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  • A worker installs a Nissan car billboard at the Beijing International Automotive Exhibition November 18, 2006. (Claro Cortes IV/Reuters)

    Nissan says to start exporting cars from China JVTOKYO (Reuters) – Nissan Motor (7201.T) will begin exporting passenger cars over the next few months from China, as a growing number of global industry giants tap their output in the world’s second-largest auto market to supply export markets.

  • Apparantly, at least in auto manufacturing, China is still giving companies cost advantages compared to production in other countries.  Newsworthy because of the strengthening Chinese currency compared to two years ago. I wonder if the lower costs might not be because of currency valuations, but because of differences in regulations, and fewer restrictions on investment and production methods. I would also expect that companies are gradually finding it easier to hire employees capable of working in a relatively high tech environment.

    Will things reverse course? Eventually they will, but I suspect not for some time. At least here in my hometown of Suzhou, we are still seeing massive investment, even as rumors circulate that fewer foreign companies are making a home here. Has the domestic economy grown enough to drive economic growth?


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