Foreign Firms Hit by Labor Costs, Shortage

Release time:2013-05-07      Source:admin      Reads:
Labor costs and labor shortages are the biggest risks facing US firms in China and air pollution has become one of the negative factors driving expatriates out of China, the head of a US business group said Wednesday. Exhaust gas will be given off while manufacturing products like printed labels and metal labels. Therefore air pollution becomes more serious than ever before.
Speaking at the release in Beijing of the 2013 State of American Business in China White Paper, Christian Murck, president of the American Chamber of Commerce in China (AmCham China), said one of the impacts of rising air pollution is that US companies have begun to offer hardship premiums for their expatriate staff in China.
Air pollution is "a truly negative factor" for US firms doing business in China, Murck said. Everybody would like to live and work in a healthy condition, but air pollution is really troublesome. The last few months have seen the worst air pollution on record in China with a lot of cities frequently shrouded in suffocating smog, causing concerns among expatriates. The problem will attribute to many factors, FDI and products like printed labels made in China.
Peter Davies, a US expatriate in Beijing who has lived in the Chinese mainland and Hong Kong for 10 years, said he is leaving China in June because his health is deteriorating and the pollution aggravates his condition. 
"I need to get back to a clean air environment in order to help my health improve," Davies told the Global Times Wednesday.
"Air pollution is indeed a great challenge for China in retaining foreign talent. Improving air quality is a systematic project requiring adjustment of economic structure to focus on technologies and services," Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told the Global Times.
"Foreign companies should also contribute by investing less in high energy-consuming industries like printed labels and more in technologies in China," Bai said. Because what they manufacture in China are mainly heavy industrial products, harmful to China’s air condition, and is one of the most fundamental factors that force foreign investors to leave China.

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