"The competitive pressure on China's manufacturing sector from India is perhaps much bigger than China imagined," warns state-run Global Times, adding that China must reduce production costs for manufacturers as a result. As we have previously noted, salaries in China have grown by 10.6% since the same period, whilst wages in India have increased by only 0.2% over 2008, which has led to some Chinese smartphones, such as Huawei for example, to start manufacturing handsets in India due to cheaper labour costs. The articles suggests "the Chinese economy has to reduce its reliance on real estate and strive to create a favourable investment environment for manufacturers."
"The competitive pressure on China's manufacturing sector from India is perhaps much bigger than China imagined," warns state-run Global Times, adding that China must reduce production costs for manufacturers as a result. As we have previously noted, salaries in China have grown by 10.6% since 2008, whilst wages in India have increased by only 0.2% over the same period, which has led to some Chinese smartphones, such as Huawei for example, to start manufacturing handsets in India due to cheaper labour costs. The articles suggests "the Chinese economy has to reduce its reliance on real estate and strive to create a favourable investment environment for manufacturers."