Lianhe Zaobao: &Nbsp; China's Transformation From World Factory To World Market Pains

Singapore Lianhe Zaobao "The 13 daily journal said that to see China's pay surge, we must put it in the general trend of world economy to understand. As western economies collapsed after the subprime mortgage crisis, China was almost forced to transform from "world factory" into "world market", in search of new driving force for economic development. To become a "world market", there must be a large consumer. 1 billion 300 million the great power of a large population can only become the second "world market" in the painful turn when it has successfully completed the second step of "let most people get rich".

The excerpts are as follows:

The leading generation in the electronics and automobile manufacturing industry raises 30% to employees. After such a demonstration effect, it can be imagined that the wave of wage increases for factory workers in China's manufacturing industry will sweep across the Pearl River Delta in a short time and wave to the whole country.

China acknowledges that the supply of workers under the age of 40 has been reduced by 20% owing to the one-child policy. The reduction of workers means that their bargaining power is enhanced.

But if we blame the wage shortage entirely on the shortage of labour, then there is a point. Disabled people's ears and eyes 。

Labor and oil are different resources. Although a country can not change the hat of a magician like a rabbit to a working age army at any time, labor resources can be reorganized by controlling wage levels, social security, working conditions and work intensity, etc., so that people who are not willing to join the labour force will be allowed to return to the field.

Indeed, China's surplus labor force has been reduced than before, but the fundamental reason for the shortage of labor in China's manufacturing industry is still that the wage level of the management is far behind the inflation of living expenses and soaring housing prices.

Statistics from the Chinese Academy of Social Sciences show that the wages of migrant workers have increased by 2% to 5% in the first few years of the past 10 years, and increased by about 7% during the period 2004-07, compared with 16% last year.

Migrant workers suddenly found that their meager salaries have not risen much for many years. Unlike the first wave of migrant workers who came to China's big cities from 80 to 90s of last century, the post-80s migrant workers were not satisfied with saving money for a few years and then returned home. They want to settle in prosperous metropolis and change the fate of the rural people from now on. This means that they need higher incomes to support their city dreams.

The bargaining power of Chinese workers in the labor and capital game has greatly improved with the expansion of their knowledge and vision. The pay surge is only one side reflected.

More importantly, look at China. Pay rise We must put it in the general trend of world economy.

As the US led western world economy collapsed after the subprime mortgage crisis, China was almost forced to transform from "world factory" into "world market", in order to seek new impetus for economic development.

To become a "world market", China must have a large consumer population. At present, those who support the Chinese consumer market are mainly those who can sign the bill for public consumption, and the urban white-collar workers who live on monthly salaries. The general working class has quietly faded from mainstream consumer groups in the past ten years.

As long as the share of labor remuneration in GDP remains at a low level, manufacturing workers will not be able to participate in consumer groups. China's need to drive domestic economy through consumption will not become a universal phenomenon. Continuing to rely on soaring government investment to drive the economy will create a huge deficit and become the entrance of international hot money to slaughter the renminbi. It is by no means a permanent solution.

In order to break the bottleneck of the planned economy, Deng Xiaoping shouted "let some people get rich first". 30 years later, the Chinese will begin to rethink how to build a more balanced, more efficient and stable economy in the process of "crossing the river by feeling the stones", so that not only some Chinese, but also as many Chinese as possible can share the fruits of economic growth.

Only after the successful completion of the second step of "let most people get rich" can the 1 billion 300 million large population establish their position as the second "world market" in this painful turn.