Shanghai (AFP) – A Chinese auto glass tycoon has caused a stir by shifting part of his empire to the United States and setting up a factory in Ohio, citing high taxes and soaring labour costs at home.
The 70-year-old tycoon’s decision to open a glass factory in the eastern American state of Ohio in October — a rare case of jobs being exported from China to the US — triggered an outpouring of criticism on social media.
The phrase “Cao Dewang has escaped” became a hot topic, generating nearly 10 million views on the Twitter-like Weibo microblog and many comments urging China to “not let Cao Dewang run away”.
Cao’s Fuyao Glass Industry Group — a supplier to big names including Volkswagen and General Motors — claims to be the biggest exporter of auto glass in the world, reporting 2.6 billion yuan ($370 million) profits last year. Read the rest of this entry »
US labor participation is back to 1978 lows. 62.7% in December. pic.twitter.com/ZpGCcoJWMN
— Matt Phillips (@MatthewPhillips) January 9, 2015
“Native employment has still not returned to pre-recession levels, while immigrant employment already exceeds pre-recession levels.”
“Furthermore, even with recent job growth, the number of natives not in the labor force (neither working nor looking for work) continues to increase.”
Standard and Poor’s sees a high risk that Spain, Italy, Portugal and France will not be able to carry through necessary reforms as the unemployed become less willing to put up with austerity, S&P’s Germany head Torsten Hinrichs told a newspaper.
“The high unemployment in Spain, Italy and France is socially explosive,” Hinrichs was quoted as saying in Monday’s Neue Osnabrcker Zeitung.
“There has to be a social consensus for saving measures. High unemployment … does not help.”
Hinrichs said the people of Spain and Portugal had already proven they were willing to bear with austerity measures, but “this cannot continue forever”.
In Italy, there was the further danger that “a new government may not be strong enough for the still necessary reforms to strengthen growth,” he said.
Hinrichs said S&P still rated Germany as a triple A with stable outlook and did not see any reason for concern: “It is one of the few AAA and stable countries that we still have in Europe”.
The weak profitability of the banking sector due to the profusion of banks was the only problem in Germany, he said, although he saw positive changes in the sector in terms of equity capital and refinancing.