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China to loose labour advantage to India in a decade: Report
PTI - Beijing
China’s advantage in cheap labour will disappear in a decade with countries
like India and Bangladesh emerging as less expensive manufacturing bases, media
reports said here. China’s advantage in cheap labour will disappear and
its industrial structure will be forced to upgrade ten yens later when the “baby
boom” generation born in the 1950s and 60s enter their old age, vice-president
of Shanghai Academy of Social Sciences, Mr Zuo Xuejin said.
China’s birth rate reached its peak in the 1950s and 60s, and began to
drop in the 70s when the state began to push its “one-child” policy.
People born during the “baby boom” will gradually enter their old
age after 2015, putting an end to the country’s “demographic bonus”
(low labour cost and rich labour resources), Mr Zou was quoted as saying by
the ‘People’s Daily’ on its website.
By then, the huge social welfare will be supported by a smaller-sized workforce,
and Chinese labour will no longer be “cheap”. The country’s labour
intensive manufacturing will gradually lose its international competitiveness
and, as a result, will shift to countries of lower labour costs such as India
and Bangladesh in South Asia, the report quoted a Hong Kong newspaper as saying.
China’s industrial structure will then be forced to update, it added.
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