Businesses face China conundrum

Cheap labour costs in China are providing some of the greatest opportunities but also the most significant threats for UK manufacturers, according to a recent survey by manufacturers’ organisation, EEF.

Where Now for Manufacturing?, which polled almost 500 engineering and manufacturing companies across the country, found that investment in and outsourcing to China had almost doubled since 2002.

Thirteen per cent of respondents now locate their main overseas production in the country because of the greatly reduced labour costs.

But almost half of...

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