Anybody noticed how much of our consumer stuff is made in China these days? And how little is actually manufactured in Europe - cannot speak for the USA. Many small companies were squeezed out of business over the past years by producers in countries like China, where workers were paid very low wages.
This does have an implication. The day may come that China holds the monopoly of manufacture, and could use that as a leverage tool. You see the same happening in countries surrounding Russia, that are depending on its gas exports. The balance has shifted to China in fair trading, and by fair economics. We are beginning to see the first stages of this leverage.
Because of the increased income out of exports, standards of living are beginning to rise in China. Workers demand higher wages, seeing on their new TV's what we are enjoying here in the West - so prices of consumer goods will rise too, in our shops. Bearing in mind that there is no real competition left - maybe I'm wrong - this spiral could have serious consequences a number of years down the line. China is a giant.
It is beginning to wake up.
Technorati Tags: china, economics, west
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Yes, but apparently the one to watch is India... I don't know
ReplyDeleteI think we should try to buy local food; I mean I saw a program showing carotts from miles away and other carots from the local area. Why do we buy vegetables that we already have and grow in the country to other countries? I know we have contracts with them but if there were somethings I would change, it would be with the basics like food we already produce. Other stuff we don't have, we can't invent them, like exotic fruits; and other manufactured little things coming from China, it is basically everybody's choice to decide whether or not it is necessary in their life. But I see what you mean. Labour is cheaper overthere, I don't think it will change tremendously, their wages are slave wages, no reason to change as yet I think
Valerie
When I was over there this month they were all telling us that their economy was getting so strong now that within five years they would have better living standards than the US and UK! Their traffic jams are most certainly bigger and longer than ours! Jeannette xx http://journals.aol.co.uk/jlocorriere05/Welcometomytravels/
ReplyDeleteOops sorry Guido, I thought I would paste my journal address but still had someone else's hournal in my copy thing.
ReplyDeleteValerie
Yep, we have a lot of things made in China over here also. You know it's a shame when companies export things to different places to be made because of cheap labor which results in a lot of people out of jobs here. Helen
ReplyDeleteYou know this is something we won't be able to change. This is part of how the world works. Cheaper labour overthere, cheap stuff here, TV, radio, Media make sure you create Needs and Want everything, therefore you go and work to spend again and again. As long as there will be people buying those kind of stuff (taht don't even make them happy), as long as there are buyers, there will be Dragons :D
ReplyDeleteThis is not something I think we can change, unless we start changing the rulers.
Valerie
http://journals.aol.co.uk/iiimagicxx/surreality/
And the container ships that bring the stuff over are massive ...love Jan xx
ReplyDeleteFor years, a lot of things here are made in China.
ReplyDeletePam