Cousineau <rcous...@sfu.ca> wrote:
> > Well, generally speaking, it's enough to flood the region (mainland
> > China, specifically) with a torrent of FDI; and capital, supposedly,
> > always seeks the highest rate of return. How long can it continue?

> > Luke

> See Japan, postwar rise of. Or Taiwan, or Korea. Basically, it continues
> until a combination of rising wages and skills in the country
> effectively puts them out of the global low-end manufacturing business,
> but into more skilled, more valuable specialties. With Japan, it meant
> they stopped manufacturing cheap electronics and stamped-tin trash and
> became suppliers of good electronics, cameras, automobiles,  bicycles,
> and so forth. Taiwan similarly faced that pattern, to the point that
> while they produce many good, high-end bikes (Giants, most notably, but
> a great many other non-crappy bicycles are built there, regardless of
> the nationality of the company that designs the bikes and puts their
> name on them), they are now facing serious competition from China for
> the Wal-Mart end of the market. Korea is similarly making the transition
> from making terrible cars and commodity electronics to better cars,
> desireable mobile phones, and HDTVs.