It’s probably the first principle of physics that you ever learned: Newton’s law, “What goes up must come down.” Now, after a decade of stratospheric growth, that time has come for China’s economy.
China’s growth rates have slowed as the government moves away from the low-end manufacturing, export-oriented model and attempts to create a sustainable middle class within China itself.
The countries that have looked to China for affordable, mass-produced goods since the 1990s will still be in the market for those products — which increasingly will come from other locations as wages rise for Chinese workers.
So which countries are the ones to watch as potential replacements for China?
Who Will Fill The Low-Cost Manufacturing Void?
Source: Stratfor
