Foreign Companies Confident in Southern China

According to an article in the China Daily (www.chinadaily.com.cn) about a survey conducted by AmCham South China, the great majority of foreign-owned companies in Southern China are not having problems with the recent VAT changes, new labor laws, or exchange rates. In fact, most claim to be considering substantial investments in Southern China rather than moves to other areas or countries.

Hmmmmmm. I'm not sure I believe it. I suspect most factories in Southern China are wishing they were further north or west right now. The trends, government incentives, and demographics sure seem to favor factories moving west and north. Some of the national trends like the VAT changes and the exchange rates may have some foreign-owned factories considering moves to other countries like Vietnam. That certainly is the conventional wisdom anyway.

Here is the link to the article: http://www.chinadaily.com.cn/china/2008-04/09/content_6600920.htm

If I had $1 to invest I sure would put it in northern or western China if I could figure out the infrastructure and skilled labor issues. It sure seems those will get solved soon.