The End of Cheap China

China: It’s Not the Nation You Think It Is

Outsiders wrongly assume that China has millions of poor people who will work for pennies. China does have a vast number of people, 1.3 billion and counting, but pennies won’t do anymore. China was known for cheap labor in the past, but no longer. Strong foreign investment in recent years has produced millions of relatively well-paying jobs for Chinese men and women. The upsurge is a wonderful time for China’s young people. They have watched their nation’s economy soar. They are enthusiastic about the future and excited about their individual prospects.

This marks a big change. As late as the 1990s, Chinese workers would take any job to feed themselves and their families. Finding a job was terribly difficult, but now plenty of work is available in China, and much of it pays a good wage.

The Impact of Skyrocketing Wages

As Chinese factory wages increase, companies that moved their production facilities to China from the United States and other nations may be forced to move again to countries with lower wages, such as Indonesia or Vietnam. Some American firms may even choose to relocate their manufacturing back...