China…a country on record for its booming economy: Can it keep chugging away?
The “End of the Chinese Miracle” is really something to consider. For many years experts in all areas from economics and trade have been predicting its rise among the world powers. However, the year-over-year growth may be a thing of the past when considering the facts (of which accurate ones can be hard to come by).
Over the past twenty-years China has seen the biggest migration of its population from the countryside to its booming cities…larger than nearly any on record. This 277 million estimated Chinese have created 50+ major cities with more than two million people each. If you don’t realize have immense that is, consider that would equal the population of London 88 times over.
Can this exodus of migrant workers continue?
The truth is not likely. This shift from workers to cities has built up the Chinese economy but with less available to make the move and a slowing economy this really can’t continue for much longer with the fact that China is aging fast. On a psychological level, the Chinese migrants have had decades to consider whether this move to work in cities in new cities is worth the uprooting their lives and the reality is for many it has not been a success.
Low pay is needed to keep this going and China can’t keep this up. There are plenty of countries like Bangladesh that can easily match the pay with its lower cost of living. As a result, we see more and more factories moving away from China. What becomes of these cities built on the production industry? What about its millions of workers? The video from the Financial Times provides a really interesting look at the realities on the ground with facts, interviews with Chinese workers, bosses, and more.