Saturday, 9 April 2016

The End of the Chinese Miracle - An FT Features

"Made In China"
We can't be blamed if we think that almost everything manufactured is Made in China, as the country used to be known as providing the lowest labour cost. From clothing items, to electrical goods to utensils - it is a norm to see the label "Made in China". Right?

But things are changing.

China is no longer considered low-cost manufacturing countries. While it still being one of five countries with the cheapest manufacturing cost; China is no longer regarded as the cheapest option to manufacture goods. 

Deemed becoming less competitive, factories across China are being squeezed out by shortage of workers, rising wages and falling prices. More and more companies are heading elsewhere and relocating their factories to other countries such as the Southeast Asia.

The End of the Chinese Miracle video by Financial Times below looks at China’s economy and labour force and investigates how one of the world’s most powerful and populous country’s has reached a critical new chapter in its history.

The clip shows the plight of not only the migrant Chinese workers but also migrant workers from poorer countries like Vietnam working in China. Furthermore, not only the workers are affected by the falling demand, countries that depended heavily on China's demand on raw material are and will be deeply affected.

The scary thing is, if the slowdown continues - it can force the whole world into an economic crisis.

2 comments:

  1. This report gave me a clearer picture of what is happening to their country with sudden changes. They seem to conquer all the foreign countries now for vacations with lots of cash to spend while back home is another story.

    ReplyDelete

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