Painther--of course cheap labor is not all that matters. Look at Sweden and Norway. But for the Chinese economy it is crucial (that and the states ability to control it). These two factors are the foundation of the Chinese economy, which is NOT based on innovation. The Chinese are trying to diversify into an innovative economy--hence the rise in patents, and massive investment in science education. I don't think China will make that transition in time, and its savings rate will decline as the population ages (just like in every other country).
And how is this US rhetoric? The US does not benefit from this. India is the beneficiary.
PS. The Western dominance of the globe's finances was a two hundred year blip. For the rest of human history Asia dominated, and it is inevitable it will again.
Painther--of course cheap labor is not all that matters. Look at Sweden and Norway. But for the Chinese economy it is crucial (that and the states ability to control it). These two factors are the foundation of the Chinese economy, which is NOT based on innovation. The Chinese are trying to diversify into an innovative economy--hence the rise in patents, and massive investment in science education. I don't think China will make that transition in time, and its savings rate will decline as the population ages (just like in every other country).
And how is this US rhetoric? The US does not benefit from this. India is the beneficiary.
PS. The Western dominance of the globe's finances was a two hundred year blip. For the rest of human history Asia dominated, and it is inevitable it will again.