting up a business in the 
inland southwest is nearly three times higher than in the coastal 
southeast, and obtaining credit takes more than twice as long, 
according to the World Bank in ``Doing Business in China 2008.''

The yuan's 4.45 percent rise against the dollar in the first four 
months of 2008, nearly twice the rate of last year's appreciation, 
is also eroding profits because China's exports are priced in 
dollars. The currency climbed 7 percent in 2007. 
Investment Intentions 
Foreign companies announced last year that they intend to invest 
$11.6 billion in central and western China, up 30 percent from $8.9
billion in 2003, according to Belfast-based FDI Intelligence, a 
provider of data on foreign direct investment. That's well below 
totaled $40.1 
billion in 2007, up 354 percent from 2003, and for India, which rose 
174 percent to $52.6 billion, FDII said. 
Zhejiang Hefeng Shoes Co., with one factory in Zhejiang province 
employing 1,000 people, is examining relocation options that include 
Vietnam, according to export manager Ray King. ``Customers say our 
prices are crazy,'' he says. ``They always say other suppliers in
Vietnam and Thailand are cheaper.''

Vietnam and India have become more aggressive in luring low-cost 
industries. Vietnam joined the World Trade Organization in 2007, 
giving it greater access to world markets. PricewaterhouseCoopers 
last July ranked it as the most competitive destination for
manufacturing businesses among the world's top 20 emerging markets; 
China was second. 

Low Wages 

Vietnam's laborers earn an average of 1.669 million dong ($104) a 
month, 41 percent less than China's lowest-paid workers in the 
central province of Jiangxi, according to World Bank data. 
India's wages are lower than Vietnam's, averaging 3,843 rupees ($87) 
a month, according to CEIC. India is copying China's special
economic zones, building more than 400 that will provide low-cost
land and rents, five- to 10-year tax breaks and duty-free imports. 
It has been a member of the WTO since Jan. 1, 1995, and ranked 7th 
in the PricewaterhouseCoopers report, behind Vietnam, China, Poland, 
 Chile, Malaysia and Thailand.

The labor-cost comparison became even more favorable for Vietnam and 
India in January, when a new Chinese labor law required companies to 
pay minimum wages and severance pay. The law contributed to a 22 
percent increase in labor costs during the past year, according to 
the Federation of Hong Kong Industries. 
The absence of such laws ``anchored China's status as the world's 
factory,'' Tao said in the Credit Suisse report. That advantage 
``has gone overnight.''

http://www.bloomberg.com/apps/news?pid=20601109&sid=atdmXgT8RXdg&refer=
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