preview

Outsource in the US, PRC and Other Involved Countries

Best Essays
Outsourcing is not a strange word for China, the World Factory. China is earning this name by the 30-year experience of OEM, ODM and assembly manufacturing. However, the economic crisis has become a watershed for both the US and the PRC on topic of international labor cooperation. According to the statistics, the foreign capital is retreating from China, and nobody knows where it went. Chinese government started to eliminate labor-intensive industries and expand domestic demand by investing funds. For example, a 4 trillion RMB stimulation plan is announced in 2008 (Xinhua.net). The merge of labor demand is majorly because of the rising wage level in China and the need of new vocation in the US. In the foreseeable future, China is transforming itself to be a domestic-demand stimulated country, and new manufacturing labor demands turns to other countries and US mainland.
As a result of observing the economic data in China and the US, the business relationship of China and the US has really changed in some ways. One of the most significant cases is that the increase pace of foreign capital in China is slowing down recently. According to the database of the National Bureau of Statistics, the total foreign capital in China increased from 867.164 billion RMB in 2004 to 1,975.588 billion RMB in 2011, that is about 2.5 times multiplied. However, after 2008, the increase rate in total foreign capital dropped from averagely 18.9% to 5~6%. Referring to the inflation rate, it is actually not an increase but a decrease instead. It revealed that investors start to revise the investment in China, or at least new investors are losing their interest to Chinese labor market.
Secondly, the originally unstable import/export economy in China ...

... middle of paper ...

...f the lack of detailed information, the future is always hard to predict. So all in all, the future of the PRC, the USA and other countries involved in globalization process remains to be observed.

Works Cited

Economy at a Glance. Bureau of Labor Statistics. 2014. Web.
McMahon, Tamsin. “Shore Beats Offshore” Maclean's, 00249262, Jan, 6. 2013, Vol. 126, Issue 51/52. Academical Search Complete. Web.
Nike Manufacture Map. Nike Inc. 2013. Web.
Vietnam accounts for 42% of total NIKE Brand footwear production in fiscal 2013”. AmCham. 2013. Web.
“2008年11月9日中央领导人活动”. Xinhua.net. Nov, 10. 2008. Web.
“2012年河北省工业行业淘汰落后产能目标任务完成情况公告”. 河北省人民政府. Apr. 25, 2013. Web.
国家数据. 中华人民共和国国家统计局. Web.
“国务院关于印发工业转型升级规划(2011—2015年)的通知”. The Central People’s government of the People’s Republic of China. 2011. Web.
“温州市人民政府关于加强淘汰落后产能工作的意见”. Wenzhou People’s Government. Mar, 11. 2011. Web.
Get Access