Actually the problem has already emerged in China’s most development areas including the Yangtze River Delta and the Pearl River delta, where the labor supply could not meet the demand in years.
Indeed China’s economic growth has mainly relied on its ample supply of labor. It is the labor intensive manufacturing and processing industries that have given China such an advantage in the world economy. Without sufficient labor supply, these industries will collapse.
The Chinese economy is in a new stage of development, perhaps the policy-maker need to rethink whether its export model for processing trade is a sustainable path for China’s economic growth.
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