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No. Because China is working on that too. This is what their Made in China 2025 initiative is all about: https://en.wikipedia.org/wiki/Made_in_China_2025 https:
by hangonhn 6y ago
No. Because China is working on that too. This is what their Made in China 2025 initiative is all about: https://en.wikipedia.org/wiki/Made_in_China_2025 https://en.wikipedia.org/wiki/Made_in_China_2025
"The plan aims to upgrade the manufacturing capabilities of Chinese industries, growing from labor-intensive workshops into a more technology-intensive powerhouse.[6] The goals of Made in China 2025 include increasing the Chinese-domestic content of core materials to 40 percent by 2020 and 70 percent by 2025."
This is a major source of all the economic anxieties the US government and allies are feeling.
China isn't just a source of cheap labor anymore. Cheap labor was what it had to offer because it was so under developed but they aren't blind to history. They know they have to move up the value chain and have been gradually but steadily moving up.
- Tycho 6y agoBut cheap labour is a sustainable advantage that the west can never rival. Everything else, we can compete on, in theory.
- hangonhn 6y agoIt's not an advantage that China can maintain though, hence the movement upwards. China, and other countries like that, was cheap because they were underdeveloped and the goals/wants of their population were minimal. But now some of the highest home prices in the world are in Shanghai. Many of China's coastal cities have gotten wealthy and China's remaining source of cheap labor are in the interior cities, hence the development of major railways into the interior, etc. But everyone knows how that story is going to go. The interior cities will also become wealthy and then the last remaining source of cheap manual labor will dry up. Making your people wealthier and moving up the value chain are good goals but once you get there you need to switch. which is what China is preparing for.