China Article- Microeconomics

Brief Overview

There is worry that there is too much investment in China. The concern is that companies give too much power to China in manufacturing. Economists believe that companies should diversify their company’s manufacturing to other countries to avoid control.

Positive Statements

  • Its wage rates are a third of Mexico’s and Hungary’s, and 5% of those in the U.S. or Japan
  • U.S. companies are shifting manufacturing from Malaysia, Thailand, Indonesia, and even Mexico to China
  • Its revenues have grown from $100 million in 1993 to an estimated $14 billion today

Normative Statements

  • No one would say China dominates manufacturing–yet
  • It would be better if their manufacturing facilities were more geographically dispersed

If I missed any, let me know!

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