US companies could reconsider their investment plans in China because of the recent industrial unrest in the country, says Jeff Joerres, chief executive of Manpower, one of the world’s biggest recruitment companies.
In a video interview with the Financial Times, Mr Joerres said the strikes would make US companies think twice about investing in China. He said capital- intensive companies that typically invest at least $1bn in equipment and look for returns of 20-25 per cent on their investments would be particularly affected.
“Multiply that out four or five years and your labour arbitrage is really not as great as it was before, hence why Vietnam is raising their hand and saying, ‘come on over and visit me’,” he said.
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