Manufacturing in China

As wage rates in China increase, more of its labour intensive manufacturing have shifted to Indonesia, Mexico and Vietnam.

When that happens, other parts of its manufacturing sector advance up the value chain mainly as its technology processes improve.

For example, China has overtaken Japan as the world’s largest exporter of automobiles.

Keep in mind that China still has a working population of nearly 1 billion.

That is 3 times larger than the combined working population of Indonesia, Mexico and Vietnam.