Economic Shift Creates Opportunities

Credit rating agency Fitch released a report discussing how China’s high-end manufacturing and relocation of labor-intensive factories will create many opportunities in Asia’s emerging markets. “China’s rising wages, higher land costs and real exchange rate appreciation over the past decade have reflected policy efforts to rebalance the economy and raise living standards, but they have reduced low-end manufacturing competitiveness,” notes the report. Many Chinese firms have begun moving a large portion of their production bases to less-developed economies to take advantage of cheaper labor expenses. As such, although China’s share of exports of clothing, footwear and furniture is still high, it has dropped significantly since its peak in 2014.

Shanghai Business Review is the leading English language website and print magazine for business leaders conducting business in China.