Over 80% Of Owners See Rising Labor Costs
By Cathy Ding |
October 14, 2011, Friday
|
Print Edition
Print Edition
CHINA may lose its "world factory" status due to rising labor costs according to 83.7 percent of private company owners in a latest survey.
A further 40.7 percent of the respondents were pessimistic over the outlook for the domestic market as they cited high inflation, according to a report released by the China Oriental Culture Broadcast Institute yesterday.
Small private business owners have been facing great difficulties in getting loans from banks and this obstacle has pushed many of them to resort to informal sources of loans at high interest rates.
Nearly 43 percent of the respondents have resorted to "underground borrowing" while 40 percent called for these informal lending firms to be legalized.
Many private company bosses in Wenzhou in Zhejiang Province fled after failing to repay the loans.
Qiu Zhiming, president of Beifa Group Co, a stationary manufacturer based in Ningbo in the province, warned the level of private lending woes may be nationwide and the Wenzhou problem might be the tip of the iceberg.
Qiu added that labor costs have been rising at an average of 20 percent in Ningbo for the last five years.
A further 40.7 percent of the respondents were pessimistic over the outlook for the domestic market as they cited high inflation, according to a report released by the China Oriental Culture Broadcast Institute yesterday.
Small private business owners have been facing great difficulties in getting loans from banks and this obstacle has pushed many of them to resort to informal sources of loans at high interest rates.
Nearly 43 percent of the respondents have resorted to "underground borrowing" while 40 percent called for these informal lending firms to be legalized.
Many private company bosses in Wenzhou in Zhejiang Province fled after failing to repay the loans.
Qiu Zhiming, president of Beifa Group Co, a stationary manufacturer based in Ningbo in the province, warned the level of private lending woes may be nationwide and the Wenzhou problem might be the tip of the iceberg.
Qiu added that labor costs have been rising at an average of 20 percent in Ningbo for the last five years.
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