| Jianshuo, It appears to me China's low price exports to the west is slowing down a bit lately. I can think of a few reasons as to why: 1) The labor: you are right China has a large supply of migrant workers. Now the "post 80s" generation is entering the workforce. Compared to their parents or big brothers/sisisters generation, their work ethic is not as good. This is confirmed by the stories "the plants can not find quality workers in Pearl river delta" from time to time. 2) Environment: Chinese goverment realized current model of economy development, I mean "exchange environment for cheap exports" is not sustainable, and not good development. 3) Politics: cheap exports and especially the recent "tainted toy products" are causing back lashes in the west. One example is the Chinese shoes were burned in Spain couple years ago, because the Wenzhou people drove the local people out of business. There are lots of touch talk about "China cheaper exports" in the US presidential elections these days, too. China is trying to build a harmonious society internally. In my mind, China wants and needs to build a harmonious relations with the world, while continuing the economy development. |
Why Things in China is Cheap?