For the better part of 20 years, China has been the world's factory

For the better part of 20 years, China has been the world's factory. Its low labor costs have helped tamp down inflation in developed nations by allowing them to import cheap, Chinese-made goods. The torrent of foreign direct investment that flowed into mainland China - some 900 billion US dollars since 1990 - helped finance factories along the southeastern coast slaking the global thirst for inexpensive goods. It also underpinned phenomenal economic growth. The country's GDP grew from 357 billion US dollars in 1990 to 9.3 trillion US dollars last year, a nearly thirty-fold increase in a single generation. But that growth also spurred deep social changes. Millions migrated from inland, rural provinces to coastal cities in search of manufacturing jobs, and some 300 million Chinese vaulted into the middle class. The net result: China's days as the world's low-cost factory are numbered. They're going to be buyers now. (VIEW LINK)


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.