Services have overtaken manufacturing for the first time in Chinese history. Chinese now wealthy eno - Polidicks

[i]Video in source[/i] [quote]Industrial production in China recorded a smaller-than-expected rise in April, underlining worries that the economy may be losing steam. For many years the country has been dependent on exports for growth, but there have been concerns that its dependence on that particular sector may lead it to crash. The government has attempted to rebalance the economy by getting domestic consumer demand to drive growth. This now appears to be having an an impact as new statistics show that in the first three months of this year, the largest part of the economy was services - not manufacturing.[/quote] [url]http://www.bbc.co.uk/news/22509476[/url] With living standards and wages rising in China, many people are now actually able to buy the goods they produce. Consumers are growing in number, and for the first time, the service sector is now growing faster than manufacturing. While the road ahead is still bumpy, I think China is going to become even wealthier in the coming decades. China is also looking to [i]reduce[/i] exports in the coming years, and to focus on the growth of a strong consumer base that is already growing considerably there. [url]http://www.bbc.co.uk/news/business-22489446[/url] [img]http://news.bbcimg.co.uk/media/images/67563000/jpg/_67563146_67563145.jpg[/img] [quote]In economics, as in life, it's all about balance. Balance is what we all want - a little more sleep and a little less stress. For countries, it is about having a diversified economy with a large set of engines to generate growth. It's less stressful than relying on, say, just the consumer. Western countries have done that with varying degrees of success. But the world's second largest economy, China, has already seemingly achieved a better balance. For the West - including the United States and the UK - the rebalancing of the economy refers to cutting back on consumption (which has been paid for by incurring debt that proved unsustainable), producing more and reversing the decline of manufacturing. It also includes a desire to export more, tapping into new buyers in overseas markets so there's less reliance on the consumer at home. But for China, it's the opposite. Rebalancing its economy means raising consumption and reducing its reliance on exports. For the same reason that the West is looking elsewhere, China - already the world's largest trader - isn't counting on crisis-hit US or European consumers to the same extent as before. Instead, after 30-plus years of strong growth, Chinese consumers are in a better position to support the country's own businesses.[/quote] The 2008 crisis hit China of course, so this has slowed for a bit. With the global economy recovering however, China has also rebounded and wants to focus on becoming less dependent on exports. Agriculture meanwhile, is in relative decline. Unemployment is also well down in China, with the initial goals for jobs exceeded (creating 12 million instead of 9 million). What's even better now, is now that the Chinese have some money in their pocket, they might want to buy from the west now.

Time to move to china! [sp]:v:[/sp]

Good for them. Now if only their free speech rights were as good as other developed countries.

I guess were going to have change our hole view of the chinese. it is now "developed in china" as opposed to made in china.

[QUOTE=SamPerson123;40629296]Good for them. Now if only their free speech rights were as good as other developed countries.[/QUOTE] The government is already having its hand forced a lot of the time. It's conceding bits and pieces here and there, much like it has been since Mao died.

Holy shit the period of Industrialization and the subsequent Post-Industrialization of China really didn't take very long at all. Interesting to see how fast it swept through the country and the social/economic effects it'll have (And has had.)

This is the same chain of events that happens to almost every major world power. The UK was a mass producer. Eventually it grew into a consumer. The US took over production, had the industrial era, and then became a consumer once labor laws started being put into place. The US and a number of other countries split China up into slices and used it for production. It's been growing since then, and now has started moving from mass production into consumption. China's putting stakes in Africa, so you can bet that within the next few decades, Africa will get an influx of industry once China becomes more consumer than producer. Eventually we'll run out of areas to move mass production to and then we'll all be consumers and who knows what'll happen then.

[QUOTE=.Isak.;40629986]This is the same chain of events that happens to almost every major world power. The UK was a mass producer. Eventually it grew into a consumer. The US took over production, had the industrial era, and then became a consumer once labor laws started being put into place. The US and a number of other countries split China up into slices and used it for production. It's been growing since then, and now has started moving from mass production into consumption. China's putting stakes in Africa, so you can bet that within the next few decades, Africa will get an influx of industry once China becomes more consumer than producer. Eventually we'll run out of areas to move mass production to and then we'll all be consumers and who knows what'll happen then.[/QUOTE] Not quite. A lot of countries still manufacture goods. The difference now, is that these countries are diversifying. In fact, western countries might see an increase in exports and manufacturing now that China is balancing out.

I wouldn't be surprised if the improving living standards in China causes manufacturing plants requiring lots of cheap labour to move to places like Africa or the peaceful parts of the middle-east

[QUOTE=Van-man;40630130]I wouldn't be surprised if the improving living standards in China causes manufacturing plants requiring lots of cheap labour to move to places like Africa or the peaceful parts of the middle-east[/QUOTE] They are already doing this in fact. Mexico is one such beneficiary. Whilst the wages are similar from my recollection, the Mexicans tend to have better experience overall and a lot of facilities for things such as medical equipment.

[QUOTE=Sobotnik;40630153]They are already doing this in fact. Mexico is one such beneficiary. Whilst the wages are similar from my recollection, the Mexicans tend to have better experience overall and a lot of facilities for things such as medical equipment.[/QUOTE] I wonder what those medical facilities were previously used for :v:

[QUOTE=Sobotnik;40629245] Unemployment is also well down in China, with the initial goals for jobs exceeded (creating 12 million instead of 9 million).[/QUOTE] Not sure about the rest, but i betcha that's artificial

[QUOTE=Van-man;40630169]I wonder what those medical facilities were previously used for :v:[/QUOTE] I don't know! :D Although, oddly enough, one of the biggest successes in the war on drugs, is economic development tends to bring the violence down and weaken the cartels.

[QUOTE=Sobotnik;40630189]I don't know! :D Although, oddly enough, one of the biggest successes in the war on drugs, is economic development tends to bring the violence down and weaken the cartels.[/QUOTE] So a Military based economy? when has that ever been a problem

I'm sorry to shit into the bowl but as it is right now they are outsourcing production and ressource gathering to Africa much like we did outsource to China in the past.

[QUOTE=hypno-toad;40630203]So a Military based economy? when has that ever been a problem[/QUOTE] What? No, I was saying that parts of Mexico undergoing economic development (in large part due to Chinese and American investment), that violence rates decline and overall living standards improve. It is not by killing the druglords you end the war, it is by granting their serfs freedom and wealth that it can be done. [editline]13th May 2013[/editline] [QUOTE=Killuah;40630255]I'm sorry to shit into the bowl but as it is right now they are outsourcing production and ressource gathering to Africa much like we did outsource to China in the past.[/QUOTE] Not at all a problem. Now those parts of Africa shall develop.

Yeah no, Chinese multies buying land for cheap in Africa and driving up prices are already a problem. And many others. [url]http://www.youtube.com/results?search_query=China+Africa&oq=China+Africa&gs_l=youtube.3..0.435.2802.0.3049.12.10.0.2.2.0.68.542.10.10.0...0.0...1ac.1.11.youtube.WgNMrYsM9mM[/url]

This regularly happens to many developing countries. Their cheap labor is ruthlessly exploited until their economies grow enough to form a middle class. The difference is, a billion Chinese people adopting a middle class lifestyle is going to be disastrous for a planet that can only sustain a first world standard of living for about 2 billion people. So, who's next? My money's on Africa, it's about time they got their turn sewing jeans and gluing together iPhones for 25 cents a day.

[QUOTE=Used Car Salesman;40635430]This regularly happens to many developing countries. Their cheap labor is ruthlessly exploited until their economies grow enough to form a middle class. The difference is, a billion Chinese people adopting a middle class lifestyle is going to be disastrous for a planet that can only sustain a first world standard of living for about 2 billion people. So, who's next? My money's on Africa, it's about time they got their turn sewing jeans and gluing together iPhones for 25 cents a day.[/QUOTE] Its going to be interesting seeing "Made in Nigeria" on products soon.

[QUOTE=Sobotnik;40629340]The government is already having its hand forced a lot of the time. It's conceding bits and pieces here and there, much like it has been since Mao died.[/QUOTE] Holy fucking shit. Friedman and Rothbard were right all along the way. [QUOTE]So, who's next? My money's on Africa[/QUOTE] I hardly see Africa as a possible candidate for cheap labor emigration. Without a firm and strong state this is impossible. Most african countries have a totally absent state and are still submerged in civil conflicts. Maybe northern/southern africa, but else....forget it. Ehhhh.....I see the rest of Asia, India particularly and maybe, MAYBE, Central America (Mexico is not included).

[QUOTE=Used Car Salesman;40635430]This regularly happens to many developing countries. Their cheap labor is ruthlessly exploited until their economies grow enough to form a middle class. The difference is, a billion Chinese people adopting a middle class lifestyle is going to be disastrous for a planet that can only sustain a first world standard of living for about 2 billion people. So, who's next? My money's on Africa, it's about time they got their turn sewing jeans and gluing together iPhones for 25 cents a day.[/QUOTE] My money is on Mexico.

[QUOTE=Intoxicated Spy;40636073]My money is on Mexico.[/QUOTE] Mexico is already past the dirt-cheap labor phase, the Big 3 have been building cars there for years.

[QUOTE=Sobotnik;40630041]Not quite. A lot of countries still manufacture goods. The difference now, is that these countries are diversifying. In fact, western countries might see an increase in exports and manufacturing now that China is balancing out.[/QUOTE] Yeah, I just threw a simplified linear version together so you could see how production-consumerism traveled between three major world powers over time. In reality you've got production all over South Asia and there are hundreds of countries outside of this pattern because it's actually nonlinear. It's just interesting that we can expect the Chinese stakes in Africa to become the next major production center as China grows into a more consumer-focused and less production-focused society, which is already happening.

The question is...once we have filled all the roles in cheap production...what will we do with all those unemployed due to machines taking their places?

[QUOTE=Cutthecrap;40636747]The question is...once we have filled all the roles in cheap production...what will we do with all those unemployed due to machines taking their places?[/QUOTE] Well, We could always have them take roles of services as expected in a service based economy. Or Genocide. Theres always mass genocide, Which is terrible, But would fix problems of overpopulation.

One of the most powerful economies in the world and yet they sit about 100 on the Human Development Index. Hopefully this continued shift bring the standard up there a bit.

[QUOTE=.Isak.;40629986]This is the same chain of events that happens to almost every major world power. The UK was a mass producer. Eventually it grew into a consumer. The US took over production, had the industrial era, and then became a consumer once labor laws started being put into place. The US and a number of other countries split China up into slices and used it for production. It's been growing since then, and now has started moving from mass production into consumption. China's putting stakes in Africa, so you can bet that within the next few decades, Africa will get an influx of industry once China becomes more consumer than producer. Eventually we'll run out of areas to move mass production to and then we'll all be consumers and who knows what'll happen then.[/QUOTE] Then, robots will do the manufacture for us and we will all live in harmony and constant pleasure.

[QUOTE=Awesomecaek;40639483]Then, robots will do the manufacture for us and we will all live in harmony and constant pleasure.[/QUOTE] The rich, that is. The rest of us? Thrown away like a used condom.

[QUOTE=Jeep-Eep;40639540]The rich, that is. The rest of us? Thrown away like a used condom.[/QUOTE] Wait, does that mean somebody is finally going to put dick into me?

[QUOTE=Jeep-Eep;40639540]The rich, that is. The rest of us? Thrown away like a used condom.[/QUOTE] Yeah maybe if the concept of economic growth didn't exist, and if you live in a primary+secondary industry dominated economy. [editline]14 May 2013[/editline] Would you mind giving a retort rather than rating dumb?