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China's Economic Discussion - Essay Example

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This essay "China's Economic Discussion" analyzes China that has been attractive for many large corporations simply because of the great population size and the low cost of production. For many years the Chinese government encouraged firms to MNCs to invest in China by providing cheap labor…
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Chinas Economic Discussion
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An increasingly educated workforce has helped to contribute to this. Before, the working Chinese population was not highly educated and thus could not perform technology-intensive jobs. Another thing that MNCs will have to watch out for is labor shortages. Because of China’s one-child policy in the 1970s and 80’s, there will be fewer young workers available for jobs in the future. In addition to this, labor costs will rise as the standard of living increases in China. As Chinese workers are becoming more skilled, they will demand pay that appropriately matches their skills.

Finally, MNCs will need to change their focus to countryside Chinese cities, which are expected to experience huge growth in the not too distant future. Many MNCs are based in major cities in the eastern part of China, but this area has already experienced major growth.

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