China Hurt By Mexican Labor Costs

It is no secret that as China’s middle class–created by its huge manufacturing machine–has agitated for higher wages. And, in may cases, this agitation has worked. This has had the effect of raising its overall export costs.

These high prices have press manufacturers to look at the large, and relatively skilled worker market in Mexico

According to the WSJ

But for many companies, a better step is to beef up production in Mexico. Despite security concerns, wages are substantially lower than in the U.S. A look at recent trade statistics suggests companies are already on the move. The number of loaded shipping containers entering the ports of Los Angeles and Long Beach, Calif.—the major entry points for Asian imports—edged down 0.2% last year. But trains and trucks carried 8.7% more freight, by weight, from Mexico to the U.S. in the first 11 months of last year than they did a year earlier.