Attention Economy


Sunday, October 23, 2016

Globalization Challenges Facing China

An excellent essay by Andrew Browne:
“In the 1990s, much of the global textile industry relocated yet again, to cities like Dongguan in southern China, the world’s factory floor. Now, as Chinese wages soar, textiles and apparel along with other labor-intensive export industries are on the move once more, this time to inland China and, increasingly, to fast-growing regional rivals such as Vietnam and Bangladesh.
Globalization is shortening these cycles. Technology accelerates the churn. Like Lowell and a more recent procession of U.S. manufacturing cities, Dongguan is emptying out, and the economic and social shocks are triggering a political earthquake in China just as they are in the U.S.
The political dynamics in the two countries are very different, of course, but there are striking parallels. The most obvious are the wrenching dislocations created by a world of impatient capital, footloose labor and intricate cross-border supply chains. Vulnerable workers in both countries are feeling the pinch.”