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0 sats \ 4 replies \ @Solomonsatoshi 13 Oct \ on: Western Executives Visiting China Come Back Terrified econ
Many analysts also note that China’s growing share of worldwide manufacturing gives it increasing leverage over global supply chains – and would make it a formidable opponent in a war.
But alongside Beijing’s stated desire to dominate industries of the future, Rian Whitton, an expert at Bismarck Analysis, says increased automation is also an attempt to mitigate the impact of the country’s ageing population.
“China has quite a notable demographic problem but its manufacturing is, generally, quite labour-intensive,” he says.
“So in a pre-emptive fashion, they want to automate it as much as possible, not because they expect they’ll be able to get higher margins – that is usually the idea in the West – but to compensate for this population decline and to get a competitive advantage.”
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It is a classic example of government responding to known trends and directing capital toward where it can achieve strategic economic advantage.
At the same time the Chinese government has raised the age of retirement from 50 for women and 55 for men to 55 and 60 respectively.
Governments responding to known trends with logic and capital direction can significantly advantage an economy.
Market forces alone are not sufficient.
Another example is the strategic advantage China now holds with rare earth supply chains.
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Yes but that is not a logical response to the point I have made.
You demonstrate inability to engage in sequential reasoned debate where you recognise understand and respond to a respondents points.
The Chinese governments deliberate fostering of robotics does logically respond to the population and demographic trends you refer to...while also increasing Chinas international competitiveness and war readiness.
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