China’s New Growing Pains Not All Due To Trump’s Trade War

Posted December 18, 2018

Under Economic Issues, International Trade Issues

(Kenneth Rapoza – Forbes)

China’s economy is going through a serious structural change. It’s changing the face of manufacturing and labor markets there at a time when President Trump is waging a trade war against China. Despite those tougher conditions for Chinese exports, many of which are made as contractors building and assembling for American brands, the China slowdown has more to do with a quickly modernizing economy than weakness in global trade.

In the simplest of terms, China is automating its factories. It is the largest buyer of robotic equipment. Their companies are setting up shop in Southeast Asian nations like Vietnam, building factories or contracting manufacturers abroad to do their work. It’s like old United States mill towns in the 1970s and 1980s who relocated first to cheaper producers in southern states, then later to China. China is going through this today.

China is moving up the value chain. They are becoming more high tech, and demands on them to go along with Western-style regulations on the environment has Beijing, at least, cracking down on pollution, let alone labor abuses that were much more common prior to China’s entry into the World Trade Organization. Click here to read more.