China's Shift Towards Higher Value Manufacturing Affecting Global Prices
Monday, 4 March 2024, 12:50
China's Economic Strategy
China is focusing on manufacturing and exports to stimulate economic growth, with a shift towards higher value products like cars, computer chips, and machinery.
Impact on Global Prices
The trend of falling producer prices in China over the past 16 months is having a disinflationary effect globally, with U.S. imports decreasing while other regions see price rises.
Changing Demographics
- Declining marriage and birth rates: China's marriage rate has halved in a decade, and birth rates have also decreased significantly.
- Migration trends: Migration to cities in China has dropped by around 40%.
This economic shift marks a significant departure from the past focus on cheap manufacturing, impacting both domestic and global markets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.