For the first time in more than a decade, China’s manufacturing competitiveness is wavering. Faced with increasing competition from India and emerging Southeast Asian markets, China’s rising labor costs and complex regulatory environment are triggering an exodus of manufacturing operations to more investor-friendly and cost-effective jurisdictions. Most notably, India and the 10-nation ASEAN bloc are setting the new bar for international manufacturing standards. These developing economies are on track to reap the benefits of a demographic dividend and inherit China’s comparative advantage in shipping and labor costs over the next five years and will soon assume the mantle of the world’s newest factory states.
Dezan Shira & Associates is Asia’s largest independent business advisory and tax services consultancy, specializing in advising international businesses on their corporate structuring and on-going compliance for their Asian investments. Access Article
Source: Dezan Shira & Associates – www.dezshira.com Used with permission. All materials and contents © 2014 Asia Briefing Ltd.
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