The Increasing Price Of Chinese Products Caused Prices Of U.s. Shoes And Apparel Increase

Chinese Products has supported the developed market, especially the decade prosperity of the United States since the early 1990s. China's low-paid rural workers went into cities to produce cheap products which are transported to the United States, driving down the U.S. inflation rate. As China does not provide cheap goods and labor resources or pay wages by the RMB which is suppressed at a lower the level of exchange rate. The prices of Chinese goods facing an increase, the global market will accept the change.

The U.S. market shows that prices of imported goods are rising and it has become the inflation pressure source. From shoes to other industries, the Chinese-made products can be marked with a higher CIF. The prices of the U.S. import in the past two years increased 8%. As China's presence, the global market over the past 30 years has been basically in a period of low cost of supply. In the March of this year, as an intermediate trader, logistics and consumer goods exports of Hong Kong Li & Fung Limited have warned that prices of China-made shoes and other products will rise.

The U.S. Labor Department data show that in the past 17 years, the U.S. consumer price of shoes had 13 years of downward. Now, cotton prices have soared. Chinese labor costs, transportation costs and the appreciation of the RMB all contributed to the raised prices of manufacturers and retailers. By the end of May this year, the U.S. shoes and apparel prices rose 1%. The U.S. clothing and footwear Association estimates that this fall the price of its member companies will rise 4% to 6%.

Some analysts pointed out that in the next few years, with the steady increase of labor costs in China, especially when China entered the "Lewis turning point", the U.S. CPI growth will be increased to 4%. "Lewis turning point" refers to the with the decreasing of surplus labors in rural areas of developing countries, so the country's rapidly rising wages has a turning point.

For decades, the hard-working Chinese workers make the labor costs down, and now Chinese workers demand better pay and working conditions. Perhaps for some time, China will continue to have cheap labor and cheaper Chinese goods. But please remember: it is no longer shoulder the responsibility of lower global cost. It is almost impossible to find the right substitute for it.

As long as Chinese shoes manufacturers moving up in the value chain of the global production, developed market Consumers will pay a higher price. Americans will feel uncomfortable, but the change is inevitable and reasonable.