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Thread: China to Steer Towards Consumption Economy

      
   
  1. #1
    JockBoy87
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    China to Steer Towards Consumption Economy

    It looks like increases in wages, manufacturing costs, and currency valuation are starting to threaten China's export economy and create an appetite for consumption. Recognizing this, the Chinese government has planned on the inevitable consumer economy that will take hold in the country.

    This stunning change in direction portends well for US and Mexican based manufacturing, and trade relations with Mexico according to Street Authority writer Joseph Hogue. He also notes that resulting economic competitiveness in Mexico will likely slow illegal immigration into the United States.

    The article evoked a memory, which is why I am sharing it on JUB. I wrote a bit about this topic three years ago in a thread titled "Time to Put the Foot Down on China," when I said:

    Quote Originally Posted by JockBoy87 View Post
    Internal consumption and a rise in the Chinese standard of living would go far towards putting a dent in their trade surplus and put them on a more fair playing field with the US and other Western countries.

    http://www.justusboys.com/forum/thre...-down-on-China
    That wish may be coming true by 2015.

  2. #2
    JUB Addict maxpowr9's Avatar
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    Re: China to Steer Towards Consumption Economy

    Actually no, it doesn't bode well for the US. It's the global march downward [since the US is opposed to protective tariffs] and the situation in the US will not improve.

    There are plenty of other 2nd and 3rd tier Pacific Rim countries, including India, to exploit before manufacturing gets shipped back to the US.

  3. #3
    JockBoy87
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    Re: China to Steer Towards Consumption Economy

    Quote Originally Posted by maxpowr9 View Post
    Actually no, it doesn't bode well for the US. It's the global march downward [since the US is opposed to protective tariffs] and the situation in the US will not improve.

    There are plenty of other 2nd and 3rd tier Pacific Rim countries, including India, to exploit before manufacturing gets shipped back to the US.
    The article said 38% of US manufacturers report that they plan to move their operations to the US or to a nearby location. India is neither Pacific Rim nor close to the US, although Mexico is as the article stated itself.

  4. #4
    JUB Addict maxpowr9's Avatar
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    Re: China to Steer Towards Consumption Economy

    Quote Originally Posted by JockBoy87 View Post
    The article said 38% of US manufacturers report that they plan to move their operations to the US or to a nearby location. India is neither Pacific Rim nor close to the US, although Mexico is as the article stated itself.
    "Report" is not "occurring". Did you not learn anything for the horrible media lately. They can "report" anything but not claim it is "factual".

  5. #5
    JockBoy87
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    Re: China to Steer Towards Consumption Economy

    Quote Originally Posted by maxpowr9 View Post
    "Report" is not "occurring". Did you not learn anything for the horrible media lately. They can "report" anything but not claim it is "factual".
    I respect your right to skepticism of this figure and the media in general, but I have to say I don't share it in this particular instance.

  6. #6
    soooooo collllldddd rareboy's Avatar
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    Re: China to Steer Towards Consumption Economy

    I'm not as optimistic as you I'm afraid. I don't think the middle class manufacturing economy is going to ever return to North America.
    I just see China going into hyper production mode...remember that they have tens if not hundreds of millions who can still be co-opted or coerced into working at near slave wage levels.

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