A manager in Shanghai who earns US$30,000 a year - the average managerial salary according to government figures - ends up costing US$60,000 a year. A factory worker earning a base salary of US$3,000 ends up costing US$6,000.
"Shanghai is definitely becoming uncompetitive for manufacturing, especially for export, but also for the domestic market," says Jack Perkowski, CEO of Asimco Technologies. The company makes camshafts, fuel pumps, cylinder blocks, brake systems and rubber noise and vibration components for the China market and for export.