“All of this would seem to suggest an infinite supply of labour that allows China to produce an ever-increasing range of manufactured goods at ever-diminishing prices.
But the picture appears to have dramatically changed this year – while the fearful reaction from rival manufacturers in the rest of the world is peaking.
While prices for manufactured goods continue to fall in China, food prices have sky-rocketed. ”
In this Sidney Morning Herald article, John Garnaut quoted some economists saying “the quiet shift in supply and demand for rural labourers may signal China’s infinite supply of cheap labour is coming to an end with profound implications for China itself and the world around it.” (subscription is required for the SMH site.)
