Foxconn's "Serial Hop": Lewis Inflection Point arrives

Foxconn's "Serial Hop": Lewis's turning point the life of Foxconn's employees has spawned more thinking about the future of China's economic transformation from seemingly accidental employees committing suicide to a sensation of "12 jumps" across the country, Foxconn has completed a difficult transition at the expense of more than 10 young lives.　　The lives of Foxconn employees have spawned more thinking about the future of China's economic transformation.　　After the lesson of blood, the first to be broken is the long low pay system. Since June, Foxconn has raised the minimum basic wage level with the Shenzhen municipal government, and the basic wages of ordinary production workers have risen from 900 to 1200 yuan.　　One weeks later, the basic salaries of front-line staff were raised to 2000 yuan, an unprecedented increase. Hong Sheng technology for the Foxconn Technology Group, one of the 11 major business groups, the main computer and mobile phone required printed circuit board.　　October, coincides with the Mid-Autumn Festival, National Day Double Festival, overtime at the usual three times times calculation, many ordinary workers the highest salary of 6000 yuan.　　Honda was forced to raise the minimum monthly wage for its employees from 1544 Yuan to 1910 yuan, up 24% per cent, almost in the same period as Honda's staff suffered from a shutdown. Foxconn has sparked a wave of pay rises across the manufacturing sector. Since 2010, a total of 27 provinces and cities in the country have or are planning to raise the minimum wage, especially in coastal factories.　　Public information shows that Hubei, Ningxia, Fujian, Guangdong, Shandong and other provinces to increase by more than 20%, Shanghai, Zhejiang and Guangdong, the minimum wage, has exceeded the thousand yuan. Under the current low pay system, the labor force inevitably from the surplus to the shortage, many researchers say, China's low-cost Labor era has ended.　　"Lewis inflection point" arrived. The so-called "Lewis inflection point" refers to the turn of a country's labor force from surplus to shortage. This theory holds that the process of industrialization, with the gradual transfer of surplus rural labor to Non-agricultural industries, will gradually decrease and eventually disappear.　　After that, wages must be increased before they can continue to absorb surplus labour. Cheap labor has always been one of China's biggest attractions in attracting foreign capital, especially for industries with export processing or OEM (foundry) business.　　Many small and medium-sized enterprises in China have been engaged in "processing, OEM Export" business, relying on domestic and foreign labor market spreads to survive. Foxconn's "12-hop" is not only a reflection of the survival of a company's employees, but also a microcosm of many cheap factories. No matter how much benefits the pay boom can bring to employees, it is certain that China's labour force, which has been considered "cheap" by the world, will no longer be cheap.　　From a deeper level, this round of pay rise is not accidental, but China's labor supply and economic development to a certain stage of the inevitable result.　　The old pay system is broken, but also for those who do not think of innovative enterprises have a difficult problem. A group of companies headed by Foxconn are starting to accelerate relocation or northward. Analysts believe that the Pearl River Delta, the Yangtze River Delta Industrial Restructuring and upgrading has been forced to mentionSpeed, it is undoubtedly a historic turning point for China's manufacturing industry. From the perspective of international experience, many developed countries, such as the United States, Japan, have experienced the transition from manufacturing to services.　　In this process, the advantage of the manufacturing industry is replaced by other countries with cheaper labor, but the industrial upgrading and the rationalization of economic structure become their common path choice. "This is a watershed and the tide of pay is destined to change the country's economy," The US Wall Street Journal reported. "This is the end of an era and the beginning of another new era for the Chinese economy."