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iShares China Large-Cap Message Board

  • oa92000 oa92000 Jan 9, 2012 11:27 AM Flag

    How china keep their citizens employed ?

    anybody knows?

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    • China is walking a tightrope with employment. Obviously, they are still attracting foreign companies who want to open factories in China. No surprise that they will hire workers.

      However, China is no competing with Vietnam, Thailand, etc as those countries have even less expensive labor costs than does China.

      China still has a significant number of infrastructure projects paid for by the government, so those employ workers. There are rumors of cities being built even though no one works or lives there, which is another source of employment.

      Cities in western China are looking for workers, even offering them bonus pay to relocate - for new jobs like growing Apples.

      As China gets wealthier, a service class is developing to provide Big Macs and Starbucks coffee.

      Despite increasing loans (or the promise thereof) over the weekend, China still has a problem of too many workers for the available jobs, of a real estate bubble where prices far exceed the ability of the working class to afford them, and of slowing exports to developed countries that are not growing their economies.

      China is smarter with targeting internal stimulus, and thus you may see things like a discount coupon handed out for refrigerators made in China. That means more of those will be made and people will be employed making them.

      Lots of analysts looking for a boom year in the Chinese stock market - I just don't see it happening this year.

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