We all know China has been enjoying remarkable economic growth and a result of it has been the increase in wages for workers. The Wall Street Journal reported Monday that many companies in that country are having trouble filling job openings. Accompanying these conditions is the general economic slowdown in China.
Expansion of American companies in recent years in China also has slowed down. Higher wages and transportation costs have put a dent in China’s advantages over the United States in the production of goods.
China’s urban areas have become more westernized and as that has been happening the country has experienced some of the same problems that America and some European countries have experienced. To keep the workers content, China has had to raise wages and benefits and its economic advantages have been slowly disappearing. There has been considerable worker unrest in China. The communist government has relaxed many of its controls in order to keep the people in line. Over the years, there has been growth of private enterprise as the government relaxed controls.
We have heard visitors to China express a belief in the past decade that they feared a revolution may take place because of worker unrest and the other controls the government imposes on the people. The government so far has been able to maintain a high level of control over the people because it has permitted more freedoms. The government even has had an economic stimulus plan. Labor-saving equipment is being installed. It is going through some of the conditions that has faced America for some years.
It is believed that China’s less competitive production of products in the global marketplace may result in a greater demand for imports of consumer goods.
The rise in wages was predictable. There are human nature instincts in all races that are the same. It’s hard to suppress those instincts, especially when degrees of freedom prevail.