2002 October 10 Thursday
China's Economic Prospects

This article in the Far Eastern Economic Review gives the impression that China's huge pool of untapped cheap labor will allow exports to just keep rising:

Inside the squat white-panelled factories of Chint Group, women in blue smocks fasten wires to plastic switches moving along an assembly line. Their work is fast and cheap, with each employee earning just $150 a month on average. Last year the company's exports rose 28% to $35.8 million. Chint executives hope to maintain this export clip by targeting new markets, such as the U.S. and Europe.

Beijing gave Chint and others a boost recently by allowing them to bypass state-designated middlemen, driving down their export costs. Another WTO bonus is falling import tariffs, which mean these companies can now buy foreign manufacturing equipment at much reduced prices, making the final product they export even cheaper. These simple changes have had a profound impact: private Chinese companies raised exports by nearly 50% in the first half of this year.

Share |      By Randall Parker at 2002 October 10 10:19 AM  Economics Political


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