@
jhungary
They are trying to keep those pesky wages down, from what i see with 2 primary measures. One is relocation of industries to central China, the other is importing workers from neighbouring countries (N. Korea, Vietnam) or less developed provinces. Though in the long run it will eventually mean rise of their wages as well and less competivity.
Actually both would serve as temporary solution because
You need to know why those central/western places is not developed in the first place, becuase its undesirable. Kind of like the shale oil we have in reserve. It's way cheaper and way easier to import oil from oversea than refining the shale oil we have. But to a point when importing oil played a more important factor, and it's more expensive to import than Refining shale oil, then it would be a time to get something done with our shale.
Anyway, either they are too far for support hubs, which mean more money to transport them to transport hub or the worker have poor education background or skill, which translate to money to train them, all those will make the cost of the product up. Again, it will be a solution as long as they are still cheaper to make them in big city, but also will not be a solution upo to a point it will be more expensive than importing same goods from oversea.
And you cannot import foreign worker indefinitely. At some time your labor market is going to stuff up. So it also only serve as a temperate solution.
Yup he thinks , he is scholar in economy , humanities , societies , diplomacy and history , its best not to reply
for him western people are foolish , china is great , not that i want bash any country here , but facts are facts , the forum is to impart what knowledge you got and to gain new ones but this is lost on him !!
He can think all he wants, it doe snot stop people with slight education laugh at what he wrote.
If he think he is right, he can post them, it's his face to lose, not mine, so i don't really care lol.
you just suck in economics and I dont need your lecture!
If a company decides to invest overseas and makes money out of it. where does its profit go? it is not narrowing into import and export but it is on the scope of competitiveness which will affect the companies welfare and in turn channel its company results in part into the Country's coffer! Now do you understand!
Further more China is importing according to its own demand as widely as possible. It is conforming to WTO rules or otherwise they are arguing through the tribunals!
lol, dude, it's all come down to Import and Export,
THIS IS THE BASIC IDELOLGY OF WORKING ECONOMY..........
Economy 101, a country market work on Importing and Exporting goods, currency and services. Even the stuff that you say, foreign investment, is a kind of import (Import of Capital) do you realise how stupid on what you just say.........
First of all, China are free to invest in
ANY country in the world, they can choose to invest in America or they can choose to invest in North Korea for all i care. The import issue is they need to unload some of the capital to other country and develope other people economy, just like the foreign nation did to China now. Do you even know how this is important? I think not.
The problem with China is, you see Chinese product is cheap now, but do you expect them to stay cheap forever? Do you expect there are no inflation ever going to happen in China? It's ok in a short run but in a long run, only selective people in China can afford the local product and there aren't any alternative product to choose from. Then your economy will be
DOOM. It's simple as that.
With foreign investment, you actually achieve a win win situation where you get to get financial return and you got to help your allied, If you don't want the American Government to have your Chinese money, you can go invest in IRan, cambodia or even North Korea for all i care....
China, if unchanged, are going to follow the route of Japan as they walk themselve as an export driven economy, the only differnet between Chinese and Japanese import is, Japanese famous with theur quality while China are famous to their cost. The problem is, time is different, stop are the same, if Chinese do not open their Import market, well, then you can wait for the rice hike that coming, heck, it's already came, if you have not noticed.
I wonder how importing workers from neighboring countries going to work ;
China doesn't have full employment, official rate is 4.1 % but all other indication its more than that, as per wsj
The unemployment rate for China's army of 160 million migrant workers has risen sharply to 6% in June 2012, up from 3.4% in August 2011 according to the survey, suggesting 10 million unemployed as a result of the sharp slowdown in exports and real-estate construction.
It's a short term solution, until the labor market saturated. Then they will either need to increase the salary or stop importing all together, they would also need to compete with other country, so this i guess, is not a good way.
This show the economy is slowing pretty bad , last things they should do is import workers , you know what happens when the Chinese get angry !!!
Well you missed the lesser developed provinces part. I've read articles about how there is not enough food there so im guessing they are very happy when they reach the coast where at least they can work and have enough food.
Badside is, they are being kept down with a system called hukou, which prevents setting up permanent residency in the province you work, and with that denies education, social security etc. It is basically a system which strides to keep producing cheap workers for the longest period of time.
To be fair, CCP announced changes to the system, but idk how big they can be before seriously hampering with macro economic indicators.
The correct term is 外省民工 (Worker from another provience) the point is, they are suppose to bring a attractive salary into big city so they can lower the overall salary hike, but it did more damage than good in term of their own economy. The education different and standard of skill make a big arse out of so many business. And in some case, those company need to hike their wages to find better people so they don't ended up hiring the Migrant worker.
