Foxconn — a major assembler of Apple products like the iPhone and the iPad — is probably the quintessential Chinese manufacturer.
The company is known for its brutal conditions and plant suicides, and it’s at the vanguard of Chinese labour problems, notably inflation and shortages.
Anyway, here’s a sign that the company is not content to keep its fortunes tied to China. According to Reuters (via @bored2tears), the company is considering a big, $12 billion investment in Brazil manufacturing.
It’s not official yet, and the company is in negotiations with the Brazilian government, meaning it’s trying to extract as many inducements and perks as it can.
So how serious is wage inflation in China?
A recent report from the BLS (via FT) suggested that manufacturing wages doubled from 2002 to 2008. They’ve obviously been on the rise since then as well.
George Soros recently described Chinese wage inflation as “Somewhat out of control.”