Zombie Robot Apocalypse Cancelled

Mistermeaner

You're on a roll cells

cells

Generali wrote: »

Well labour costs are rising in China and quite quickly AIUI. Lots of clothing that would have been made in China a decade ago is made in Bangladesh now for example. China has been following the Hong Kong development model of starting off making very low added value products and moving into making more added value stuff.

The only problem is they're trying to hang on to the low value added stuff too like making iron and steel. The Party hasn't grasped the fact that moving from being a middle income country to a rich one involves adding more value and value simply isn't added at that end of the manufacturing chain by employing people.

At that end of the chain it's done by producing alumin(i)um as the Icelandics do: with cheap power and huge amounts of automation, not lots of very cheap people getting killed on the job.
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Steel is an economic enabler and plenty of rich countries eg USA Germany Japan produce a lot of steel.

The idea that manufacturing low priced goods will keep you poor is in my view wrong. The richest nations in the world manufacturer lots of cheap stuff. Eg plastic cups. Pretty much as cheap an item as you can get. Two biggest manufacturers and exporters are.....China and the USA.


Also if you imagine a single person on an island. He can get rich in two ways. One is he gets really good at making the things he needs and the other is that he has something or can make something that the other people on nearby islands really want/need. China can never become the latter (examples would be Switzerland Qatar Norway) but china can definitely become the former and examples would be the USA Japan and....China.