Chinese bids undercutting Polish companies?

[Marc]

Just been reading a forum called 'TheBearFacts', which apparently outlines what's going on on different sites across the country, as well as the true extent of immigration etc on our construction industry.

I've come across an article which claims that a Chinese company has won a contract to build a motorway in Poland, doing it for 60% less than bids from Polish companies.

Any thoughts/opinions? The mayor of Warsaw seems quite happy with the prospect, saying the "West should reform their economies".

Link to the article: http://www.bearfacts.co.uk/Forum/index.php?topic=1566.0 It's been pasted from the BBC News website, there's a link to that article at the bottom of the page.

One journalist claims there will be social outcry if Chinese workers are brought in to provide cheap labour. ROTFWL

 

[exbdc]

Now the Poles might know how the British feel about cheap labour. Great sense of schadenfreude.

 

[batty]

Suprised they have any labour force anyway I thought there where all out working abroad.

 

[Theorysparky]

Now the Poles might know how the British feel about cheap labour. Great sense of schadenfreude.

not sure the Poles will rollover and let it happen like we do !!!!

 

[Robojin]

Any thoughts/opinions? The mayor of Warsaw seems quite happy with the prospect, saying the "West should reform their economies".

Just shows that this guy has no understanding of what drives an economy, the average Chinese wage is likely a 10th of the equivalent Polish worker and costs are relative to wages, as the Chinese economy grows and the wealth spreads so will the costs rise, and the gap between East and West reduces

The Mayors choice in this was to pay more to local contractors to stimulate the economical growth or give tax payers the best value for money, he clearly chose the latter, assuming no large brown envelopes were involved ; \

 

[exbdc]

Just shows that this guy has no understanding of what drives an economy, the average Chinese wage is likely a 10th of the equivalent Polish worker and costs are relative to wages, as the Chinese economy grows and the wealth spreads so will the costs rise, and the gap between East and West reducesThe Mayors choice in this was to pay more to local contractors to stimulate the economical growth or give tax payers the best value for money, he clearly chose the latter, assuming no large brown envelopes were involved ; \

If that's the case then Chinese imports, upon which we are so reliant on, will got up in price & cause inflation in this country?

 

[Robojin]

If that's the case then Chinese imports, upon which we are so reliant on, will got up in price & cause inflation in this country?

Eventually yes, but due to the shear size of the available workforce, labour costs will make little difference for foreseeable future, however commodity pricing has a more immediate impact as is the case with any manufacturing nation

One of the things that offsets pricing increases is the economy of scale, new products typically have low yields and cost more, as the volumes increase prices either remain the same or reduce, and profits improve, PS3 and XBox being good examples of economies of scale in action

 

[septiclecky]

Suprised they have any labour force anyway I thought there where all out working abroad.

Remember watching a program on BBC about 12 months ago on Polish workers coming over here to work, they went into Gdansk shipyard where Solodarity started they interviewed the shipyard manager who said that when the apprentices came out of their time they left to work abroad he was asked how they kept the yard running he said we have KOREANS keeping it going:O:O:O