In a YouTube video The End of Cheap China, the narrator said, “China is well known as the factory of the world, and Guangdong province is the factory of China. For over two decades, the cheap labor of the Pearl River Delta has made the worlds goods. But with costs rising fast, Guangdong is losing its competitive edge, and now the government wants to move away from its labor intensive, low wage low margin model, and move up market.”
Of course, this prediction was wrong. Compared to the rest of the world, China will always cost less. The government controls the value of the currency, saves money instead of running a deep debt and has goals to find a balance between an economy that exports and one that is fueled by a growing middle class. No matter how much the world tries to under price China, the Chinese will work harder for less. The reason for that is piety. If you are interested in seeing piety from a different perspective, read my series The First of All Virtues – Part 1.
Lloyd Lofthouse is the author of the award winning My Splendid Concubine.