About 30 percent of companies in the Pearl River delta are planning to cut investment in the next three years, the Hong Kong Economic Journal reported Friday, citing an industry survey.
A number of manufacturers blame labor shortage and rising wages for their decision, the survey by the Chinese Manufacturers Association of Hong Kong found.
Some are planning to move to Qingyuan in Guangdong province, a remote mountain region, to save costs.
Association vice president Edward Tsui, who operates a screw factory in Shenzhen and Dongguan, said his staff costs have risen 10 percent on average each year, outstripping revenue growth.
Frequent tax and wage increases exacerbated by labor shortage have worsened the business environment, he said.
A toy manufacturer in Guangzhou and Dongguang said labor shortage has caused his company’s revenue to fall 50 percent since 2008.
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