The Cheap Chinese Goods Era Might Be Coming To An End

The demand for high wages from the factory workers and the working conditions are pointing towards an end to cheap Chinese products.

For decades the Chinese factories have been ruling the markets due to the production of cheap products that they product and sell through out the world. But, according to some business analysts that is going to change. One major reason to that is the increasing demand for higher wages among the Chinese workers that will cut the profit margin and will increase the product costs.

Once these low wages and low-tech factories were welcomed in China, that is not the case now as the workers are demanding for more wages and better conditions to work in. This is an alarming sign for many foreign companies that rely on Chinese labor to produce low cost products, starting from alarm clocks to high-tech gadgets.

"China is going to go through a very dramatic period. The big companies are starting to exit. We all see the writing on the wall," said Rick Goodwin, a China trade veteran of 22 years, whose company links foreign buyers with Chinese suppliers.

"I have 15 major clients. My job is to give the best advice I can give. I tell it like it is. I tell them, put your helmet on, it's going to get ugly," said Goodwin, who says dissatisfied workers and hard-to-predict exchange rates are his top worries.

Govt. of China is looking to looking to push foreign investment so that the wealth of China be increased. But the increase in the cost of Chinese currency against dollar has increased the uncertainty for the companies who are struggling to keep the profits in the greens.