China has taken the reins as the largest metals producing nation in the world and is unlikely to relinquish that title anytime soon. However, there are aspects of the nation’s economy and trade policies that are causing uncertainties for scrap recyclers who export materials to the nation.
China’s economy was the focus of a session at the 2015 Institute of Scrap Recycling Industries Inc. (ISRI) Annual Convention [], held in April in Vancouver, Canada. Presenters at the session portrayed an economy in transition, one that remains a manufacturing powerhouse but that also is exporting some of its manufacturing work to nearby nations.
Freelance journalist Adam Minter, who formerly lived in Shanghai but now resides in Kuala Lumpur, Malaysia, said labor costs are rising in China and some manufacturing work is being shifted to the nearby ASEAN (Association of Southeast Asian Nations) region.
Minter said the ten ASEAN nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam) have a “pretty impressive GDP and potential” and that when combined they will comprise “the fifth largest GDP in the world by 2018.”
Several ASEAN nations border China, which has helped make them beneficiaries of the recent rise in Chinese labor costs, according to Minter. Rising labor costs are keeping imported copper scrap demand suppressed in China, said Minter, because a common business model relied on intensive hand sorting and numerous laborers.
With both market forces and government minimum wage requirements lifting wages in China, many of these operators are finding “cheaper labor just to the south” in Vietnam, Laos and Cambodia, said Minter.
China’s economy was the focus of a session at the 2015 Institute of Scrap Recycling Industries Inc. (ISRI) Annual Convention [], held in April in Vancouver, Canada. Presenters at the session portrayed an economy in transition, one that remains a manufacturing powerhouse but that also is exporting some of its manufacturing work to nearby nations.
Freelance journalist Adam Minter, who formerly lived in Shanghai but now resides in Kuala Lumpur, Malaysia, said labor costs are rising in China and some manufacturing work is being shifted to the nearby ASEAN (Association of Southeast Asian Nations) region.
Minter said the ten ASEAN nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam) have a “pretty impressive GDP and potential” and that when combined they will comprise “the fifth largest GDP in the world by 2018.”
Several ASEAN nations border China, which has helped make them beneficiaries of the recent rise in Chinese labor costs, according to Minter. Rising labor costs are keeping imported copper scrap demand suppressed in China, said Minter, because a common business model relied on intensive hand sorting and numerous laborers.
With both market forces and government minimum wage requirements lifting wages in China, many of these operators are finding “cheaper labor just to the south” in Vietnam, Laos and Cambodia, said Minter.
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Source : recyclingtoday.com news
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