The Post-Industrial Future is Nigh

March 1, 2013 | By | Reply More

post-industrial-Bowen-LiChina is known for its industrial might. Manufacturers, miners, utilities and builders accounted for over 45% of China’s GDP in 2012 — “The Economics”

The post-industrial age is growing fast in China. In the United States, people create more things and then export the manufacturing for these items to less expensive labor markets, such as China. This has had a tremendous impact on China’s post-industrial age, and has been a large economic boom for the country. However, the time has come for China to move beyond the industrial age and to focus  its efforts on technological innovation and invention.

China’s GDP keeps growing in recent years. Chinese industry is not only larger than the post-industrial economy now in the United States, but also larger than some other economies. According to the World bank and Homi Kharas, China’s GDP was 18 % higher than global norm in 2005, but the service is about 8% below. However, according to the article on the “The Economics”, 2013 may be the year that China can get out the shadow of the low-skilled manufacturing. According to the national statistics, services (which include transport, wholesaling, retailing, hotels, catering, finance, real estate and scientific research, among other things) accounted for 44.6% of China’s GDP in 2012. That is less than one point behind industry’s 45.3%. And services are growing faster. This strength would rebalancing the Chinese demand from exports and to consumption. This rise will help Chinese people to have faster job creation and better household spending.

The growth of China industry is fast. The undervalued currency has played its role. In an age of peace, all of the spending could be invested in productive activities. However, there are still a few problems for the Chinese industry increase. The biggest and most important problem, I think, is that China has less consumption and a massive population. The growth of population is too heavy to effectively offset job creating. Also, the  Chinese people needs to get over the low-skill manufacturing and to be creative; rather than simply manufacturing high-tech items like iPhones, they should be developing these types of items.

 

Category: China, Energy Economics

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