Small firms find China not so cheap

July 11, 2008

From trampolines to teddy bears, small German companies are finding that outsourcing some production to China may be a false economy. Despite its cheap workforce, some firms are returning to Germany over concerns about the quality of Chinese-produced goods, and high staff turnover. But the German Chambers of Industry and Commerce say this isn't a new trend, and many firms are still looking to place themselves in China, with its domestic market of 1.3 billion potential customers. Joanna Partridge reports for Reuters