China Labor Law Changes

I remember reading that some pretty significant labor law changes were supposed to occur in January of '08. Some doomsayers even predicted a huge increase in all manufactured products.

I haven’t seen anything about it since the New Year. Does anyone have any insight?

Hrmf…I shoulda known this was already addressed here.

there was an article in the most recent issue of Footwear Intelligence (or Footwear news, cant remember which…ill see if i can dig it up for a more specific quote later) which suggests (at least in the footwear industry) xfty prices could increase anywhere from $1-4 as a result. i havent been in touch on costing with any ftys since the change, so cant verify though…


My sourcing has indicated that there is a projected avg. 15% increase in labor and other costs that have been factored into FOBs for this year of production. Our customers (ie: retailers and distributors) have also anticipated this increase already and have either adjusted retail margins or made us adjust our wholesale margins accordingly.

Add to the fact that the same retailers and wholesalers have projected a 15 to 20% decrease in sales for next fall so we are already cutting skus, lines and production.

China’s labor law = bad timing for everyone. Once, the Olympics over the bubble will burst.

I’m thankful for your attention on my country(China). And I’m sitting here Guangzhou city China.
Your Topic attracts my eye…
I think the labor law just one element that influence the price of products. the other is the RMB Currency upping.

Frankly, I want to say…The new law seems unmeanful…for me, as a university graduated designer=2000~2500RMB pre month, it’s about 280~350$/m

What do you think about this salary? and It’s not a lowest payment.(blue-collar workers will be paid less than 2000RMB/m=280$/m)

So, I don’t know how do you think about the new law to you…but as someone mentioned 15% up, it’s not a big deal to you, right?

BTW, I don’t want to argue sth. And I don’t know whether you can read what I said 'cause I’m not a English speaker and I’m trying to do it well. So, If there are sth that you feel unpleasure, I’m sure you I’m not willing to do it…and if someone want to know me or know China more, I’m glad to be your guide! of course cost nothing…my

Most of whats in the stores now was already ordered and delivered last year… So it will take a while for these changes to fluctuate down through the system to the end consumer. But trust me - it WILL happen… :wink:

Here is an example of the price of an item jumping 50% already since last year… (though this one is due to materials costs).