NC State Ag Economist Dr. Mike Walden – “Is China Following the US?”

 

Mary:  I’m Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks if China is following the US.  Mike, China greatly expanded its manufacturing sector in recent decade – some say at the expense of US manufacturing.  But with the recent slowdown of the Chinese economy, is manufacturing in China going the same way as manufacturing in the US?

Mike:  Summary Answer

  1. It appears so
  2. When China was opened to world trade in 2000, many manufacturers – including some from the US – expanded operations in China to take advantage of low cost labor
  3. The textile industry is a good example
  4. Now, for example, the Chinese textile industry is moving elsewhere where labor is cheaper
  5. Continues the migration of the textile industry – England, New England, southern US, Asia
  6. China is seeing a loss of jobs
  7. Wants to again follow the US model of generating growth and jobs from services – but so far, Chinese consumers aren’t generating enough demand
  8. So China’s big question is, where to go next
  9. I’m MW

Mary:  And I’m Mary Walden for the North Carolina Cooperative Extension Service


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