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?