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View Diary: On The Emergence Of China, Or, Zhou Knew This Was Coming (143 comments)

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  •  Michael Dell has been grousing to China about (6+ / 0-)

    the rise in wages in Eastern China, and moved his production to the more poverty stricken western part on the country.

    Americans are useful only to the extent that their tax dollars can be appropriated to bail out a system in times of crisis that otherwise has no need for us.

    "In a nation ruled by swine, all pigs are upwardly mobile." Hunter S. Thompson

    by Keith930 on Tue Nov 29, 2011 at 10:03:27 AM PST

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    •  china's sweating bullets right now... (0+ / 0-)

      ...that vietnam and thailand will steal their low-wage jobs, and that does indeed add to the sytemic tension facing the ccp/pla.

      ironically, it may actually help to ease some of the regional tensions in china if more industry were to builod out to the west, as it would ease some of the migratory pressures in the country.

      "...this election has never been about me. it's about you."--barack obama

      by fake consultant on Tue Nov 29, 2011 at 02:32:34 PM PST

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      •  Not quite (2+ / 0-)
        Recommended by:
        fhcec, nzanne

        Actually, the "Go West" policy you indirectly refer to was first rolled-out more than 10 years ago, with the first stage being infrastructure development financed by taxation on costal cities (that were first wave economic development centers) and investment incentives to firms to expand or relocate to these areas. In other words, this has been a long term policy objective not a knee-jerk reaction to pressure from development in neighboring countries as you seem to suggest. The next (present) step is development in the Silk Road region which is a conduit to Central Asia.

        You should also note Thailand's development has paralleled China's and in some industries such as electronics, they play complementary roles in supply-chains (as the recent floods in Thailand demonstrate by knock-down effect just as the Japanese earthquake earlier in the year).

        Economic development is Vietnam is actually stalling due to infrastructure limitations and it's relatively small size caps it in a similar fashion as development in places such as Singapore and Hong Kong experienced. IOW, unless it improves education and infrastructure it could stagnate (which Thailand has to some degree).

        It is accurate to say that as Chinese wages rise China is becoming less competitive in industries that chase cheap labor such as garment, shoe and toy manufacturing, etc. There has been (and will continue to be) a shake-out of weak companies in these sectors, but this is ultimately a result of meeting development policy objectives, no?

        Do you suppose Chinese (or anyone else) wants to take low wage jobs indefinitely or is this just one stage of economic development?

        What about my Daughter's future?

        by koNko on Tue Nov 29, 2011 at 05:13:14 PM PST

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        •  even as china... (0+ / 0-)

          ...clearly doesn't want to be the world's low-wage capital forever, but considering the number of "city" jobs they'll need to create it looks like they'll have to create a huge portion of the world's jobs, across all wage categories, and while that may not be what the leadership wants, it may not be something they can avoid for a few decades yet.

          "...this election has never been about me. it's about you."--barack obama

          by fake consultant on Fri Dec 02, 2011 at 08:09:37 AM PST

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