Powerful macroeconomic and demographic trends are threatening China’s manufacturing dominance, with potentially dangerous implications for the nation’s continuing economic rise. International demand appears to be weakening and many foreign firms are shifting their overseas business to areas with cheaper labour. The young, working age population is beginning to decline in numbers. GIS guest expert Brendan O’Reilly examines the developments.
Rising wages threaten China’s vital manufacturing sector
MANUFACTURING is crucial to the Chinese economy - which overtook the US in 2010 to become world number one in the sector - and now employs about 15 per cent of the workforce.