Hello Caesar
I am curious to where that opinion is coming from. My company has a factory in the Tianjin Free Trade Zone. I got to help set it up and help train the workers. Aside from the obvious issues with language once we got them up to speed and they knew what was expected they were fine. Just like here training them properly makes all the difference in the world. If the workmanship is an issue in a factory blame the management not the worker.
Rob
Rob,
My background is in applied economics and business. To answer your question, let's separate facts from opinions. It is a fact that Chinese wages are rising. If you read the Financial Times, Wall Street Journal, Forbes, etc., these stories have been regular the last few years. (This is a great thing for the Chinese people, by the way.) You can run a google search to confirm these facts, or just click on the link.
http://blogs.ft.com/beyond-brics/2011/04/05/chart-of-the-week-chinese-wage-inflation/#axzz21xtgQcmk
Now with the rising wages, if a company is primarily interested in low labor costs, they should probably look to Vietnam, Indonesia, Cambodia, etc., instead of China.
But, of course, a business must balance low labor costs with other issues such as worker training, quality, supply chain management, etc.
The bottom line is that if you are a small, high end company, you should probably avoid off shoring. This is not because of xenophobic, bigoted, or narrow minded reasons that many people who bring up the offshoring subject hold, but for sound economic reasons. If you are Apple and can control the entire factory, you can put your own process in place, you can have your own quality control. When you are huge, offshoring is a no brainer. But if you are a small or medium sized business without that kind of power that someone like Apple has, you’re just another customer. No one really cares about you. Imagine you are selling a $100K speaker in low volume to 100-500 of your best customers. All of a sudden you find out that some part was not available and a substitute part was used. Or something was not properly welded. Or that the Chinese factory has subcontracted your work to someone else without giving the subcontractor proper training. If you are David Wilson carrying a whip or an Alon Wolf holding a nut cracker, would you rather hop in your car and drive for 15 minutes or take a 24 hour flight to take action? These guys would rather sell at a higher price than deal with a bunch of unhappy customers. And with the higher Chinese wage rates, that price differential is definitely not worth the headache or risk to your company's reputation. For the low volume high end audio industry, it is better to keep manufacturing nearby.