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Manufacturing & Industry

adidas closes its factory in China; move to Myanmar


Hong Kong’s Singtao Daily reports today, “World sports clothing leader adidas confirms that it has decided to close the only factory directly under it in China and may move it to Myanmar. The company explains that the closure is its strategy to rearrange its resources all over the world. However, analysts guess that as wages gradually rise in China, adidas hopes to move to Southeast Asia where labor costs are lower.

“The factory to be closed is adidas’ wholly owned subsidiary located at Suzhou Industrial Park. As for the future destination of the factory, the company’s Chinese headquarters has not given any detailed explanation. Chinese media cites sources in the Park that adidas plans to move the factory to Myanmar. Chinese workers and staff will be dismissed on the spot, but the company will provide preferential separation compensation.”

Singtao says, “In spite of sharp rise in its sales in China, adidas plans to close its only directly controlled factory in China. This provides much food for thoughts. Though the company stresses that the closure of its factory in Suzhou has nothing to do with wage increase or stock in its warehouse, analysts guess that the major cause is the rise in wage costs in China.

“Before adidas’ withdrawal, world footgear leaders such as Clarks and K-Swiss increased their production lines in Vietnam and Indonesia one after another.

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About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

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5 thoughts on “adidas closes its factory in China; move to Myanmar

Trackbacks/Pingbacks

  1. Pingback: China’s rising pay decreases production competiveness « China Daily Mail - July 29, 2012

  2. Pingback: Myanmar’s Kachin refugees forced back by China « China Daily Mail - September 2, 2012

  3. Pingback: US can’t squeeze China out of Myanmar. « China Daily Mail - November 28, 2012

  4. Pingback: ‘Terrorist attacks’ against Myanmar being launched from China | China Daily Mail - February 22, 2015

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