China Is No Longer A Low-Cost Producer

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Thursday, April 11, 2013 China Is No Longer A Low-Cost Producer China's explosive economic growth has largely been driven by its booming exports.  And its exports have been driven by its low cost of production. However, with its working age population shrinking, wages have been on the rise.  And global manufacturers have increasingly moved toward even lower cost countries. "China is no longer a low-cost producer," writes KKR's Henry McVey. "Importantly, we think rising wages, particularly at the low end, are a structural phenomenon as the population of younger workers aged 15-29 will shrink at an average pace of five million a year between now and 2030, largely due to the one-child policy implemented in 1979. By comparison, this age bracket had actually been growing by two to three million per year annually until recently." Here's a chart from McVey's report showing wage trends in Asia's lowest cost countries: Read » Also On Money Game Today: 5 Smart Insights For Financial Advisors Bitcoin Has No Intrinsic Value, And Will Never Be A Threat To Fiat Currency Advertisement CHART OF THE DAY: The Japanese Bond Selloff That Everyone Is Talking About CHART OF THE DAY: Why The Personal Savings Rate Is Tumbling CHART OF THE DAY: Companies Are Using Their Cash Much More For Dividends And Buybacks Than They Used To Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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