Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
    1. wholesaleinsight's Avatar
      wholesaleinsight is offline

      Join Date
      Oct 2009
      Location
      United States
      United States
      Posts
      657
      Thanks
      0
      Thanked
      1,917 Times in 58 Posts
      #1

      What’s China Going To Be Like In Five Years?

      Back in the day the Chinese leaders used divination bones to foretell the future and steer them in direction.

      Nowadays, Chinese businessmen are looking to China’s latest use of the Five Year Plan to move the people in the direction of what’s right when it comes to international matters. These plans have long been a fundamental source for the People’s Republic of China (PRC) since 1949. The latest version of their five-year plans are fairly straightforward as it covers expected growth but the thing about is how you read it and make it for your own business.

      Green means green

      China is taking a firm march in the alternative energy and minimizing the environmental impact as a part of longevity and prosperity for its country and economy. It’s a widely known fact that China’s polluted almost beyond repair. Even the government knows this fact, that’s why this year’s five-year plan focuses on sustainability, a national movement to fight pollution and to keep it at the forefront of national interest. China knows that the world is affected by high cost and depleting fossil fuels, so green technology will be the next power move.

      Their five-year plan wants to ramp up wind energy beyond 90 Gigawatts within next four years. Let me paint a better picture, the USA, world leader in wind power, only produces a third of that. China’s building 10 GW wind power plants to meet their 2016 deadline.

      If you’re thinking about breaking into the green field or to build ties with it, China is going to be your best friend over the next five years.

      People strong, country strong

      China’s five-year plan also covers healthcare. It focuses on the overall health and well-being of the people at large. One clear objective is to upgrade their existing infrastructure to aid the country’s people. Modern healthcare in China is still iffy, the people are getting older and they want better access to medical care. This means that China is a top priority for Big Pharma, medical equipment, nursing specialists and a slew of other companies that work in the health care industry.

      The Chinese government will even be working on a population safety net so Chinese people don’t have to break their bank accounts when it comes to health care and use that money to buy consumer goods.

      In more simple terms, the money their putting into their national healthcare has three positive outcomes: A healthier, happier people, the next leader in all sciences and to steer the people to buy more consumer goods and not so much on exporting.

      China knows that this vision needs not only a strong environment, but a strong people too. Companies around the world will experience huge gains by working with or moving into China.

      The land of inflation

      You’ve probably heard the media harp on and on about this, and it would be foolish not to write about here, although only briefly. Their five-year plan wants to increase the people’s overall income across all industries, especially for the people at the bottom of the barrel. The want a balanced economy, which means the income gap between the super-rich and the average Joe is addressed. China won’t grow as much as it can if it focuses on a “big hat – no cattle” model.

      This is a tricky situation for China since it bumps up the income of the workers, it’ll greatly affect its reputation as a cheap manufacturing base. This is what China is okay with.

      As it slowly hikes up the value system and stems more of its profits from innovation, research and development, and sales, the manufacturing will slowly move to other countries.

      By giving the people more disposable income, an upper and middle class population rivaling that of the United States is thing that a lot of companies are hoping for their own survival.
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    2. Thank you for this post:

      IMEX Sourcing Services (26 Sep 2012)

    3. wangvivi is offline

      Join Date
      Sep 2012
      Location
      China
      China
      Posts
      13
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #2
      Nice!! You must be a pro in studying China!! :-)
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

    4. IMEX Sourcing Services's Avatar
      IMEX Sourcing Services is offline

      Join Date
      Aug 2011
      Location
      China
      China
      Posts
      39
      Thanks
      5
      Thanked
      8 Times in 6 Posts
      #3
      Thats a very useful introduction to where China is heading. I think the effects of manufacturing moving out of China are very apparent already, especially in the shoes and clothing indutries. This is certainly a trend that will continue going forward.
      IMEX Sourcing Services
      Managing Your China Sourcing & Quality Control Needs
      Sourcing Services Pre Shipment Inspection China Company Verification Visiting China/Canton Fair?
      The Sourcing Blog - All About Sourcing from China

    5. China Import is offline

      Join Date
      Oct 2012
      Location
      China
      China
      Posts
      34
      Thanks
      1
      Thanked
      1 Time in 1 Post
      #4
      I agree with IMEX sourcing. China may not be as competitive in 5 years compared with today in many industry sectors due to increase labor cost, stricter environment protection and foreign investment laws. However, it will still be leading producer of manufactured goods.

    6. unifly is offline

      Join Date
      Nov 2012
      Location
      China
      China
      Posts
      3
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #5
      That is indeed true. With CPC's 18th National Congress starting today, speech from General Secretary Hu emphasizes the importance of domestic market. It can be foreseen that for the next 5 years, more attention and resource will be allocated to increase domestic demand, in stead of export. But I would think at least for the next 10 years, China's status as the "world manufacture center" will not be changed. Its established infrastructure, communication and transportation system is hard for another country(s) to match.

    7. Maple Sourcing's Avatar
      Maple Sourcing is offline

      Join Date
      Feb 2013
      Location
      China
      China
      Posts
      11
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #6
      From today's news, 2012 is the first year that QTY of China labor (age 17~59) has decreased for the VERY FIRST time. It's a sign that China labor's cost will increase steadily. In recent years, minimum wage has increased 10~15% on annual basis.

      So, in 5 years, many labor intensive industries will be moved to other lower cost areas.

    8. experience is offline

      Join Date
      Dec 2012
      Location
      United States
      United States
      Posts
      148
      Thanks
      2
      Thanked
      50 Times in 35 Posts
      #7

      The cycle of change in Asia

      Quote:

      Originally Posted by Maple Sourcing View Post
      From today's news, 2012 is the first year that QTY of China labor (age 17~59) has decreased for the VERY FIRST time. It's a sign that China labor's cost will increase steadily. In recent years, minimum wage has increased 10~15% on annual basis.

      So, in 5 years, many labor intensive industries will be moved to other lower cost areas.
      I have been involved in international trade since graduating from college and I am now in my 70s.

      Most of the trade has been in the Asia/Pacific region and over these many years I have seen many changes. I saw the emergence of Japan as a cheap manufacturer, but they were replaced by Korea, then Taiwan supplanted Korea by underpricing that country's manufacturing industries.

      When visiting my agent in Taiwan in the late 1970s as an exporter I heard complaints about cost pressures due to Mainland China factories undercutting Taiwan factories.

      Now as an importer I hear from some of my suppliers in China that costs, many of them government imposed, are making them uncompetitive. Some I know have transferred production to Vietnam and other low labor cost countries.

      The cycle of change continues and as each new manufacturing country improves its standard of living, further shifts will occur. How long can China remain the world's main manufacturing center?

      Excuse me please while I shine my crystal ball.
      To learn safe overseas sourcing and how to buy small (or large) quantities at best prices see→ http://provenchinasourcing.comLearn to find genuine manufacturers and negotiate small orders at prices way below what wholesalers charge. Written after my health enforced retirement and provides insider information from veteran with experience exporting 1978-1987 importing since 1987 Learn to import the easy way

Sign Up Now

Got something to say? Sign up now and join the discussions.

Tags for this Thread

Similar Threads

  1. Drop shipping from China – What’s the risk?
    By Stronguser in forum Dropshipping Discussion
    Replies: 4
    Last Post: 29 Mar 2011, 06:00 AM
  2. What kind of products will be hot in the next 10 years?
    By jonlebon in forum Off Topic Discussion
    Replies: 1
    Last Post: 06 Feb 2011, 12:03 PM
  3. Professional Chinese English translator with 8 years of translating experience
    By jackiefong0206 in forum Introduce Yourself To Other Members
    Replies: 2
    Last Post: 14 Feb 2011, 02:46 AM
  4. What’s up with the Paypal changes?
    By Dawgnation1689 in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 10
    Last Post: 22 Nov 2010, 07:43 AM
  5. What’s the best PPC service?
    By Born2be in forum Marketing, Advertising, SEO & SEM Discussion
    Replies: 10
    Last Post: 01 Dec 2010, 04:23 AM
  6. What’s the Big Idea?
    By wholesaleinsight in forum Business Articles & Resources
    Replies: 2
    Last Post: 27 Mar 2012, 03:20 AM
  7. What’s a lemon law?
    By Fran83 in forum Legal, Contracts, Insurance & Trade Terms Discussion
    Replies: 3
    Last Post: 22 Mar 2011, 05:36 AM
  8. What’s the Best Way to Manage My eBay Inventory?
    By BPositive in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 12
    Last Post: 19 Aug 2010, 08:38 AM
  9. What’s the Difference between Margin and Markup?
    By Jamesred in forum Marketing, Advertising, SEO & SEM Discussion
    Replies: 16
    Last Post: 27 Aug 2010, 02:55 AM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 12:43 PM. - Fixed Width