China's competitiveness hit by energy and labour costs
The competitiveness of China's manufacturing industries has suffered serious erosion over the past year, according to one of the world's largest trade sourcing companies.
Hong Kong-based Li & Fung group, which manages a $7.1bn a year trading business, said price rises crept back into the Sino-US and EU supply chains last year, after at least six years of often "severe deflation".
William Fung, Li & Fung managing director, reported an average 2-3 per cent increase in the once unbeatable China price its US and European clients were willing to pay. He pointed to a "double-digit" rise in Chinese labour costs, the revaluation of the renminbi and higher oil and energy costs for the shift.
"China's costs are all going up," Mr Fung said. "It is no longer the most cost-effective country in the region ?￠?�?| Anything [sourced] from China has a higher inflation component than from other places around the world."
Beneficiaries of China's rising prices have included textile and garment manufacturers in India, Bangladesh and Cambodia, which were expected to lose orders to China after the quota regime governing textile production expired in January 2005.
They were saved, however, by a combination of anti-surge "safeguards" imposed by the US and EU on selected Chinese textile exports in the second half of last year, as well as rising cost pressures in China. "[The safeguards] stopped China in its tracks in terms of textiles," Mr Fung said.
"In Bangladesh factories are so overbooked - it's like China used to be," added Bruce Rockowitz, the president of Li & Fung's trading arm, who oversees sourcing operations on four continents.
The inflationary pressure extends to all product categories sourced by Li & Fung, ranging from fashion accessories and furnishings to sporting and travel goods.
Li & Fung, which used to buy 90 per cent of its non-apparel products from China, has seen 25 per cent of this "hardgoods" business migrate to cheaper locations in south and southeast Asia. It sells about 70 per cent of its sourced goods in the US, and another 20 per cent in Europe.
At its results briefing yesterday, Li & Fung reported an 18 per cent increase in group turnover to HK$55.6bn ($7.1bn), with net profit up 20 per cent to HK$1.79bn.
The company also recorded a rare up-tick in its "total margin", which represents the difference between what it pays China-based factories and what it charges overseas retailers. The margin rose to 10.7 per cent from 9.6 per cent.
“中国制造业竞争力严重受损”
据香港利丰集团(Li & Fung group)称，过去一年，中国制造业的竞争力受到了严重侵蚀。利丰集团是全球最大的贸易采购公司之一。
利丰集团称，在至少6年不时出现“严重的通货紧缩”之后，去年中美及中欧供应链环节重新出现了价格上涨的现象。利丰集团每年经营着71亿美元的贸易业务。
利丰集团董事总经理冯国纶(William Fung)称，中国产品价格平均上涨了2%到3%，原因是劳动成本以“两位数”增长、人民币升值以及石油及能源成本上升。美国和欧洲客户愿意购买中国产品，是因为其一度无与伦比的价格优势。
“中国所有的成本都在上升，”冯国纶称，“该国不再是亚洲地区成本最低的国家……与世界其它地方相比，来自中国的产品价格涨幅更高。”
印度、孟加拉和柬埔寨的纺织及服装行业，成为中国价格不断上涨的受益者。人们曾预计，在2005年1月纺织品配额取消以后，这些国家的纺织、服装行业的订单将被中国夺走。
然而，由于去年下半年美国和欧洲对某些选定的中国纺织品出口实施一系列避免大幅增长的“保护性措施”，加之中国成本压力日益上升，这些国家得以幸免。冯国纶表示：“(这些保护性措施)阻碍了中国纺织业的发展。”
利丰集团旗下贸易子公司总裁布鲁斯?罗克威兹(Bruce Rockowitz)称：“孟加拉国工厂接到的订单大大超过生产能力――正如中国过去那样。”他负责四大洲的采购业务。
通胀压力扩展至利丰集团采购的所有产品目录，包括从时尚服饰和家居用品，到运动用品和旅游产品。
过去，利丰集团90%的耐用消费品（即非服装产品）均购自中国，但它已将25%的耐用消费品业务转移至南亚及东南亚成本更低的地区。
