This is a sponsored post. I was recently contacted by the Financial Times concerning “The End of the Chinese Miracle”, and have been invited to share the following video and give some of my commentary. Definitely a must-watch for all China observers:
China is certainly changing. And according to the Financial Times, the economic growth will not last forever. Specifically, due to the cheap labor of migrants winding down in recent years. I am not an economics expert myself, but the doubling of wages and repercussions globally do seem troubling. An interesting analysis.
The interview with a migrant worker who has decided to return to his hometown is key. Hundreds of millions may follow suit (the numbers are staggering), and the dependence of the world on ‘made in China’ products is going to have to change. There is also the phenomenon of of Vietnamese coming to work illegally in China explored. While India may be the next big thing, in the meantime the world is going to have to get used to new status quos.
Not mentioned in the video however, is the widely-believed analysis that the crackdown of Xi Jinping’s government is all about keeping China stable — and under the party’s control — as the economic downturn inevitably moves along… Not to mention the explosion of housing prices in major Chinese cites, which I have witnessed firsthand.
I don’t usually get into politics and economics on this blog, it’s mostly been about just my own experiences, yet I always welcome discussions with those smarter than myself. I do try to be optimistic, and the truth is no one can completely predict the future accurately.
But there is certainly much to be anxious about.
Would you like to add to the discussion?
Indeed it is interesting to see how things change in the economic world. China will have to adapt to the situation over time and also concentrate more on high quality products/ finished products not juar parts. Germany for example is known mostly for its cars, high quality machines and equipment plus other pricy things. This used to be different ad well some 50-60 years ago when Germany had high export of machinery parts etc.
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I got offered to write a post about this too. It is an interesting analysis, and it will be interesting to watch if China can sustain their economy at their current rate. In Australia, anything ‘Made in Australia’ is still pretty much expensive. The affordable items are still those ‘Made in China’.
I read an article the other day how costs for mass production is now cheaper in Bangladesh/India etc so yes the question is ‘will China be able to sustain their economy?” and ‘will the world move to different countries for their mass production of cheap labour?”…