20 years ago, China was 3 times cheaper than the US. But following accelerated economic growth and exposure to international trade, it became significantly more expensive, and now the prices there are only a third cheaper than those accepted in the US.
This has extensive macroeconomic consequences: on the one hand, the required wages are more expensive, so that production in China can no longer rely on cheap labor. On the other hand, the local demand is increasing when people can afford a higher standard of living.
Now, China is required to readjust the nature of its economy, to deal with the new reality.
What is one figure per day?
In the “One Data a Day” section, we seek to make current issues accessible through numbers and data, to put important issues on the agenda, and to simplify complex events. Feel free to suggest topics for us to review