China “Could Push Whole World into Fresh Economic Crisis”
by Wolf Richter
WolfStreet.com
April 9, 2016
After years of big wage increases in China, the supply of cheap labor is coming to an end. The migration of rural populations to cities, which in practically no time created over 250 cities with over 2 million inhabitants, is also coming to an end.
As the cost of labor has soared, the manufacturing base is now migrating to cheap-labor countries like Vietnam, leaving less work in Chinese cities for migrant laborers. With few options left, they’ve started to return to their villages. This leaves China with massive challenges, just when its debt-burdened economy can least afford them.
Given China’s size, “the demise” of its economic-growth model has “huge implications for the global economy,” according to the Financial Times’ fascinating, informative, and dark documentary, “The End of the Chinese Miracle.” It’s only 15 minutes, and worth every second of it:
The Rest…HERE
