China Says Bye to Cheap Labor

President Obama calls to push ahead with free trade deals with Panama, Colombia, and South Korea, promising to double US exports over the next five years. He also singled out China as a key market where American firms would like to sell, and called for a level playing field there for US companies. Alyona raises the point, what about China's Generation Y? Approximately 200 million individuals born between 1980 and 1989, that are internet savvy, and mobilizing for workers rights for fairer wages. Alyona asks, Michael Stanat author of China's Generation Y: Understanding the Future Leaders of the World's Next Superpower, how will this affect the US?

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[fastkillmmm]

China had lifted 7 hundred millions of people from poverty since 1981, now the number of people in poverty is lesser than 1 hundred millions, Chinese gov't estimates that China will solve this problem in 5 yrs. China are busy moving a lot of people from poor no water land to brand new small towns where they can make money, the economic growth in Western China is about 15-20%, far faster than the East, Chinese will have jobs and money to buy more products to push the economy keep growing.

[LordDyhalto]

Doubling exports is easy when anything times zero is still zero.

He should try quadrupling exports. It's just as easy.

[redwhitedude]

@fastkillmmm I hope they do it right. I've already read about crap like intellectual property theft and silly regulations from foreign companies. You also have some seriously insolvent state owned enterprises that are just draining money from more productive uses. Not to mention of cronyism from CCP monopoly in power. Some issues to keep in mind. The first may prevent companies from moving higher tech stuff to the PRC.

[SanfranciscoUB]

On top of that today in China more than 65 million apartments are empty and 30-40% of every office buildings are empty. In other ways they are building the biggest bubble burst in history maybe communist style collapse something?! Like Russia in 1990.

[toowaker37]

We may well have won the war with China and we didn't even need to fight them. With China polluting their country and ruining their drinking water causing cancer rates to soar we'll just sit back and let you trash your country and when you want your money back from US debt will just tell you sorry we don't have it and you'll be stuck in a rotting sewer of garbage and pollution.

[toowaker37]

Everything that happened to the US manufacturing will happen to China. As automation takes over and the unskilled labor jobs move to other 3rd world countries the Chinese will go through there own recessions. China is addicted to exporting goods and importing wealth. When the world decides to stop importing because the Chinese decided they'd like higher wages we'll just tell you to keep your cheap chinese junk and your Chinese middle class will get to taste unemployment and uncertainty.

[fastkillmmm]

@redwhitedude Don't worry, Chinese gov't has so much money on hand, we have the future, gov't will put a lot of money to invest in new technology, green technology and education. On the other hand US is a falling empire, US fails to manage its finance, in US many people have to sleep on the street, US's crime rate is one of highest in the world, US is full of debts, sooner or later the poor black guys will come out to burn down your whole cities like what happened in 1992 of LA.

[redwhitedude]

@fastkillmmm I wouldn't say it's a given yet. As I said China is still at a relatively early stage in development. It has a long way to go as evidenced by the fact that most people are barely hanging on and the Government can barely afford any safety nets for so many people. If something goes wrong they'd be on the streets to protest because that is the only outlet they have to express themselves. R&D in china has just begun and it will take at least 2 decades to show the results.

[fastkillmmm]

@redwhitedude Doesn't matter, we have the future, we're rising power, our people are getting richer and richer, country is stronger and stronger, gov't has a lot of money in hand can spend in technology, green energy, education and so on. Look at US, gov't spends all its money on bail out some of useless finanical companies and banks, America is on the brink of collapse, US is an empire of sun set.

[redwhitedude]

@fastkillmmm True the US has seen better days. But China is being overhyped a bit much. The country is still relatively poor. The main criterion that they are competing is on price. Cheap labor costs. They don't have much in Chinese brand recognition which generally tends to be a mark of more advanced countries. They started fairly recently so it is not surprising that they are at the beginning stages by competing on price mostly. at least 4/5 of the population is barely hanging on.

[fastkillmmm]

@redwhitedude But we're a rising power but US is a falling power with an economy inside toilet.

[redwhitedude]

@fastkillmmm Most people are still relatively poor. This won't change for at least the next 2 decades.