| Almost 18 years ago I saw Korea starting to export good to the world. I remember I bought then a small TV set made in Korea. The quality was very good. Then came ships, cars, flat screen TV set, etc. all made in Korea. I thought then "If Korea, a small country, can export so many products what will happen when China starts to do the same". And now it is happening!! The problem is that China is too big. The world has now a HUGE production overcapacity. The strains are been felt now all over the world. The results are: fierce competition, copycat of every thinkable product, huge pressure to low price and profits for foreign companies, workers losing its jobs in Europe and USA, etc. The recent problem with tainted products may be just an indication that the societies in other countries are becoming highly sensitive to the competition coming from China. Not good for China exports, of which most of is economic growth depends. One of the problems for the future of China is how to fit this excess of production in the world economy. New opportunities could be open through this new production capacity, but also many dangers.... and mainly for China development. |
Why Things in China is Cheap?