Why China?

China over the next decade will become the manufacturing platform of choice for the world because of its deep base of unskilled and skilled labor. The China of today is not the same China of even 5 years ago. Rapidly developing and urbanizing, China is beginning to produce everything from high end electronics to chicken exports. While a typical worker will make under $120 USD a month, salaries for some senior workers especially those capable of using CNC machine tools can reach nearly $603.90 USD a month in some provinces (China Daily Information, May 23, 2003). This compares with an average unskilled worker wage of $2.60 per hour (or $450 USD / month) in Mexico.

Wages are expected to remain stable at their relative low levels versus the rest of the world. It's a simple matter of supply and demand. According to the Far Eastern Economic Review (May 15, 2003), 240 million people are expected to move into cities over the next 20 years, even excluding the organic growth within cities. Currently, for all its growth,
China's share of world trade is only around 4% (about the same as Italy, according to The Economist, February 15, 2003), growth however, is inevitable.

The jobs provided by its burgeoning manufacturing base will be a great boon to the global economy. While in the short term, China's integration into the global economy will cause transitional pain, with growing wealth, will also come a large growth of wealthier Chinese consumers clammoring for value added services and high tech machinery that the developed world is best positioned to provide.

With jobs will also come stability for China but the greatest benefit will come from the output of these jobs. Consumers around the world will benefit from the lower costs of products from agricultural goods to electronic goods resulting in a higher standard of living for everyone around the world.

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