Rising labor costs in China - Currency valuation?
Thursday, April 11, 2013
10:20 AM
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Labels: chinese , costs , currency , economics , global , labor , manipulation , yuan
Labels: chinese , costs , currency , economics , global , labor , manipulation , yuan
Shrinking working age population leads to increased #labor costs in #China. Vietnam, Indonesia cheaper! Will it manipulate the Yuan again?
— Techmuser (@techmuser) April 11, 2013
Now that the labor costs are going up, and the age of the working population increasing, how will China keep its exports at the top levels.
2013: Rising labor costs in China |
The birth control scheme has resulted in a check in population, but at the same time this makes fewer individuals available for labor, driving the costs up over time. To keep the economy booming, there could be 2 ways out:
- Remove birth control and let population grow again. Not sure if this is possible since the mindset of the population changes over time.
- Like always, devalue the yuan so the labor is still cheap and the exports continue at the same pace they are right now!
Which will be chosen?
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